Definition (1):
Market Income is a household’s total pre-tax income obtained from its activities in the formal economy, including wages and salaries, investment income, and small business profits. Excludes government transfer payments.
Definition (2):
In plain language, market Income is “Total income before tax minus income from government sources.”
Definition (3):
It refers to “the sum of employment income (wages and salaries, net farm income and net income from non-farm unincorporated business and/or professional practice), investment income, retirement pensions, superannuation, and annuities (including those from RRSPs and RRIFs) and other money income. It is equivalent to total income before tax minus all government transfers and is also referred to as income before transfers and taxes.”
Market Income includes the following fifteen income components:
- Earnings (salaries, wages, and self-employment income)
- Dividend income
- Interest income
- Rents, royalties, trust, and estate income
- Non-government survivor pensions and annuities
- Non-government retirement pensions and annuities
- Non-government disability pensions and annuities
- Non-government educational assistance
- Realized capital gains (losses)
- Alimony
- Child Support
- Money income not elsewhere classified
- Regular contributions from persons not living in the household
- Work-related expenses excluding child care (deducted from income)
- Imputed return to home equity on owner-occupied housing
This income does not consist of net capital gains or losses.