What is the difference between personal income and disposable personal income?

Question

Quizplus · Accepted Answer

Personal income refers to the total income received by an individual or household, including wages or salaries, rental income, and interest income. However, personal income taxes are deducted from personal income to arrive at disposable personal income, which is the income available for households to spend or save after taxes have been paid.

Therefore, the difference between personal income and disposable personal income is the amount of personal income taxes paid by individuals or households.

What Is the Difference Between Personal Income and Disposable Personal