How your take-home pay is calculated
Your gross salary is reduced by several deductions before it reaches your bank account. This calculator estimates the biggest ones: pre-tax 401(k) contributions (which lower your taxable income), federal income tax using the current brackets and standard deduction, FICA — 6.2% Social Security up to the annual wage base plus 1.45% Medicare — and your state income tax.
Because state taxes vary so widely, we let you enter your own rate. Nine states — including Texas, Florida, Washington, Nevada and Tennessee — have no state income tax, so you'd enter 0%. Others range from a low flat rate to over 10% at the top. Your effective tax rate (shown above) is total tax divided by gross pay, which is almost always lower than your top bracket.
Ways to increase your take-home pay
- Contribute to a 401(k) or HSA to lower taxable income (though it reduces cash now, it builds tax-advantaged savings).
- Review your W-4 so you're not over-withholding and giving the IRS an interest-free loan.
- Claim all eligible pre-tax benefits your employer offers.
Paycheck FAQ
Why is my paycheck smaller than salary ÷ 26?
Taxes and pre-tax deductions come out first. This tool shows the after-tax amount you actually receive.
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Enter 0% for those.
Is this exact?
It's a close estimate. Local taxes, additional withholdings and credits can change the final number — check your pay stub or a tax professional.