Salary Calculator
The Salary Calculator helps you understand your take-home pay by calculating deductions from your gross salary. It factors in federal income tax, state income tax, Social Security, Medicare, and other deductions to show your net pay. This calculator is useful for job offer evaluation, budgeting, and understanding the impact of pre-tax deductions like 401(k) contributions and health insurance. Knowing your exact take-home pay helps you budget effectively and make informed financial decisions.
Formula
Take-Home Pay = Gross Salary − Federal Tax − State Tax − Social Security − Medicare − Other Deductions Social Security = 6.2% of salary (up to $168,600 cap in 2026) Medicare = 1.45% of salary (+ 0.9% if over $200,000) Federal Tax = Based on tax brackets and filing status
Example
For a $75,000 annual salary (single filer, 2026): Gross monthly = $6,250 Social Security = $6,250 × 6.2% = $387.50 Medicare = $6,250 × 1.45% = $90.63 Federal tax (approx) = $800/month State tax (varies, e.g., 5%) = $312.50 Take-home ≈ $6,250 − $387.50 − $90.63 − $800 − $312.50 = $4,659.37/month
How to Use
- Enter your gross annual or monthly salary
- Select your filing status (single, married, head of household)
- Enter any pre-tax deductions (401k, HSA, insurance)
- The calculator shows your federal tax, state tax, and FICA
- Review your net take-home pay per paycheck
Frequently Asked Questions
What is the difference between gross and net salary?
Gross salary is your total pay before deductions. Net (take-home) salary is what you actually receive after taxes, Social Security, Medicare, and other deductions are subtracted. Net pay is typically 65-75% of gross pay.
How do pre-tax deductions affect my paycheck?
Pre-tax deductions (401k, HSA, health insurance) reduce your taxable income, lowering your federal and state taxes. For example, contributing $500/month to 401(k) saves about $120/month in taxes (at 24% bracket).
What is FICA?
FICA (Federal Insurance Contributions Act) includes Social Security (6.2% up to $168,600 in 2026) and Medicare (1.45%, no cap). Your employer matches these amounts. Self-employed individuals pay both halves (15.3% total).
How do state taxes vary?
Nine US states have no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). California has the highest top rate (13.3%). State taxes can significantly impact your take-home pay.
Should I adjust my W-4 withholding?
If you get a large tax refund, you are over-withholding (giving the government a free loan). If you owe taxes at year-end, you are under-withholding. Aim for a small refund or small payment. Use the IRS Tax Withholding Estimator to adjust.