Take-Home Pay Calculator

Take-home = gross salary - pre-tax deductions - federal income tax - Social Security - Medicare - state tax. Federal income tax is charged on gross pay less pre-tax deductions less the standard deduction, band by band. Social Security is 6.2 percent of wages up to the yearly wage base, and stops above it. Medicare is 1.45 percent of every dollar with no cap, plus 0.9 percent more on wages above the threshold for your filing status. A traditional 401(k) contribution lowers the income tax but not Social Security or Medicare: that money is taxed on the way in and not again on the way out. This is an estimate, not tax advice. It covers the federal figures listed and nothing else: credits, itemized deductions, capital gains, the Alternative Minimum Tax and local taxes all change the answer. Check the current figures at irs.gov.

Why is my take-home pay so much lower than my salary?

Three deductions stack. Federal income tax is the largest, payroll tax takes a flat 7.65 percent on top of it, and state tax follows in most states. Add health premiums and a retirement contribution and a quarter to a third of a salary commonly never reaches the account.

Does a 401(k) contribution lower my Social Security tax?

No. A traditional 401(k) reduces the income your federal and state income tax is figured on, but Social Security and Medicare are charged on the full wage. Health insurance premiums taken under a Section 125 plan do reduce all three, which is why they are entered on a separate line here.

Why is my first paycheck of the year smaller than my last?

Social Security stops once your wages for the year pass the wage base, so a high earner sees their paycheck grow late in the year and shrink again in January when the cap resets.

How accurate is the state tax line?

It is a flat percentage you supply, so it is only as good as the rate you enter. Most states have brackets, some have local taxes on top, and a few have none at all. Use your last pay stub: divide the state tax withheld by the gross for that period and enter that.

Which year do these tax figures come from?

The built-in table is the 2025 federal one. Every figure in it is adjusted for inflation each year. If you have the numbers for another year, paste them into the table box on the form and the whole calculation uses them instead.

Is this what my employer will actually withhold?

Close, but not identical. Employers withhold using the W-4 you filed and IRS withholding tables that work per pay period, so allowances, a second job or extra withholding you asked for will move the number. Any difference is settled when you file.