Additional income statistics are produced from the personal income estimates. Per capita personal income is the annual total personal income of residents in an area divided by the US Census Bureau's estimates of population for that area. A common misconception of the per capita statistic is that total personal income is divided only by the working population age 16 years and older, while in fact, it is divided by the entire population of the area. Therefore, the per capita statistic represents the average level of personal income for all residents in an area. Disposable personal income estimates represent the income available to persons for spending and saving.
Disposable income includes total personal income less personal tax and nontax payments.
Both a total disposable personal income and a per capita disposable income statistic are available by state, but not by metropolitan area or county. The most current series of personal income estimates were released in April of this year, which included preliminary annual estimates for 1997. Farm income experienced phenomenal growth from 1995 to 1997, resulting in a significant impact on total personal income growth. South Dakota increased 14.1 percent compared to the US rate of 11.6 percent during this period. Although the wage, earnings and income statistics discussed in this article represent different economic measures, a common purpose is shared.