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Paycheck Calculator

Estimate take-home pay after federal taxes, state taxes, and payroll deductions for hourly or salary income.

Your Pay Details

Annual Salary

Pay Frequency

Filing Status

W-4 Deductions

Annual Step 4(b) deductions beyond the standard deduction

State

Pre-Tax Deductions

401(k) Contribution

Percentage of gross pay

Health Insurance

Monthly premium (employee portion)

Understanding Your Paycheck: A Complete Guide

Whether you have just started a new job or are trying to plan your budget more carefully, understanding exactly how much money lands in your bank account each pay period is essential. Your gross salary and your net take-home pay are two very different numbers, and the gap between them can be surprisingly large once federal taxes, state taxes, FICA contributions, and pre-tax deductions are factored in.

How Federal Income Tax Is Calculated

The United States uses a progressive federal income tax system with seven brackets for the 2026 tax year. Your income is not taxed at a single flat rate. Instead, each portion of your earnings is taxed at the rate for that bracket. For example, a single filer earning $85,000 in taxable income pays 10% on the first $12,400, 12% on income from $12,400 to $50,400, and 22% on income from $50,400 to $85,000. The result is an effective tax rate well below the 22% marginal bracket.

FICA Taxes: Social Security and Medicare

Every W-2 employee pays FICA taxes, which fund Social Security and Medicare. The Social Security tax rate is 6.2% on earnings up to the annual wage base of $184,500 for 2026. Medicare is taxed at 1.45% on all earnings with no cap. If you earn more than $200,000 from an employer in a calendar year, that employer must withhold an additional 0.9% Medicare surtax on wages above that withholding threshold, regardless of filing status. Your final Additional Medicare Tax liability may differ when you file. Your employer matches the standard 6.2% Social Security and 1.45% Medicare amounts, but the additional Medicare surtax is paid only by the employee.

Pre-Tax Deductions Lower Your Tax Bill

Contributions to a traditional 401(k) plan and employer-sponsored health insurance premiums are typically deducted from your pay before income taxes are calculated. This reduces your taxable income and therefore your federal and state income tax liability. For example, contributing 6% of a $75,000 salary to a 401(k) removes $4,500 from your taxable income each year, saving hundreds of dollars in taxes depending on your bracket.

State Income Tax Variation

State income taxes vary dramatically across the country. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — impose no state income tax on wages. On the other end, California's top marginal rate reaches 13.3%, and Oregon's top rate is 9.9%. This calculator uses simplified effective rates for a quick estimate, but your actual state tax may differ based on local brackets, credits, and deductions specific to your state.

Pay Frequency Matters

The frequency of your paycheck affects the size of each payment but not your annual total. Weekly pay (52 checks) means smaller individual checks compared to monthly pay (12 checks). However, biweekly pay results in 26 checks per year, which means two months will have three paychecks instead of two — a helpful budgeting detail many people overlook. Semi-monthly pay gives exactly 24 checks, making it easy to align with monthly bills.

Tips for Maximizing Your Take-Home Pay

Review your W-4 withholding annually, especially after major life changes like marriage, having a child, or buying a home. Increasing your 401(k) contributions reduces taxable income while building retirement savings. If your employer offers a Health Savings Account (HSA), contributions are also pre-tax and can further reduce your tax liability. Finally, if you live near a state border, be aware that some states have reciprocal tax agreements that may affect your withholding.

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How to Use the Paycheck Calculator

1
Enter gross pay and pay frequency
Input your gross pay amount and select how often you are paid, such as weekly, biweekly, semi-monthly, or monthly.
2
Add federal and state withholding
Enter your W-4 filing status, annual Step 4(b) deductions, and state to estimate federal and state tax withholdings.
3
Include pre-tax deductions
Add any pre-tax deductions such as 401(k) contributions, health insurance premiums, or HSA contributions.
4
View your net pay
Review the final take-home pay amount along with a detailed breakdown of all taxes and deductions withheld from your paycheck.

Sources & Verification

Payroll rates verified against IRS Publication 15 and Department of Labor data

IRS Withholding Tables U.S. Department of Labor

Published by ConvertCrunch Editorial Team | Our Methodology

Frequently Asked Questions

What taxes are deducted from my paycheck?

Your paycheck is reduced by several mandatory deductions. Federal income tax is withheld based on your W-4 elections and filing status. Social Security tax is 6.2% of gross pay up to the annual wage base ($184,500 in 2026). Medicare tax is 1.45% on all earnings, plus an additional 0.9% on earnings over $200,000. State income tax rates vary by state, and some cities levy local income taxes. Pre-tax deductions for health insurance, 401(k), and HSA contributions further reduce taxable income.

How do I calculate my take-home pay?

Start with your gross pay (salary divided by pay periods, or hourly rate times hours worked). Subtract pre-tax deductions like 401(k) contributions and health insurance premiums. Apply federal income tax withholding using IRS tax tables based on your W-4 elections. Subtract Social Security (6.2%) and Medicare (1.45%) taxes. Subtract state income tax if applicable. Finally, subtract any post-tax deductions like Roth 401(k) contributions or wage garnishments to arrive at your net take-home pay.

What is the difference between gross pay and net pay?

Gross pay is your total compensation before any deductions -- your annual salary or hourly rate times hours worked. Net pay (take-home pay) is what you actually receive after all deductions. The gap between gross and net typically ranges from 25% to 40% for most workers, depending on tax bracket, state taxes, and benefit elections. Understanding this difference is essential for budgeting, since offers and salaries are always quoted as gross pay.

How does my W-4 affect my paycheck withholding?

Your W-4 form tells your employer how much federal income tax to withhold. Key factors include your filing status (single, married filing jointly, head of household), whether you have multiple jobs, dependent credits, and any additional withholding or deductions. Claiming more credits or deductions on your W-4 reduces withholding and increases take-home pay, but may result in owing taxes at filing time. Use the IRS Tax Withholding Estimator to fine-tune your W-4.

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