Paycheck Calculator
Calculate your take-home pay after taxes and deductions
Paycheck Calculator
Calculate your take-home pay after taxes and deductions
Paycheck Calculator
Calculate your take-home pay after taxes and deductions
Typical effective rate is 10–24% for most incomes.
Enter an average for your state; some states are 0%.
Pre-tax; 2024 limit $23,000 ($30,500 age 50+).
Health insurance, HSA, FSA and other pre-tax items.
Life insurance, union dues and other post-tax items.
Understanding Your Paycheck
Your paycheck is smaller than your gross salary due to various withholdings and deductions. Federal and state income taxes, FICA (Social Security and Medicare), and voluntary deductions (401k, health insurance, etc.) all reduce your take-home pay. Understanding these deductions helps you budget effectively and maximize your net income.
The average American takes home about 70-75% of their gross salary after all taxes and deductions. High earners in states with income tax may take home only 60-65%, while those in states without income tax (like Texas or Florida) typically keep 75-80%.
Use this calculator to estimate your actual take-home pay and plan your budget accordingly. The 50/30/20 rule shown above is a helpful starting point: 50% for needs, 30% for wants, and 20% for savings and debt repayment.
Paycheck Deductions Explained
Federal Income Tax (10-37%)
Progressive tax based on income brackets. 2024 brackets: 10% (up to $11,600 single), 12% ($11,601-$47,150), 22% ($47,151-$100,525), 24% ($100,526-$191,950), 32% ($191,951-$243,725), 35% ($243,726-$609,350), and 37% (over $609,350). Your effective rate is typically much lower than your top bracket.
State Income Tax (0-13.3%)
Varies by state. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Highest rates: California (13.3%), Hawaii (11%), New York (10.9%), New Jersey (10.75%). Most states range from 3-6%.
Social Security Tax (6.2%)
FICA tax on wages up to $168,600 (2024 limit). Funds Social Security retirement and disability benefits. Once you earn above this limit, Social Security tax stops for the year, giving you a temporary "raise."
Medicare Tax (1.45% + 0.9% over $200k)
FICA tax on all wages (no cap). High earners pay an additional 0.9% Medicare tax on income over $200,000 (single) or $250,000 (married). This funds Medicare health insurance for those 65+.
401(k) Contributions (Pre-Tax)
Voluntary retirement contributions reduce your taxable income. 2024 limit: $23,000 ($30,500 if 50+). Many employers match contributions—free money! Always contribute at least enough to get the full match.
Health Insurance, FSA, HSA
Pre-tax deductions for health insurance premiums, Flexible Spending Accounts (FSA), and Health Savings Accounts (HSA). These reduce taxable income, lowering your overall tax burden while providing essential benefits.
How to Maximize Your Take-Home Pay
1. Maximize Pre-Tax Deductions
Contribute to 401(k), HSA, and FSA to reduce taxable income. A $10,000 401(k) contribution saves $2,200-$3,700 in taxes (22-37% brackets), effectively giving you $2,200-$3,700 back.
2. Adjust Your W-4 Withholding
If you get large tax refunds, you're overpaying taxes each paycheck. Adjust your W-4 to claim more allowances and keep more money now instead of lending it to the IRS interest-free.
3. Claim All Tax Credits
Earned Income Tax Credit, Child Tax Credit, education credits, and others can reduce your tax bill. Unlike deductions, credits directly reduce taxes owed dollar-for-dollar.
4. Move to a Tax-Friendly State
Living in a no-income-tax state saves 3-13% on state taxes. On a $100,000 salary, moving from California to Texas saves ~$6,000/year in state taxes.
5. Negotiate Remote Work Flexibility
If you can work remotely from a low-tax state while employed by a company in a high-tax state, you may reduce your tax burden (consult a tax professional for your specific situation).
6. Utilize Commuter Benefits
Pre-tax commuter benefits (transit passes, parking) up to $315/month save you 25-40% on commuting costs by avoiding income and payroll taxes.
2024 Federal Tax Brackets
| Tax Rate | Single Filers | Married Filing Jointly |
|---|---|---|
| 10% | $0 - $11,600 | $0 - $23,200 |
| 12% | $11,601 - $47,150 | $23,201 - $94,300 |
| 22% | $47,151 - $100,525 | $94,301 - $201,050 |
| 24% | $100,526 - $191,950 | $201,051 - $383,900 |
| 32% | $191,951 - $243,725 | $383,901 - $487,450 |
| 35% | $243,726 - $609,350 | $487,451 - $731,200 |
| 37% | Over $609,350 | Over $731,200 |
Note: These are marginal tax rates. You only pay the higher rate on income within each bracket, not on your entire salary. Your effective tax rate is always lower than your top bracket.
Frequently Asked Questions
Why is my take-home pay so much less than my salary?
Your gross salary is reduced by federal income tax, state income tax (in most states), FICA taxes (Social Security 6.2% + Medicare 1.45%), and voluntary deductions (401k, health insurance, etc.). On average, Americans take home about 70-75% of gross pay. For example, a $75,000 salary might net $52,000-$56,000 after all deductions. The exact amount depends on your state, filing status, and benefit elections.
How much should I contribute to my 401(k)?
At minimum, contribute enough to get your full employer match—this is free money with an immediate 50-100% return. Ideally, contribute 10-15% of your salary for a comfortable retirement. The 2024 limit is $23,000 ($30,500 if 50+). If you can't afford 15%, start with the match and increase by 1% each year. Remember: 401(k) contributions are pre-tax, so a $500/month contribution only reduces your paycheck by $350-$400 (depending on your tax bracket).
Should I adjust my W-4 if I get large tax refunds?
Yes! A large refund means you overpaid taxes all year, essentially giving the IRS an interest-free loan. If you consistently get $3,000+ refunds, adjust your W-4 to claim more allowances. This increases your paycheck by $200-300/month, which you can invest, save, or use to pay down debt instead of waiting until April. Use the IRS W-4 calculator to find the right withholding amount.
What's the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions—your salary divided by pay periods. Net pay (take-home pay) is what actually hits your bank account after taxes and deductions. For example, $75,000 annual salary = $6,250 gross monthly pay, but only ~$4,400 net pay after a 30% effective tax and deduction rate. Always budget based on net pay, not gross.
How do pay frequencies affect my paychecks?
Pay frequency determines paycheck size but not annual take-home. Weekly (52 checks) = smallest paychecks, monthly (12 checks) = largest paychecks, but total annual net pay is the same. Bi-weekly (26 checks) has two "extra" paychecks per year (months with 3 paychecks), which some people use for extra savings or debt payoff. Budget based on your regular paycheck count, treating extra paychecks as bonuses.
What are FICA taxes and why do I pay them?
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. You pay 7.65% of gross wages: 6.2% for Social Security (capped at $168,600 income in 2024) and 1.45% for Medicare (no cap, plus extra 0.9% over $200k). Your employer matches this 7.65%, so 15.3% total goes toward your future retirement and healthcare benefits. Think of it as forced retirement savings—you'll receive these benefits when you're 65+.
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