What is an annual salary?

An annual salary refers to the total amount of money you receive as compensation for your work over a year. Understanding this crucial figure can help you calculate your tax liability, develop a proper personal financial plan, and even decide whether you want to change jobs, get promoted, or stick to your current role. Now let’s dive in.

What is an annual wage?

Updated: June 13, 2024 An annual wage is the amount of money an employee earns in a year. Specifically, it refers to a fixed salary, or total expected payment, for the work an employee completes. It is usually a before-tax estimate, or a gross wage before deductions have been applied.

What is annual income?

Annual income is the total amount of money you earn during one year. It includes your salary and other payment sources such as Social Security checks and welfare assistance. In some cases, your annual income might be for a calendar year, which is from January 1 to December 31 of the same year.