💵 Take-Home Pay Calculator
What actually lands in your account. This applies the 2025 US federal brackets, Social Security and Medicare, your pre-tax retirement contributions and any state tax, then divides by your pay frequency.
Where a US salary goes between gross and the bank
Gross pay is the number in the offer letter. Take-home pay is what arrives. Between them sit federal income tax, Social Security, Medicare, your own retirement contributions, insurance premiums and, in most states, state income tax. For a typical middle income the gap is 20% to 35%.
The order deductions are applied
- Pre-tax deductions come off first: 401(k), HSA, FSA and most health premiums. These reduce the income that gets taxed.
- FICA is calculated on wages minus Section 125 health deductions, but not minus your 401(k). Retirement contributions escape income tax, not payroll tax.
- Federal income tax applies to wages minus pre-tax deductions minus the standard or itemised deduction, through the bracket table.
- State and local tax follows its own rules, which usually but not always mirror the federal treatment.
- Post-tax deductions such as Roth contributions and some insurance come out last.
The 401(k) point surprises people. Contributing reduces income tax immediately but never reduces Social Security or Medicare, which is why a 6% contribution does not reduce your paycheck by the full 6% of gross and does not reduce it by only the after-tax amount either.
FICA in 2025
| Tax | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to the $176,100 wage base |
| Medicare | 1.45% | All wages, no cap |
| Additional Medicare | 0.9% | Wages above $200,000 single, $250,000 joint |
Your employer pays a matching 6.2% and 1.45%, which does not appear on your payslip but is part of what you cost. Self-employed people pay both halves, 15.3%, which is the single largest shock in the first year of freelancing.
A $78,000 salary, single filer
| Item | Amount |
|---|---|
| Gross salary | $78,000 |
| 401(k) contribution at 6% | −$4,680 |
| Pre-tax health premiums | −$2,400 |
| Federal income tax | −$7,051 |
| Social Security | −$4,687 |
| Medicare | −$1,096 |
| Net annual pay | $58,086 |
That is 74.5% of gross reaching the bank, or $2,234 per biweekly paycheck. Counting the 401(k) as money you still own, you are keeping 80.5% of what you earn, which is the more useful way to think about it.
States without income tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming levy no state income tax on wages. The saving is real and routinely overstated, because those states tend to recover revenue through property and sales taxes. Compare total tax burden and cost of living, not the income tax line alone.
Why your paycheck never matches exactly
Withholding is an estimate your employer makes from your W-4, annualising each pay period as if the whole year looked like it. Bonuses are often withheld at a flat 22% supplemental rate regardless of your actual bracket. Both are why refunds and balances exist, and why a large refund is an interest-free loan to the government rather than a windfall.
Most people arrive here on the way to something else, so it is worth knowing the income tax calculator, which handles the next part, and the salary calculator, which covers the case just beyond.
Frequently Asked Questions (FAQs)
Why is my paycheck so much smaller than my salary divided by 26?
Because federal income tax, Social Security at 6.2%, Medicare at 1.45%, any state tax and your own retirement and insurance contributions all come out first. For a typical middle income, 20% to 35% of gross disappears before the money reaches you.
Does a 401(k) contribution reduce my taxes?
It reduces federal and usually state income tax, but not Social Security or Medicare, which are charged on wages before retirement contributions. Contributing $5,000 while in the 22% bracket saves about $1,100 of income tax and nothing in payroll tax.
What is the difference between gross and net pay?
Gross is the full salary before anything is taken out. Net, or take-home, is what lands in your account. When comparing job offers, compare total compensation including the employer retirement match and insurance value, not just gross salary.
Why was my bonus taxed so heavily?
It was withheld, not taxed, at the flat 22% supplemental rate used for bonuses up to $1 million. If your actual marginal rate is lower, the excess comes back as a refund. If it is higher, you may owe more at filing.
Should I change my W-4 to get a bigger paycheck?
If you consistently receive a large refund, yes. A refund means you overpaid all year and lent the money interest-free. Adjusting the W-4 moves that money into each paycheck instead, which is better unless you rely on the refund as forced saving.
Does this calculator include state tax?
Only as a flat percentage you enter, because state systems vary enormously: some are flat, some progressive, some have local add-ons. Enter zero for the nine states with no wage income tax, or your approximate effective rate otherwise.