Salary Calculator £ Take-Home Pay
See your real take-home pay after federal income tax, Social Security, Medicare, and state tax. Enter your gross salary and filing details to get your net pay per paycheck and annually.
How Your Salary Is Taxed
Your gross salary passes through several layers of taxation before it reaches your bank account. Understanding each layer helps you plan better and avoid surprises on payday.
Federal income tax is progressive — you pay 10% on the first $11,600 of taxable income (single filer, 2024), 12% on income from $11,601 to $47,150, 22% on income up to $100,525, and so on up to 37% on income over $609,350. This means a $75,000 salary is never all taxed at 22% — only the slice above $47,150 reaches that bracket.
FICA taxes (Federal Insurance Contributions Act) are flat-rate: Social Security is 6.2% on wages up to $168,600 (2024 wage base), and Medicare is 1.45% on all wages. If you earn over $200,000, an additional 0.9% Medicare surtax applies. Your employer matches both rates, but those employer contributions don't show on your paycheck.
State income tax varies enormously. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no broad-based income tax. States like California and New Jersey can add another 6–10% to your bill. This calculator lets you enter your state rate manually; use our full Income Tax Calculator for state-specific brackets.
Understanding Your Paycheck Deductions
The gap between gross and net pay often surprises first-time earners. Beyond taxes, many employers automatically deduct contributions that appear before or after taxes are calculated.
Pre-tax deductions reduce your taxable gross before federal and state taxes are applied. Your 401(k) traditional contribution is the biggest lever — contributing $10,000 to your 401(k) doesn't just save $10,000; it reduces your federal tax bill by $10,000 × your marginal rate (e.g., $2,200 if you're in the 22% bracket). Other pre-tax deductions include HSA contributions, FSA contributions, and most employer-sponsored health insurance premiums.
After-tax deductions — like Roth 401(k) contributions, union dues, or wage garnishments — come out of your net pay and don't reduce taxable income. They still affect your take-home amount, so enter them in the "Other After-Tax Deductions" field to see your actual pocket money.
Your pay frequency (weekly, bi-weekly, semi-monthly, monthly) doesn't change your annual tax bill, but it does affect each paycheck amount and how quickly you hit FICA wage bases. Bi-weekly (26 paychecks) is the most common schedule in the US.
How to Maximize Your Take-Home Pay
Several legal strategies can meaningfully increase your net pay without requiring a raise:
Maximize pre-tax retirement contributions. The 2026 401(k) limit is $23,500 ($31,000 if you're 50 or older). Every dollar contributed pre-tax reduces your taxable income and thus your federal and state tax. A $23,500 contribution saves roughly $5,170 in federal taxes alone if you're in the 22% bracket.
Use an HSA if you have a high-deductible health plan. HSA contributions are triple-tax advantaged: pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses. The 2026 contribution limit is $4,300 for individuals and $8,550 for families.
Claim the correct withholding on your W-4. If you consistently get a large federal refund, you're giving the government an interest-free loan. Adjusting your W-4 to reduce over-withholding puts money in each paycheck instead. Conversely, if you owe taxes each April, increase your withholding to avoid underpayment penalties.
Check your state's specific deductions. Some states offer additional deductions for retirement contributions, student loan interest, or dependent care that aren't reflected in federal rules. A few states (like Pennsylvania) have a flat tax with very few deductions, so pre-tax strategies matter less there.
Salary vs. Hourly: Which Is Better?
Salaried positions typically receive the same paycheck regardless of hours worked, while hourly workers are paid for each hour and are generally entitled to overtime (1.5× rate) for hours over 40 per week under the Fair Labor Standards Act (FLSA).
To compare a salaried offer to an hourly one, divide the annual salary by the hours you actually expect to work. A $70,000 salary sounds better than $32/hour — but if the salaried role routinely demands 55 hours/week, your effective hourly rate drops to $24.48 (70,000 ÷ 2,860 hours), while the $32/hour job would earn $79,040 with overtime.
Benefits also factor in. Salaried roles more often include health insurance, paid time off, and 401(k) matching — benefits worth an additional 25–40% of base salary on average, according to the Bureau of Labor Statistics. Always evaluate total compensation, not just base pay.
Frequently Asked Questions
What is the difference between gross and net salary?
Gross salary is your total earnings before any deductions — what your employer agreed to pay you. Net salary (take-home pay) is what remains after federal income tax, FICA (Social Security and Medicare), state income tax, and any other deductions are subtracted. For most US workers, net pay is 65–80% of gross pay, depending on income level, state of residence, and benefit elections.
How much Social Security tax do I pay?
You pay 6.2% of your gross wages into Social Security, up to the annual wage base limit ($168,600 in 2024). Once your earnings exceed that cap for the year, Social Security tax stops being withheld. Your employer pays a matching 6.2%, and self-employed workers pay the full 12.4% as self-employment tax (though they can deduct half on their federal return).
Does getting a raise push all my income into a higher bracket?
No — this is the most common tax misconception. The US uses a marginal (progressive) tax system, so only the dollars above each bracket threshold are taxed at the higher rate. If you're single and earn $47,000, a $5,000 raise puts you into the 22% bracket for only $1,850 of the raise (the amount over $47,150). The rest is still taxed at 12%. Your total tax bill rises, but your after-tax raise is still positive.
What states have no income tax?
As of 2024, nine states impose no broad-based income tax on wages: Alaska, Florida, Nevada, New Hampshire (only taxes investment income, not wages), South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these states, enter 0% in the State Income Tax Rate field. Note that some of these states offset lost revenue with higher sales taxes or property taxes.
How do I calculate my effective tax rate?
Your effective tax rate is your total tax paid divided by your total gross income. For example, if you earn $80,000 and pay $12,000 in federal taxes, your effective federal rate is 15% — even though some of your income was taxed at the 22% marginal rate. This calculator shows your effective rate in the results panel, which is the most useful single figure for comparing tax burdens across different income levels or years.
