How to Use the Take-Home Pay Calculator
- Choose the tax year, then pick salary or hourly pay and enter your pay.
- Select your pay frequency and filing status.
- Enter your 401(k) percentage and pre-tax health insurance per paycheck.
- Enter your effective state and local income tax rates.
- Press Calculate and review where your pay goes.
Formula
Federal taxable income = gross − 401(k) − pre-tax insurance − standard deduction FICA wages = gross − pre-tax insurance Social Security = min(FICA wages, wage base) × 6.2% Medicare = FICA wages × 1.45% (+ 0.9% above threshold) State/local = (gross − 401(k) − insurance) × rate Net = gross − all of the above − after-tax deductions
Example Calculation
On an $85,000 salary paid every two weeks, with a 5% 401(k), $150 of pre-tax insurance per paycheck and 4% state tax, take-home pay is about $2,288 per paycheck, or $59,495 a year. Federal tax is about $8,077, Social Security $5,028 and Medicare $1,176.
What Is a Take-Home Pay Calculator?
It converts your gross salary or hourly wage into the amount that arrives in your bank account. Knowing that number is the foundation of any realistic budget.
What Gets Deducted From Your Paycheck
- Federal income tax: based on brackets, filing status and your W-4.
- Social Security and Medicare (FICA): flat rates, with Social Security capped at a yearly wage base.
- State and local taxes: vary by location; some states have none.
- Benefits and retirement: health premiums, 401(k) contributions and other deductions.
How to Increase Your Take-Home Pay
Adjusting your W-4 so you are not over-withholding can raise each paycheck, although it reduces your refund. Pre-tax contributions lower income tax but also lower the cash you receive. Compare options with the income tax calculator.
Tips
- Review your withholding after a marriage, new job or child.
- Check your pay stub against the estimate to catch errors.
- Build your budget on take-home pay with the budget calculator.
Common Mistakes
- Budgeting from gross pay.
- Forgetting that deductions change mid-year, such as when the Social Security wage base is reached.
- Using a marginal tax rate as an effective rate.
Estimates only; your actual paycheck depends on your employer’s withholding. See how to calculate your take-home pay.