Nontaxable Wages Definition

Nontaxable wages are income sources that attract no taxes and are clearly defined by the Internal Revenue Service.

Nontaxable Wages Extended Definition
The U.S. Dept. of the Treasury defines income as any wages received in the form of money, services, or property. While income sources like scholarships and insurance premiums are nontaxable, salaries, wages, tips, and unemployment compensation are fully taxed by the U.S. government.

For a detailed look at taxable and nontaxable wages as well as fringe benefits, check out the IRS definition of taxable and nontaxable income.

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Last Updated By

Rachel Blakely-Gray | Apr 28, 2023