A young woman sits on her sofa and works on calculating her income with pen and paper.

What is Annual Income?

5 min read
Last Updated: November 21, 2025
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Key Takeaways

  1. Annual income is the amount of money that you earn in a year.
  2. Annual income can be gross (the amount of money you earn before your employer takes out taxes or insurance) or net (the amount of money you take home after taxes).
  3. Knowing your annual income is useful when you fill out credit applications or set your budget.

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