Take-home pay is what remains of your gross pay after taxes and deductions. Here is the sequence.
1. Start with gross pay
Annual salary divided by the number of paychecks, or hourly rate times hours worked. Convert between periods with the salary calculator.
2. Subtract pre-tax deductions
Traditional 401(k) contributions, health insurance premiums and HSA contributions reduce the income on which federal tax is based. Some, such as cafeteria-plan premiums, also reduce FICA wages.
3. Federal income tax
Subtract the standard deduction, then apply the progressive brackets for your filing status. The income tax calculator shows the bracket math.
4. Social Security and Medicare
Social Security tax is a flat percentage up to a yearly wage base. Medicare is a flat percentage with an additional tax at higher incomes.
5. State and local taxes
These vary widely, and some states have none.
6. After-tax deductions
Roth contributions, union dues or garnishments come out last.
Put it together
The take-home pay calculator runs every step and shows how much goes where. Remember it is an estimate; your employer’s withholding, your W-4 choices and bonuses affect the actual amounts.