Business income refers to the earnings a business generates from its primary operations, excluding expenses like taxes, interest, and operating costs. It encompasses the revenue derived from selling goods or services, which forms the core of a company's financial health. This income is a critical indicator of a business's profitability and sustainability.

For small businesses and sole proprietorships, business income is often reported on personal tax returns, while larger corporations report it separately. Business income can be classified into various types, including gross income, operating income, and net income. Gross income is the total revenue before deducting costs, operating income reflects earnings after operating expenses, and net income is what remains after all expenses, including taxes and interest, are subtracted.

Understanding business income is vital for decision-making, as it helps determine pricing strategies, budgeting, and investment opportunities. It also plays a crucial role in tax obligations, as different forms of business income may be taxed at varying rates depending on the jurisdiction.

In the context of business insurance, "business income" also refers to the amount of money a business would have earned had it not been interrupted by a covered event, such as a natural disaster. This is often used in business interruption insurance claims.