### Taxable income

Taxable income is the total amount of income earned by an employee upon which tax is calculated. Defined in terms of pay item types, this is equal to Income + Special income + Leave loading + Allowances before tax - Deductions before tax. The actual amount of tax calculated is not always based on a single calculation upon the taxable income of an employee. For example, the tax calculations for leave loading and eligible termination payments are not necessarily related to the taxable income of the recipient.

An employee's taxable income is not necessarily the same as their Gross income. Only certain amounts from an employee's gross income is considered to be taxable income.