Use our free Salary Calculator to instantly estimate your take-home pay. Convert your annual salary to hourly, weekly, bi-weekly, or monthly amounts and see exactly how much is deducted for Federal, State, and FICA taxes. Whether you are negotiating a new job offer or planning your monthly budget, knowing your true net income is essential for financial stability.
How to Use This Salary Calculator
Understanding your true earnings goes beyond just knowing your annual salary. Our calculator breaks down your paycheck to show you exactly where your money goes. Here is how to get the most accurate estimate:
- Enter Gross Pay: Input your total earnings before any taxes or deductions. This could be your annual salary (e.g., $60,000) or your hourly wage (e.g., $25/hour). If you need to convert from hourly to annual or vice-versa, use our Hourly to Salary Calculator.
- Select Frequency: Choose how often you are paid or how you want to view the results. Options include Annual, Monthly, Bi-Weekly, Weekly, Daily, or Hourly. This helps in comparing job offers with different pay cycles.
- Set Hours (if Hourly): If you select "Hourly," enter your average hours worked per week (default is 40). Don't forget to account for potential overtime if applicable.
- Choose Filing Status: Select "Single," "Married Filing Jointly," or "Head of Household." This significantly impacts your Federal Income Tax calculation due to different standard deductions and tax brackets.
- Estimate State Tax: Enter your state's estimated income tax rate. If you live in a state with no income tax (like Texas, Florida, Nevada, or Washington), enter 0. For accurate state tax rates, consult your state's Department of Revenue.
Once you click Calculate Net Pay, you will see a detailed breakdown of your estimated take-home pay across all timeframes, along with a summary of your tax liability.
Gross Pay vs. Net Pay: What is the Difference?
The number on your offer letter is rarely the number that hits your bank account. Understanding the difference between gross and net pay is crucial for budgeting and salary negotiation.
Gross Pay
Gross pay is the total amount of money you earn before any taxes or deductions are taken out. This includes your base salary, hourly wages, overtime pay, bonuses, and commissions. When you negotiate a salary of $75,000, that is your gross pay. It is the sticker price of your labor.
Net Pay (Take-Home Pay)
Net pay is the actual amount deposited into your bank account after all mandatory taxes and voluntary deductions are subtracted. This is often referred to as your "take-home pay" or "disposable income." This is the number that matters for paying rent, groceries, and savings.
The formula for net pay is:Net Pay = Gross Pay - (Federal Tax + State Tax + FICA + Other Deductions)
Understanding Your Paycheck Deductions
Where does the money go? In the United States, your employer is required to withhold several taxes from your paycheck. Here is a breakdown of the standard deductions you will see.
1. Federal Income Tax
This is a progressive tax collected by the IRS to fund the federal government. "Progressive" means that as you earn more, you pay a higher percentage on the additional income. The amount withheld depends on your taxable income (Gross Pay minus Standard Deduction and other pre-tax deductions) and your filing status. The IRS released new tax brackets for 2024 and 2025, adjusting for inflation, which may result in slightly higher take-home pay for some.
2. FICA Taxes (Social Security & Medicare)
The Federal Insurance Contributions Act (FICA) mandates two specific taxes that fund social safety net programs. These are generally flat rates for most employees:
- Social Security Tax: 6.2% of your gross wages, up to a wage base limit (estimated at $176,100 for 2025). Once you earn more than this limit in a calendar year, you stop paying Social Security tax for the rest of the year. This effectively gives high earners a "raise" toward the end of the year. Learn more at SSA.gov.
- Medicare Tax: 1.45% of all gross wages, with no income cap. High earners (Single > $200k, Married > $250k) pay an Additional Medicare Tax of 0.9%, bringing the total to 2.35% on excess earnings.
Combined, FICA taxes take 7.65% of your paycheck. Your employer also pays a matching 7.65%, but that does not come out of your pay (unless you are self-employed, in which case you pay both halves).
3. State and Local Taxes
Most states impose their own income tax, which can be a flat rate (like Pennsylvania's 3.07%) or a progressive system similar to the federal government (like California or New York). Some cities and municipalities also have local income taxes. For example, New York City and Yonkers residents pay an additional city tax on top of state and federal taxes.
Note: Our calculator uses a simplified estimated rate for state taxes. For precise figures, check your specific state's tax tables.
Pay Frequency Explained: Bi-Weekly vs. Semi-Monthly
How often you get paid affects the size of each paycheck. While your annual salary remains the same, the number of pay periods changes the math.
Bi-Weekly (Every 2 Weeks)
You receive a paycheck every two weeks, usually on a Friday.
- Paychecks per year: 26
- Pros: More frequent pay; two months a year you get 3 paychecks ("bonus" months).
- Cons: Budgeting monthly bills can be tricky since paycheck dates shift.
Semi-Monthly (Twice a Month)
You receive a paycheck on specific dates, like the 15th and 30th.
- Paychecks per year: 24
- Pros: Consistent pay dates make monthly budgeting easier; paychecks are slightly larger than bi-weekly.
- Cons: Fewer paychecks per year; payday might fall on a weekend (shifted to Friday).
2024 Federal Tax Brackets and Inflation Adjustments
To estimate your federal tax, it helps to understand the 2024 tax brackets. Remember, being in a "22% bracket" does not mean all your income is taxed at 22%. Only the income within that bracket is taxed at that rate. This is a common misconception. Your "effective tax rate" is usually much lower than your top marginal rate.
Standard Deduction (2024):
Single: $14,600 | Married Filing Jointly: $29,200
| Tax Rate | Single Filers (Taxable Income) | Married Filing Jointly |
|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 |
| 37% | Over $609,350 | Over $731,200 |
Strategies to Increase Your Net Pay
While taxes are mandatory, there are smart ways to optimize your paycheck and keep more of your hard-earned money working for you. By understanding the tax code and utilizing available benefits, you can legally reduce your taxable income and increase your effective take-home pay without needing a salary raise.
1. Contribute to Pre-Tax Accounts
Contributions to a 401(k), 403(b), or Traditional IRA reduce your taxable income. If you earn $60,000 and contribute $5,000 to a 401(k), the IRS only taxes you on $55,000. This lowers your federal and state tax liability immediately. It's a powerful tool to save for retirement while lowering your current tax bill.
2. Utilize HSAs and FSAs
Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) allow you to pay for medical expenses with pre-tax dollars. This saves you the equivalent of your marginal tax rate on every dollar spent on healthcare. If you are in the 22% bracket, that's a 22% discount on glasses, prescriptions, and copays.
3. Adjust Your W-4 Withholding
If you consistently get a large tax refund every year, you are essentially giving the government an interest-free loan. You can adjust your W-4 form with your employer to reduce withholding, increasing your monthly take-home pay. Use the IRS Tax Withholding Estimator to find the right balance.
Related Tools for Financial Planning
Building a complete picture of your finances requires looking at more than just your base salary. Use these related tools to dive deeper:
- Hourly to Salary Calculator: Convert your hourly wage to an annual equivalent.
- Pay Raise Calculator: See how a percentage increase impacts your paycheck.
- Bonus Tax Calculator: Estimate taxes on your annual or holiday bonus.
- Hourly Paycheck Calculator: Calculate pay for weeks with varying hours.
- Overtime Calculator: accurately estimate your overtime earnings.