How to use the paycheck calculator
Enter your gross pay (the amount before any deductions), select your pay frequency, and adjust the federal and state tax percentages to match your W-4 withholding. The calculator automatically applies FICA taxes (Social Security and Medicare) and shows your net take-home pay per paycheck plus annual totals. Use detailed mode to add 401(k) contributions, health insurance premiums, and other pre-tax deductions for a more accurate estimate.
Understanding paycheck deductions
- Federal income tax: Varies by income bracket, filing status, and W-4 allowances. Typical rates range from 10% to 37%
- State income tax: Rates vary by state (0% to ~13%). Some states have no income tax
- Social Security: Fixed at 6.2% up to the annual wage base limit ($168,600 for 2024)
- Medicare: Fixed at 1.45% with no income limit. High earners pay an additional 0.9%
- Pre-tax deductions: 401(k), health insurance, and HSA contributions reduce taxable income
Gross pay vs net pay
Gross pay is your total earnings before any deductions—the salary or hourly rate stated in your job offer. Net pay (take-home pay) is what actually hits your bank account after federal tax, state tax, FICA taxes, and other deductions are subtracted. The difference between gross and net can be 25-35% depending on your tax bracket and deductions. Always budget based on net pay, not gross pay, to avoid overspending.