How take-home pay is calculated
Your take-home pay is your gross salary minus all mandatory deductions. This net pay calculator applies five layers of deductions in order:
- Pre-tax deductions — 401(k), HSA, health insurance premiums (reduce taxable income).
- Federal income tax — 2026 marginal brackets (10–37%) after standard deduction.
- State income tax — varies: 9 states charge 0%, others use flat or progressive rates.
- Social Security — 6.2% on the first $184,500 of wages.
- Medicare — 1.45% on all wages (+0.9% above $200K single / $250K married).
Take-Home Pay = Gross Salary − Federal Tax − State Tax − FICA − Pre-Tax Deductions
Tip: Select your state above to see how your state's income tax affects your paycheck after taxes. States like Florida and Texas have no income tax, giving you significantly higher take-home pay than states like California or New York.
What comes out of your paycheck
Federal Income Tax
10–37%
After standard deduction, using marginal brackets
State Income Tax
0–13.3%
Varies by state — 9 states have no income tax
Social Security
6.2%
On first $184,500 of wages (2026)
Medicare
1.45%+
On all wages, +0.9% above $200K/$250K
| Deduction | Rate | Applies To |
|---|---|---|
| Federal Income Tax | 10–37% | After standard deduction ($16,100 single) |
| State Income Tax | 0–13.3% | Varies by state (9 have no tax) |
| Social Security | 6.2% | First $184,500 (2026) |
| Medicare | 1.45%+ | All wages (+0.9% above $200K/$250K) |
How pre-tax deductions help
Pre-tax deductions like 401(k) and HSA contributions reduce your federal taxable income, meaning you pay less in taxes. They reduce your take-home pay by less than the dollar amount contributed:
Example: You earn $75,000 and contribute $6,000/year to a 401(k) in the 22% bracket.
Tax savings: $6,000 × 22% = $1,320 less in federal tax
Actual paycheck reduction: $6,000 − $1,320 = $4,680 (not the full $6,000)
Take-home pay examples by state
See how state taxes affect your take-home pay — comparing a no-tax state (Florida), a flat-tax state (Illinois 4.95%), and a high-tax state (California up to 13.3%):
| Gross Salary | FL (no tax) | IL (4.95%) | CA (progressive) |
|---|---|---|---|
| $40,000 | $34,320 | $32,481 | $33,356 |
| $50,000 | $42,355 | $40,021 | $40,820 |
| $60,000 | $50,390 | $47,561 | $48,206 |
| $75,000 | $61,593 | $58,021 | $58,179 |
| $100,000 | $79,180 | $74,371 | $73,441 |
| $125,000 | $96,704 | $90,657 | $88,640 |
| $150,000 | $113,791 | $106,507 | $103,402 |
Annual net pay, single filer, 1 exemption, no pre-tax deductions. Uses 2026 federal + state tax brackets.
How to increase your take-home pay
- Optimize your W-4: If you consistently get large tax refunds, you're over-withholding. Adjust your W-4 to keep more money in each paycheck.
- Use pre-tax accounts strategically: 401(k) and HSA contributions reduce taxable income. While they lower your paycheck, the tax savings mean more total compensation.
- Contribute to an FSA: Flexible Spending Accounts for healthcare or dependent care reduce taxable income and are funded pre-tax.
- Consider your state: If you're remote-eligible, working from a no-income-tax state (FL, TX, WA, etc.) can boost take-home pay by 4–10%+ depending on the state you'd otherwise be in.
- Check for tax credits: Credits like EITC, Child Tax Credit, and education credits directly reduce your tax owed (and increase take-home if reflected in withholding).
FAQs
What is take-home pay?
Take-home pay (also called net pay) is the amount of money you actually receive in your paycheck after all deductions — federal income tax, state income tax, Social Security, Medicare, and any pre-tax contributions (401k, HSA, etc.) — are subtracted from your gross salary. It's the money that hits your bank account.
What is the difference between gross pay and net pay?
Gross pay is your total salary before any deductions. Net pay (take-home pay) is what remains after federal tax, state tax, FICA (Social Security + Medicare), and pre-tax deductions are subtracted. For example, a $75,000 gross salary might yield approximately $57,000–$62,000 net depending on your state and filing status.
What deductions come out of my paycheck?
Five main categories: 1) Federal income tax (10–37% based on brackets and filing status). 2) State income tax (varies by state; 9 states have none). 3) Social Security (6.2% on first $184,500). 4) Medicare (1.45% on all wages, +0.9% above $200K). 5) Pre-tax deductions like 401(k), HSA, health insurance premiums, and FSA contributions.
How do I calculate my net pay?
Start with your gross annual salary. Subtract pre-tax deductions (401k, HSA). Apply the federal standard deduction, then calculate federal income tax using 2026 marginal brackets. Add state income tax (based on your state's rate), Social Security (6.2%), and Medicare (1.45%). Subtract all taxes and pre-tax deductions from gross to get net. Or just use the calculator above.
Does a 401(k) contribution reduce my take-home pay?
Yes and no. A traditional 401(k) contribution reduces your take-home pay, but by less than the contribution amount because it also reduces your federal taxable income. For example, contributing $500/month in the 22% bracket reduces your paycheck by about $390 (not $500) because you save $110 in federal taxes. The $500 still goes into your retirement account.
Which states have no income tax?
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. If you live in one of these states, your take-home pay is higher because there's no state tax deduction. Use the state dropdown above to compare how different states affect your net pay.
How does filing status affect take-home pay?
Filing status determines your standard deduction and tax bracket thresholds. Married filing jointly gets a $31,500 standard deduction (vs. $15,750 single) and wider bracket ranges, resulting in lower taxes and higher take-home pay at the same salary. Head of household falls between single and married at $23,625.
What is FICA tax?
FICA stands for Federal Insurance Contributions Act. It includes two taxes: Social Security (6.2% on the first $184,500 of wages for 2026) and Medicare (1.45% on all wages, plus an additional 0.9% on income above $200,000 for single filers). Your employer pays a matching amount. FICA totals 7.65% of your wages for most workers.
How do I read my pay stub?
Key sections: Gross pay (total earnings), Federal withholding (income tax), State withholding (state tax), Social Security (listed as OASDI or FICA-SS), Medicare (FICA-Med), pre-tax deductions (401k, health insurance), after-tax deductions, and Net pay (your take-home). Year-to-date (YTD) columns show cumulative totals. Compare your stub to this calculator's output to verify your employer's withholding.
Can I adjust my tax withholding to increase take-home pay?
Yes — by updating your W-4 form with your employer. If you're getting large tax refunds, you may be over-withholding. Claiming additional withholding allowances or adjusting the extra withholding amount on your W-4 can increase your per-paycheck take-home pay. Be careful not to under-withhold, which triggers penalties. Use this take-home pay calculator to estimate the right amount.
State-specific paycheck calculators
For a more detailed state-by-state breakdown with state exemptions and local tax info, use our dedicated calculators: