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What is disposable income (DPI)?

More technically, disposable income—sometimes called disposable personal income (DPI)—is how much money is left after mandatory deductions. These tend to be taxes, including income tax, Social Security (which might be labeled as OASDI on your paycheck) and Medicare contributions, and state unemployment insurance tax.

What is disposable personal income?

After-tax income. The amount that U.S. residents have left to spend or save after paying taxes is important not just to individuals but to the whole economy. The formula is simple: personal income minus personal current taxes.

What is disposable income & Discretionary income?

Levels of disposable and discretionary income are key indicators of the health of a nation’s economy. Disposable income, also known as disposable personal income (DPI) or net pay, is the amount of money you have left over from your total annual income after paying all direct federal, state, and local taxes.

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