How the Take Home Paycheck Calculator Works
Your gross pay is what you earn before anything is taken out. Your take-home pay, or net pay, is what reaches your bank account. The difference is taxes and deductions. The Take Home Paycheck Calculator estimates each of them, so you can see your net pay for every paycheck, every month and every year.
What you enter
- Pay: your yearly salary, or your hourly rate and hours.
- Pay frequency: weekly, every two weeks, twice a month or monthly. It sets how many paychecks you get in a year.
- Filing status: single, married filing jointly or head of household. It sets your tax brackets and standard deduction.
- Pre-tax deductions: a 401(k) contribution, and health insurance premiums that are taken from your pay before tax.
- State tax rate: a percentage for your state, if it has an income tax. Some states have none.
What is taken out
| Item | What it is | How it is worked out |
|---|---|---|
| Federal income tax | Tax on your income, in brackets | Taxable income = pay - pre-tax deductions - standard deduction. Each slice is taxed at its own rate. |
| Social Security | Pays for retirement and disability benefits | 6.2% of pay, up to a yearly wage limit |
| Medicare | Pays for health care for older people | 1.45% of pay, and an extra 0.9% on high earners |
| State income tax | Tax that your state charges | Your state rate x taxable income, in the simple version |
| 401(k) | Saving for retirement | A percent of pay. It lowers your income tax, but not Social Security or Medicare. |
| Health insurance | Your share of the premium | Usually lowers income tax, Social Security and Medicare |
- Item: Federal income tax
What it is: Tax on your income, in brackets
How it is worked out: Taxable income = pay - pre-tax deductions - standard deduction. Each slice is taxed at its own rate. - Item: Social Security
What it is: Pays for retirement and disability benefits
How it is worked out: 6.2% of pay, up to a yearly wage limit - Item: Medicare
What it is: Pays for health care for older people
How it is worked out: 1.45% of pay, and an extra 0.9% on high earners - Item: State income tax
What it is: Tax that your state charges
How it is worked out: Your state rate x taxable income, in the simple version - Item: 401(k)
What it is: Saving for retirement
How it is worked out: A percent of pay. It lowers your income tax, but not Social Security or Medicare. - Item: Health insurance
What it is: Your share of the premium
How it is worked out: Usually lowers income tax, Social Security and Medicare
How the federal income tax is worked out
The United States uses tax brackets. You do not pay one rate on all of your income. Each slice of income is taxed at the rate of its bracket. For a single filer, the 2025 brackets are:
| Taxable income | Rate |
|---|---|
| Up to $11,925 | 10% |
| $11,925 to $48,475 | 12% |
| $48,475 to $103,350 | 22% |
| $103,350 to $197,300 | 24% |
| $197,300 to $250,525 | 32% |
| $250,525 to $626,350 | 35% |
| Over $626,350 | 37% |
The standard deduction for a single filer is $15,750 in 2025. It is taken off your income before the brackets are applied. The brackets, the deduction and the Social Security limit change every year, so check the latest figures with the IRS.
A worked example
You are single and earn $75,000 a year. You put 5% in a 401(k), which is $3,750. Your health insurance costs $2,400 a year. You are paid every two weeks, and you live in a state with no income tax.
| Step | Amount |
|---|---|
| Gross pay | $75,000.00 |
| 401(k) contribution | -$3,750.00 |
| Health insurance | -$2,400.00 |
| Taxable income ($75,000 - $3,750 - $2,400 - $15,750) | $53,100.00 |
| Federal income tax (see below) | -$6,596.00 |
| Social Security (6.2% x $72,600) | -$4,501.20 |
| Medicare (1.45% x $72,600) | -$1,052.70 |
| Take-home pay for the year | $56,700.10 |
| Per paycheck (26 a year) | $2,180.77 |
| Per month | $4,725.01 |
The federal income tax is 10% of $11,925 ($1,192.50), plus 12% of the next $36,550 ($4,386.00), plus 22% of the last $4,625 ($1,017.50). That is $6,596.00 in all, which is 8.8% of your gross pay. Your top rate is 22%, but your average rate is much lower. Social Security and Medicare are worked out on $72,600, because the health insurance is not subject to them, but the 401(k) is.
Chart: where the gross pay goes
Take-home pay ██████████████████████████████████████ 75.6% Federal tax ████ 8.8% Social Security ███ 6.0% 401(k) (saved) ███ 5.0% Health insurance ██ 3.2% Medicare █ 1.4%
The 401(k) is not lost. It is your own money, saved for later, so it is not really a cost.
What a 401(k) contribution costs you
Because a 401(k) lowers your taxable income, it costs less than it seems. For the same example:
| 401(k) contribution | Federal tax | Take-home pay a year | Per paycheck |
|---|---|---|---|
| 0% | $7,421 | $59,625 | $2,293.27 |
| 5% ($3,750) | $6,596 | $56,700 | $2,180.77 |
| 10% ($7,500) | $5,771 | $53,775 | $2,068.27 |
Saving $3,750 a year lowers your take-home pay by only $2,925. The other $825 is tax that you do not pay, which is 22% of $3,750.
Take-home pay at different salaries
Single, with a 5% 401(k), $2,400 of health insurance and no state tax:
| Gross salary | Take-home a year | Per paycheck (26) | Share of gross |
|---|---|---|---|
| $40,000 | $30,580 | $1,176 | 76.5% |
| $60,000 | $45,770 | $1,760 | 76.3% |
| $75,000 | $56,700 | $2,181 | 75.6% |
| $100,000 | $73,313 | $2,820 | 73.3% |
| $150,000 | $106,118 | $4,081 | 70.7% |
Why your real paycheck may be different
- Withholding is not the same as tax owed. Your employer withholds tax from each check using the form you filled in (the W-4). At tax time, you settle up, and you may get a refund or owe more.
- State and local taxes differ a lot. This calculator uses the rate you enter.
- Other deductions, such as union dues, a Roth 401(k), a health savings account, or a loan repayment, change the result.
- Bonuses and overtime are often withheld at a higher rate, but they are taxed in the same brackets in the end.
Tips
- Check your pay stub against the estimate. Each line should be close.
- Get your full employer match on your 401(k) if there is one. It is extra pay.
- Review your W-4 after a big change, such as a marriage, a new job or a child.
- Plan your budget from take-home pay, not from your gross pay.
What this calculator does not include
- Tax credits, such as the child tax credit, and other deductions that you might claim.
- Local taxes, state disability or family leave taxes, and different state rules.
- Income other than your job, such as interest, self-employment or investment income.
- Pay from more than one job, which can change the withholding.
This tool gives an estimate for general information only. It is not tax or financial advice. Your pay stub, your employer and a tax professional give the exact figures.