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Passive income is a type of unearned income that is acquired with little to no labor to earn or maintain. It is often combined with another source of income, such as regular employment or a side job.[ Passive income, as an acquired or earned income, is typically taxable.

The most popular form of passive income is investing in a stock market index fund. Other examples of passive income include rental income and business activities in which the earner does not materially participate. Passive income can come in the form of a lump sum payment, like an inheritance or proceeds from the sale of an asset such as a home or stock. It can also be paid out over time, though not necessarily at a regular amount. Some passive incomes may last for several years, or even centuries, across generations. These typically involve appreciating asset classes, such as property, dividends, or debt.