Annual salary and annual income have different meanings. An annual salary is a figure you will see when applying for a job or in your employment contract. It’s a financial amount that covers the work you do for the whole year. Your annual income is how much money you have to spend on living expenses once taxes and any other deductions have been made from your salary, along with any additional income sources. This could include things like benefits, interest from savings accounts, or additional earnings from rental properties or freelance work.