What is the difference between gross and net pay?

Gross pay is your total earnings before deductions. Net pay (take-home) is what you actually receive after taxes, insurance, retirement contributions, and other deductions are withheld.

How much of my paycheck goes to taxes?

Federal income tax ranges from 10-37% based on income. Social Security is 6.2% (up to income limit). Medicare is 1.45%. State taxes vary from 0-13%. Total can be 25-40% for higher earners.

Why does my paycheck vary from pay period to pay period?

Variations occur from different hours worked, commission/bonus payments, changes in tax withholding, or benefits deductions that don't occur every period (like quarterly insurance).

How do I maximize my take-home pay?

Adjust W-4 withholdings appropriately (avoid large refunds), maximize pre-tax contributions (HSA, 401k), and ensure you're claiming all appropriate allowances.

What are pre-tax deductions?

Pre-tax deductions (401k, HSA, FSA, some insurance premiums) reduce your taxable income, lowering taxes owed. Post-tax deductions (Roth 401k, some insurance) don't reduce current taxes.

Should I withhold more or less for taxes?

Aim for minimal refund (you don't want to give the government an interest-free loan) but also avoid owing. Adjust W-4 if you consistently get large refunds or owe significant amounts.

How does getting a raise affect my take-home pay?

Raises increase gross pay, but higher income may move you into higher tax brackets for the additional income. Net increase is less than gross raise due to progressive taxation.

What's the best pay frequency for budgeting?

Biweekly creates two 'extra' paychecks annually. Semi-monthly is exactly twice per month. Weekly is easiest to budget but may have higher processing costs. Choose based on employer options.

Paycheck Calculator

Estimate take-home pay after taxes and deductions

Instant results•No signup•Estimates only

Gross Pay

Pay FrequencyBi-weekly

Federal Tax

State Tax

401(k)

Health Ins.

Net Pay (Take Home)

$2,849

Deductions

Federal Tax-$1,034

State Tax-$235

Social Security-$310

Medicare-$73

401(k)-$300

Health Insurance-$200

Annual Net

$74,061

Effective Rate

43.0%

Visualization

Monthly Payment Breakdown

Principal$700(70%)

Interest$300(30%)

Monthly Payment: $1,000

Results are estimates using current tax rates and standard deductions.

Results are estimates for informational purposes only and do not constitute tax advice. Actual tax liability may vary based on credits, deductions, and individual circumstances. Consult a tax professional for accurate filing.

How calculations work Full disclaimer

Paycheck Calculator Formula

Net = Gross - Taxes - Deductions

Your net (take-home) pay equals gross pay minus federal tax, state tax, Social Security (6.2%), Medicare (1.45%), and any pre-tax or post-tax deductions like retirement contributions, health insurance, and HSA.

How the Paycheck Calculator Works

1Enter your gross annual or per-paycheck salary
2Select your pay frequency (weekly, bi-weekly, monthly)
3Choose your filing status and allowances
4Enter your state for state tax estimation
5Input any pre-tax deductions (401k, health insurance)
6View your estimated net pay and tax breakdown

Paycheck Calculator Key Terms

Gross Pay: Your total earnings before any taxes or deductions are withheld.
Net Pay: Your take-home pay after all taxes and deductions are withheld—what actually hits your bank account.
FICA: Federal Insurance Contributions Act taxes, including Social Security (6.2%) and Medicare (1.45%), totaling 7.65%.
Pre-Tax Deductions: Contributions deducted before taxes (401k, HSA, health insurance), reducing your taxable income.

Paycheck Calculator Tips

•Pre-tax deductions (401k, HSA) reduce your tax burden
•Review your W-4 withholding to avoid large refunds or owing at tax time
•Budget based on net pay, not gross—gross is not what you actually receive
•Increasing 401k contribution reduces net pay but builds wealth tax-efficiently
•Understand your employer's benefit costs that come from your paycheck

When to Use This Paycheck Calculator

✓Estimating take-home pay from a job offer
✓Understanding your current paycheck deductions
✓Planning budget based on actual income received
✓Comparing net pay across different salary scenarios
✓Modeling the impact of changing deductions

Paycheck Calculator Examples

Single, No State Tax

Salary:$60,000State:TX401k:6%

Result:$1,846 biweekly

After federal tax, FICA, and 401(k), biweekly take-home is approximately $1,846.

Married, High Tax State

Salary:$85,000State:CABenefits:$200

Result:$2,410 biweekly

California taxes plus benefits reduce take-home to about $2,410 biweekly.

Entry Level Position

Salary:$42,000State:FL401k:3%

Result:$1,380 biweekly

Lower income and no state tax, take-home approximately $1,380 every two weeks.

Understanding Paycheck in Depth

Your paycheck stub tells an important story about where your gross earnings go before you see them. Understanding these deductions helps you make informed decisions about withholding, benefits, and budgeting.

Federal Income Tax

Federal tax uses progressive brackets—the more you earn, the higher the rate on additional income. But the rate only applies to income within each bracket, not all income. Your effective rate (total tax divided by total income) is always lower than your marginal bracket.

FICA Taxes

Social Security tax is 6.2% on income up to $160,200 (2023), with employers matching. Medicare is 1.45% with no cap, plus 0.9% additional on income over $200,000. These fund future Social Security and Medicare benefits.

State Income Tax

State taxes vary dramatically. Nine states have no income tax. Others range from 3% to over 13%. Some use flat rates; others have progressive brackets like federal. This significantly impacts take-home pay.

The Power of Pre-Tax Deductions

Every dollar contributed pre-tax to 401k, HSA, or health insurance avoids income tax and sometimes FICA. A $500 monthly 401k contribution might reduce take-home pay by only $350-400 while saving the full $500. This makes retirement saving more affordable than it appears.

Paycheck Calculator FAQs

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Marcus Chen

Financial Analysis Specialist

Marcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.

Content reviewed: January 2026Next review scheduled: 2027

Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.