Take-Home Pay Calculator

What this calculator does

This calculator converts your annual gross salary into take-home pay after the four major U.S. payroll deductions: federal income tax, FICA (Social Security + Medicare), state and local income tax, and any pre-tax benefits you elect (such as 401(k) contributions or health insurance premiums).

How federal income tax is computed

The IRS uses a graduated bracket system. Your taxable income — gross minus pre-tax deductions minus the standard deduction — is split into slices, and each slice is taxed at a different rate. For 2025, the single brackets are:

• 10% on the first $11,925
• 12% from $11,925 to $48,475
• 22% from $48,475 to $103,350
• 24% from $103,350 to $197,300
• 32% from $197,300 to $250,525
• 35% from $250,525 to $626,350
• 37% above $626,350

The 2025 standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household.

FICA: Social Security and Medicare

FICA is a flat 7.65% on most workers — 6.2% Social Security up to the wage base ($176,100 in 2025) plus 1.45% Medicare on all wages. High earners owe an additional 0.9% Medicare surcharge on wages above $200,000 (single) or $250,000 (married joint).

State income tax

State income tax varies wildly. Nine states (Texas, Florida, Nevada, Washington, Wyoming, Alaska, South Dakota, Tennessee, New Hampshire) have no broad personal income tax. California, Oregon, and Hawaii top the chart at over 10% for top earners. Because modeling all 50 states accurately is out of scope, this calculator takes a single effective rate as input. Use 0 for no-income-tax states.

Tips

• Capture your 401(k) match. If your employer matches contributions, contributing up to that match is the highest guaranteed return you'll find anywhere.
• HSA > FSA. If you have a high-deductible health plan, an HSA is triple-tax-advantaged: pre-tax contributions, tax-free growth, tax-free withdrawals for medical expenses.
• Don't over-withhold. A big tax refund means you gave the government a 0% interest loan. Adjust your W-4 to come closer to break-even.
• Marginal vs effective. Your effective rate is always lower than your marginal rate. Don't confuse the two.

Frequently asked questions

What is the difference between gross and net pay?

Gross pay is your salary before any deductions. Net pay (also called take-home pay) is what actually lands in your bank account after federal income tax, Social Security and Medicare (FICA), state and local taxes, and any pre-tax benefits like a 401(k) or health insurance.

Why is my take-home so much less than my salary?

For most U.S. workers, federal income tax (10–37% marginal), Social Security (6.2%), Medicare (1.45%), and state income tax (0–13%) together take 20–35% of gross. Pre-tax 401(k) contributions and health premiums reduce gross further. The result: $80,000 in gross often nets $55,000–$62,000 depending on state and benefits.

How does FICA work?

FICA is the combined Social Security and Medicare payroll tax. The employee pays 7.65% (6.2% Social Security on the first $176,100 of 2025 wages, plus 1.45% Medicare on all wages). High earners pay an additional 0.9% Medicare surcharge on wages over $200,000 (single) or $250,000 (married joint). Your employer matches the 6.2% + 1.45% but not the surcharge.

Should I increase my 401(k) contribution?

Pre-tax 401(k) contributions reduce your federal taxable income and FICA wages, so each $1 contributed costs less than $1 in take-home. They also grow tax-deferred. At minimum, contribute enough to capture any employer match — that's an instant 50–100% return. Beyond that, balance with a Roth IRA or other goals based on your tax bracket and time horizon.

What is the difference between marginal and effective tax rate?

Your marginal tax rate is the rate on the next dollar you earn (the bracket your last dollar falls in). Your effective rate is total tax divided by total income — it's always lower than your marginal rate because of the graduated bracket structure and deductions. A worker in the 22% marginal bracket might have a 15% effective federal rate.

Does this calculator handle every state?

State tax varies enormously — flat rates, brackets, deductions, credits, and reciprocity rules. To keep this calculator accurate and maintainable, you supply a single effective state + local rate. For high accuracy, look up your state's official tax tables or use a state-specific calculator.