How the salary calculator works
This annual salary calculator computes your total gross compensation (base + bonus + overtime), then applies all payroll deductions to show your net salary:
- Total gross: Base salary + annual bonus/commission + overtime pay
- Federal income tax: 2026 brackets after standard deduction
- State income tax: Based on your selected state (9 states have no tax)
- Social Security: 6.2% on first $184,500
- Medicare: 1.45% on all wages (+0.9% above $200K)
Tip: Use the state dropdown to compare your salary after tax across different states. For example, use this salary calculator for Texas to see how no state income tax boosts your take-home by 5–10% compared to high-tax states.
Gross vs. net salary
Gross salary
Gross annual pay (also called gross pay) is your total earnings before any taxes or deductions are taken out. Includes base pay, bonuses, commissions, and overtime. This is the number in your offer letter.
Net salary
What you actually receive after federal tax, state tax, Social Security, Medicare, and pre-tax deductions. Typically 65–80% of gross depending on your bracket and state.
Salary by pay period
How common annual salaries break down by period (gross, before taxes):
| Annual | Hourly | Weekly | Bi-weekly |
|---|---|---|---|
| $50,000 | $24.04 | $962 | $1,923 |
| $75,000 | $36.06 | $1,442 | $2,885 |
| $100,000 | $48.08 | $1,923 | $3,846 |
| $125,000 | $60.10 | $2,404 | $4,808 |
| $150,000 | $72.12 | $2,885 | $5,769 |
Overtime calculation
Under the FLSA, non-exempt employees earn 1.5× their regular hourly rate for hours over 40/week. This overtime calculator computes it as:
OT Pay = OT hours/week × 52 × (Salary ÷ 2,080) × Multiplier
As of 2026, the minimum salary for FLSA exempt status is $58,656/year. Employees earning below this threshold are entitled to overtime regardless of job duties.
How bonuses are taxed
Bonuses are classified as "supplemental wages" by the IRS. Employers can withhold at a flat 22% rate (or 37% for amounts over $1M). At tax time, your bonus is combined with regular income and taxed at your actual marginal rate.
Tip: If your bonus pushes you into a higher bracket, consider increasing your 401(k) contribution that pay period to offset the tax impact and build retirement savings simultaneously.
Salary increase calculator
Wondering how a pay raise affects your take-home? Run the calculator twice — once with your current salary, once with the new amount. The difference in net pay is your actual raise after taxes. A $5,000 raise in the 22% bracket yields about $3,500–$3,900 more take-home depending on your state.
To calculate salary increase percentage: ((New − Old) ÷ Old) × 100. Use our percentage calculator for quick math.
FAQs
What is gross salary?
Gross salary is your total compensation before any deductions — including base pay, bonuses, commissions, and overtime. It's the number on your job offer letter. Net salary (take-home pay) is what remains after federal income tax, state tax, Social Security, Medicare, and pre-tax contributions are deducted.
How do you calculate net salary?
Start with gross salary. Subtract pre-tax deductions (401k, HSA). Apply the federal standard deduction, then calculate federal income tax using 2026 brackets. Add state income tax, Social Security (6.2% up to $184,500), and Medicare (1.45%). Net salary = gross − all taxes and deductions. This salary calculator does all of this automatically.
How is overtime calculated?
Under the FLSA, non-exempt employees earn 1.5× their regular hourly rate for hours worked over 40 per week. Your regular rate = annual salary ÷ 2,080 hours. So if you earn $60,000/year ($28.85/hr), overtime pays $43.27/hr. 5 hours of OT per week = 5 × 52 × $43.27 = $11,250/year extra gross pay.
Are bonuses taxed differently than regular salary?
Bonuses are taxed as supplemental wages. Employers can withhold at a flat 22% federal rate (or 37% for amounts over $1 million) instead of using your regular tax brackets. However, at tax filing time, bonuses are combined with your other income and taxed at your actual marginal rate. The withholding is just an estimate — you may get a refund or owe more.
How does a pay raise affect my take-home pay?
A raise increases your take-home pay by less than the full raise amount because of progressive taxation. A $5,000 raise in the 22% federal bracket means roughly $3,900 more take-home after federal tax, but even less after state tax and FICA. Use this salary calculator to compare your current vs. proposed salary to see the exact difference.
What is a good salary in the US?
The median household income in the US is approximately $80,000 (2024). A 'good' salary depends heavily on location. $75,000 goes much further in Oklahoma City than in San Francisco. Generally, earning above your area's median while keeping housing costs under 30% of gross income is a solid benchmark.
Is salary or hourly pay better?
Salary offers income predictability, benefits (health insurance, 401k, PTO), and career advancement. Hourly pay offers overtime compensation, clearer work/life boundaries, and pay for every hour worked. Salaried workers who consistently work 50+ hours may earn less per hour than their hourly counterparts. Use the salary calculator alongside our salary-to-hourly converter to compare.
How do you negotiate a higher salary?
Research market rates (Glassdoor, Levels.fyi, BLS data), quantify your value with specific achievements and metrics, time the ask after a success or during review season, present a specific number (not a range), and be willing to negotiate on total compensation (signing bonus, equity, PTO, remote work) if base salary is firm.
What is the average US salary?
The average (mean) annual wage in the US is approximately $65,000 (BLS, 2024). However, the median is lower at around $56,000 because high earners skew the average upward. Salaries vary widely by occupation, education, experience, and geography — tech workers in San Francisco average well above $100K, while retail workers nationally average around $35K.
How does my state affect my salary?
Your state determines your state income tax rate, which directly reduces take-home pay. Nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) have no state income tax. For example, a salary calculator Texas shows zero state tax, while California takes up to 13.3%. Moving from California to Texas on a $100K salary could save over $5,000 in annual state taxes. Use the state dropdown above to compare.
What is the minimum salary for exempt employees in 2026?
As of 2026, the FLSA minimum salary threshold for exempt (salaried, not eligible for overtime) employees is $58,656 per year ($1,128/week). Employees earning below this threshold must be classified as non-exempt and are entitled to overtime pay regardless of job duties. This threshold was increased by the DOL in 2024.
Is overtime taxed differently?
No — overtime is taxed at the same income tax rates as regular pay. It may feel like overtime is taxed more because the extra income can push part of your earnings into a higher marginal bracket, but the higher rate applies only to the amount in that bracket, not your entire income. Your employer may also withhold at a higher rate on supplemental wages, but this is trued up when you file your annual return.
How do you calculate salary increase percentage?
Salary increase % = ((New Salary − Old Salary) ÷ Old Salary) × 100. For example, going from $60,000 to $65,000: ((65,000 − 60,000) ÷ 60,000) × 100 = 8.3% raise. A typical annual raise is 3–5%, while a promotion-related increase is often 10–20%. Use our percentage calculator for quick computations.