How the paycheck calculator works
This paycheck calculator converts your annual gross salary into an estimated net (take-home) paycheck. It models the four things that shrink most American paychecks: federal income tax, FICA payroll taxes, state income tax, and your own payroll deductions.
The formulas
Federal tax = Σ (income in each bracket × bracket rate)
Social Security = 6.2% × min(FICA wages, $176,100)
Medicare = 1.45% × FICA wages (+0.9% above $200,000 single / $250,000 joint)
Net pay = Salary − pre-tax items − all taxes − after-tax deductions
Federal income tax is progressive: only the dollars inside each bracket are taxed at that bracket’s rate. That is why earning a raise never lowers your take-home pay, even if it pushes you into a higher bracket.
Step-by-step example
Scenario: $75,000 salary, single, paid biweekly, 5% to a traditional 401(k), $100 per paycheck in health premiums, 4% state tax.
- 401(k): $75,000 × 5% = $3,750. Health premiums: $100 × 26 = $2,600.
- Federal taxable income: $75,000 − $3,750 − $2,600 − $15,750 standard deduction = $52,900.
- Federal tax: 10% of $11,925 + 12% of $36,550 + 22% of $4,425 ≈ $6,552.
- Social Security: ($75,000 − $2,600) × 6.2% = $4,489. Medicare: $72,400 × 1.45% = $1,050.
- State tax: ($75,000 − $3,750 − $2,600) × 4% = $2,746.
- Net pay: $75,000 − $3,750 − $2,600 − $6,552 − $4,489 − $1,050 − $2,746 = $53,813 a year, or about $2,070 per biweekly paycheck.
Ways to increase your take-home pay
- Review your W-4 so you are not over-withholding all year.
- Use pre-tax benefits such as an HSA or FSA, which lower taxable income and, in many cases, FICA wages.
- Move savings into high-yield accounts so the money you do keep earns more.
Frequently asked questions
We start with your gross salary, subtract pre-tax deductions (401(k) and health premiums), then apply federal income tax using the 2025 progressive brackets and standard deduction for your filing status. Social Security (6.2%, up to the annual wage base) and Medicare (1.45%) are added, followed by your estimated state tax and any after-tax deductions.
Your employer withholds based on your W-4, local taxes, extra withholding, benefits such as dental or vision, wage garnishments and year-to-date earnings. This tool uses a standard deduction and a flat state tax rate, so treat it as a close estimate rather than a payroll-accurate figure.
Traditional 401(k) contributions reduce your federal and (usually) state taxable income, but they do not reduce Social Security or Medicare wages. Roth contributions are taxed up front, so enter 0% here if you contribute to a Roth.
Your marginal rate is the rate on your last dollar of taxable income. Your effective rate is total tax divided by gross income, which is always lower because lower slices of income are taxed at lower brackets.
Choose how often your employer pays you: weekly (52), biweekly (26), semi-monthly (24) or monthly (12). Annual taxes stay the same; only the per-paycheck amounts change. Biweekly workers receive two "extra" paychecks in some months.
Disclaimer: this calculator provides estimates for educational purposes only and is not financial, tax or legal advice. Consult a qualified professional before making financial decisions.