Take Home Pay Calculator

Take-Home Pay Calculator

Use our Take-Home Pay Calculator to see how much of your salary you keep after federal, state, and local taxes. Enter your income above and instantly calculate your net pay.

What Is Take-Home Pay?

  • Gross Pay- Your total earnings before any deductions.

  • Net Pay (Take-Home Pay)- The money you actually receive after taxes and deductions.

This calculator shows the difference so you can plan with real numbers, not estimates.

Taxes Deducted From Your Paycheck

Federal Income Tax

  • Based on 2025 IRS tax brackets and your filing status (single, married, head of household).

  • Calculated progressively, higher portions of income are taxed at higher rates.

  • Funds federal programs: defense, Social Security, Medicare, education, and more.

State Income Tax

  • Some states have no income tax (e.g., Florida, Texas, Nevada).

  • Others use flat rates or progressive brackets.

  • Supports state services such as healthcare, schools, and infrastructure.

Social Security Tax (FICA)

  • 6.2% of wages, up to the annual wage cap.

  • Employers match the same 6.2%.

  • Provides retirement, disability, and survivor benefits.

Medicare Tax (FICA)

  • 1.45% of all wages.

  • High earners pay an extra 0.9% above certain thresholds.

  • Funds healthcare for people 65+ and eligible younger individuals.

Local Taxes (If Applicable)

  • Some cities and counties impose additional wage or income taxes (e.g., New York City, Philadelphia).

Other Common Deductions

  • Retirement contributions (401(k), 403(b), IRA).

  • Health, dental, and vision insurance premiums.

  • Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA).

  • Other voluntary deductions like life insurance or union dues.

These reduce taxable income, lowering the taxes withheld from your paycheck.

Why Use This Calculator?

✔️ See your real paycheck after taxes
✔️ Understand the difference between gross and net pay
✔️ Compare salaries and job offers across states
✔️ Budget more accurately using your true take-home income

Frequently Asked Questions

Q: Why is my paycheck smaller than my salary?
Because gross pay is reduced by federal, state, and local taxes, plus deductions.

Q: Do all states collect income tax?
No. States like Florida, Texas, and Nevada have no state income tax.

Q: What’s the difference between Social Security and Medicare taxes?
Social Security funds retirement/disability benefits; Medicare funds healthcare for people 65+.

Q: Can pre-tax contributions lower my tax bill?
Yes. Contributing to retirement accounts, HSAs, or FSAs reduces your taxable income.

2025 Standard Deduction Amounts

  • Single: $15,000

  • Married Filing Jointly: $30,000

  • Head of Household:$22,500

These deductions reduce the income used to calculate your federal tax.

Calculate Your Net Pay Now

Enter your salary and details above to see your take-home pay after taxes. This calculator gives you a complete breakdown so you always know what’s going into your bank account.

Why Use a Paycheck Calculator?

  • Plan Your Budget - Estimate exactly what you’ll have available for bills, savings, and goals.

  • Understand Taxes - See how federal, state, and FICA taxes reduce your gross pay.

  • Evaluate Job Offers - Compare offers based on net pay, not just salary.

  • Optimize Withholdings - Adjust your W-4 to avoid big refunds or unexpected tax bills.

  • Transparency - Understand every line on your pay stub.

Key Components of a Paycheck (Detailed Breakdown)

1. Gross Pay

This is your starting point the full amount before any taxes or deductions.

  • Salaried Employees: Annual salary ÷ pay periods (e.g., $60,000 ÷ 24 = $2,500 per paycheck).

  • Hourly Workers: Hourly rate × hours worked (including overtime).

  • Other Pay Types: Commissions, tips, bonuses, shift differentials, or hazard pay.

2. Federal Income Tax Withholding

  • Based on your W-4 form, filing status (single, married, head of household), and allowances.

  • Uses IRS tax brackets, which are progressive meaning higher portions of income are taxed at higher rates.

  • The largest deduction on most paychecks.

3. State & Local Income Taxes

  • Not every state has income tax (e.g., Texas, Florida, Nevada).

  • States with taxes vary widely from flat rates (like Colorado) to progressive systems (like California or New York).

  • Some cities (e.g., New York City, Philadelphia) add their own local income tax.

4. FICA Taxes (Social Security & Medicare)

  • Social Security Tax: 6.2% of wages, up to the annual wage base limit ($168,600 in 2024).

  • Medicare Tax: 1.45% of all wages, with an additional 0.9% surtax for high earners ($200,000+ single filers).

  • Employers match these amounts, but your paycheck only shows your share.

5. Pre-Tax Deductions (reduce taxable income)

  • Retirement Contributions: 401(k), 403(b), or SIMPLE IRA plans.

  • Health Insurance Premiums: Medical, dental, vision.

  • Flexible Spending Accounts (FSA) / Health Savings Accounts (HSA).

  • Commuter Benefits: Transit passes, parking expenses.

6. Post-Tax Deductions

These come out after taxes are calculated.

  • Roth 401(k) or Roth IRA contributions (after-tax).

  • Union dues or association fees.

  • Garnishments (child support, student loan repayment, back taxes).

  • Life insurance or disability premiums (if not pre-tax).

7. Employer Contributions (not always visible on paycheck)

While not deducted, these increase the value of your compensation:

  • Employer match for 401(k).

  • Health insurance subsidies.

  • Paid time off and sick leave accrual.

How the Paycheck Calculator Works

Our tool takes your gross pay and applies:

  • Federal, state, and local withholding tables.

  • FICA contributions (Social Security & Medicare).

  • Pre-tax deductions (retirement, insurance, FSAs).

  • Post-tax deductions (garnishments, Roth contributions, union dues).

The result is your net pay (take-home pay).

Example Calculation

Monthly Gross Pay: $5,000

  • Federal Taxes: $500

  • State Taxes: $200

  • Social Security: $310

  • Medicare: $72.50

  • 401(k) Contribution (pre-tax): $250

  • Health Insurance Premium: $100

Net Pay (Take-Home) = $3,567.50

Why a Paycheck Calculator Matters

  • Real Numbers: Stop guessing. See your paycheck before it arrives.

  • Budgeting: Helps you plan for rent, bills, groceries, savings, and investments.

  • Job Switching: Compare multiple offers by net pay, not just gross salary.

  • Tax Planning: Adjust withholdings to avoid surprises at tax time.

Compliance and Accuracy

This paycheck calculator uses the latest IRS tax brackets, FICA limits, and state tax rules. It’s updated annually to reflect changes in federal and state laws.

Takeaways

  • Your gross pay is not your take-home pay.

  • Deductions can vary greatly depending on state taxes, benefits, and withholdings.

  • Using a paycheck calculator helps you make smarter financial decisions, reduce surprises, and maximize take-home pay.

Federal Income Tax

Goes to the U.S. Treasury to fund national programs: defense, infrastructure, education, healthcare programs (like Medicaid/Medicare), and government operations.

State & Local Taxes

Fund public schools, roads, state health programs, police, and fire departments. Some cities (like New York City or Philadelphia) add extra local income taxes to support municipal services.

Social Security (6.2%)

Funds retirement, disability, and survivor benefits for Americans. Today’s workers pay in to support today’s retirees.

Medicare (1.45% + 0.9% for high earners)

Funds health insurance for Americans 65+ and certain younger individuals with disabilities.

How Pre-Tax Benefits Work for You

Retirement Contributions (401k, 403b, SIMPLE IRA)

  • Lower taxable income now (reduces your paycheck taxes).

  • Money grows tax-deferred until retirement.

  • Often matched by your employer, giving you “free money” for savings.

Flexible Spending Accounts (FSA)

  • Use pre-tax dollars for eligible medical, dental, vision, and dependent care expenses.

  • “Use it or lose it” - most FSAs must be spent within the plan year (some offer a small rollover).

Health Savings Accounts (HSA)

  • Available if you have a high-deductible health plan (HDHP).

  • Triple tax advantage:

    1. Contributions reduce taxable income.

    2. Money grows tax-free.

    3. Withdrawals are tax-free if used for qualified medical expenses.

  • Unused money rolls over year to year making it a long-term savings tool for healthcare costs.

Together, these deductions don’t just shrink your paycheck they fund government services, secure your retirement, and give you tax-smart ways to cover healthcare and daily needs.