A job offer usually quotes gross pay: the full amount before taxes and deductions. What you can actually spend is your net, or take-home, pay.
Why it matters
- Rent and budgets should be based on net pay
- Net pay is often 70% to 80% of gross, but it varies a lot by state, benefits and retirement savings
- Your first pay stub is the best guide to your real take-home pay
General educational information, not financial or tax advice. Cents and Common Sense isn't paid by any bank, lender or card company.