How to Calculate Your US Take-Home Pay
Your take-home pay — also called net pay — is the amount deposited into your bank account after all mandatory and voluntary deductions are subtracted from your gross wages. For most US W-2 employees, this means subtracting federal income tax (based on 2025 IRS brackets and your W-4 withholding), Social Security tax (6.2% up to the 2025 wage base of $176,100), Medicare tax (1.45% on all wages; an additional 0.9% applies above $200,000 for single filers under the Affordable Care Act), and any applicable state income tax. Pre-tax deductions such as traditional 401(k) contributions, employer-sponsored health insurance premiums, and Health Savings Account (HSA) contributions reduce your FICA-taxable wages in some cases and always reduce your federal and state income tax base, making them extraordinarily efficient from a tax perspective.
Enter your gross annual salary, filing status, and state tax rate (9 US states have zero income tax: Texas, Florida, Nevada, Washington, South Dakota, Wyoming, Tennessee, Alaska, and New Hampshire — enter 0% if you reside in these states). Add any pre-tax benefit deductions. The tool computes your annual, monthly, biweekly (26 pay periods/year), and weekly take-home pay in real time. The waterfall breakdown shows exactly where each dollar of your gross pay goes before reaching your bank account, making it easy to identify which deductions have the greatest impact and where optimization opportunities exist — such as maximizing pre-tax 401(k) contributions to simultaneously reduce your taxable income and build retirement savings.
Note that this calculator estimates taxes based on standard deductions and flat state rates. Actual W-2 withholding depends on your IRS Form W-4 elections, which you submit to your employer. The W-4 was redesigned in 2020 and no longer uses allowances. If your estimated tax liability differs significantly from what's withheld on your pay stub, you can update your W-4 with your employer's HR department at any time to prevent underpayment penalties or unnecessary overwithholding (an interest-free loan to the IRS). All calculations run locally in your browser — no financial data is stored or transmitted.
Frequently Asked Questions
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. Employees pay 6.2% for Social Security (on wages up to $176,100 in 2025) and 1.45% for Medicare (no wage cap) — totaling 7.65%. Employers match this 7.65% on their end. Self-employed individuals pay both halves as the self-employment tax (15.3%) but can deduct half of this on their federal return. FICA taxes appear as separate line items on every pay stub.
Your W-4 tells your employer how much federal income tax to withhold from each paycheck. An accurate W-4 means your withholding closely matches your actual tax liability — minimizing both a large refund (an interest-free loan to the IRS) and an underpayment penalty. The IRS Tax Withholding Estimator tool at IRS.gov can help you determine the correct W-4 settings based on your full income picture, especially if you have multiple jobs, significant investment income, or major life changes like marriage or a new dependent.
This tool estimates taxes using standard deduction assumptions and flat state rates. Your actual paycheck may differ due to: W-4 withholding elections (extra withholding or claims), local/city income taxes (NYC, Philadelphia, Detroit, etc.), employer-specific benefits (dental/vision premiums, FSA contributions, life insurance, parking), garnishments, or union dues. Use this calculator for planning purposes and your actual pay stub for precise figures.