Bruto and neto income

“Bruto and neto income” sounds like some kind of weirdo math problem. It’s actually not as complicated as it sounds. Bruto income is the total amount of money you make, before any deductions. On the other hand, neto income is the amount of money you end up with after taxes and other deductions. So, if you make $1,000 dollars a month, your bruto income is $1,000 but your neto income might be less than that. Here’s an example to help you understand: Say you get paid $50 an hour for your job. That’s your bruto income. But then, when you get your paycheck, you see that your neto income is actually only $42 an hour. That’s because your employer had to take out taxes and other deductions. Fun fact: In the U.S., the average bruto-to-neto income ratio is roughly 75%. That means for every dollar you make, you end up with only 75 cents after taxes and other deductions.