Paycheck Calculator – Estimate Your Take-Home Pay
Estimate your take-home pay after federal and state taxes, Social Security, and Medicare deductions from your gross salary. Free financial calculator.
Gross Pay vs Net Pay: What's the Difference?
Gross pay is your total earnings before any deductions — the number on your job offer or employment contract. Net pay ("take-home pay") is what actually hits your bank account after taxes and other withholdings.
The gap between gross and net depends on your tax situation, benefits, and deductions. For a typical US employee in 2024, net pay is roughly 65–80% of gross pay.
Example breakdown for a $4,000/month gross salary:
- Federal income tax (22% bracket): −$510
- Social Security (6.2%): −$248
- Medicare (1.45%): −$58
- State income tax (varies; ~5% estimate): −$200
- Health insurance premium (employee share): −$200
- Net take-home: ~$2,784 (69.6% of gross)
Federal Payroll Taxes: FICA
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. These are mandatory regardless of income level (up to the Social Security wage base):
| Tax | Employee rate | Employer rate | 2024 wage base |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $168,600 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% | 0% | Over $200,000 |
Self-employed individuals pay both the employee and employer portions (15.3% total for FICA), though half is deductible as a business expense.
Understanding Your Pay Stub
A pay stub typically shows:
- Earnings: Regular wages, overtime (1.5× rate for hours over 40/week under FLSA), bonuses, commissions
- Pre-tax deductions: 401(k) contributions (reduce taxable income), health insurance premiums under Section 125 cafeteria plans, HSA/FSA contributions
- Federal withholding: Based on your W-4 elections. "Married" or additional allowances reduce withholding.
- State/local taxes: Vary by state. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire (only on dividends), South Dakota, Tennessee, Texas, Washington, Wyoming.
- Post-tax deductions: Roth 401(k) (after-tax), garnishments, union dues
- Year-to-date (YTD) totals: Cumulative earnings and deductions for the tax year
Annualizing Your Hourly or Biweekly Pay
To compare compensation across different pay structures:
- Hourly to annual: Hourly rate × 2,080 hours (52 weeks × 40 hours). $25/hr × 2,080 = $52,000/year
- Biweekly to annual: Biweekly check × 26. $2,000 × 26 = $52,000/year
- Semi-monthly to annual: Check × 24. $2,167 × 24 = $52,008/year
- Monthly to annual: Check × 12. $4,333 × 12 = $51,996/year
Note: Biweekly employees receive 26 checks per year, meaning 2 months have 3 paychecks instead of 2 — a cash flow benefit to keep in mind for budgeting.
Frequently Asked Questions
How much federal tax is withheld from my paycheck?
Federal income tax withholding depends on your gross pay, filing status (single/married), and W-4 elections. For 2024, the standard withholding tables apply rates from 10% to 37%. Use the IRS Tax Withholding Estimator at irs.gov for a precise calculation based on your situation.
What is the difference between salaried and hourly pay?
Hourly employees are paid per hour worked and earn overtime (1.5× rate) for hours over 40 per week under FLSA. Salaried employees receive a fixed amount per pay period regardless of hours. Salaried workers classified as "exempt" don't receive overtime, but must earn at least $684/week ($35,568/year) to qualify for exemption.
What does a pre-tax 401(k) contribution do to my paycheck?
Pre-tax 401(k) contributions reduce your taxable income dollar-for-dollar. Contributing $500/month to a 401(k) reduces your federal taxable income by $6,000/year. In the 22% tax bracket, this saves $1,320 in federal taxes annually. Your actual paycheck reduction is $500 minus the tax savings — so your take-home only drops by roughly $390, not $500.
How is overtime calculated?
Under the Fair Labor Standards Act (FLSA), non-exempt hourly employees earn 1.5 times their regular hourly rate for each hour over 40 in a workweek. Some states (California, Nevada) have daily overtime rules (over 8 hours/day). Salaried exempt employees generally do not receive overtime regardless of hours worked.
What is a W-4 and how does it affect my paycheck?
A W-4 (Employee's Withholding Certificate) tells your employer how much federal income tax to withhold. Changes to the W-4 form in 2020 eliminated withholding allowances. You can now claim deductions and extra withholding more precisely. Filing a new W-4 after major life changes (marriage, new child, second job) ensures accurate withholding and avoids a large tax bill or unnecessary overpayment.
Understanding Your Paycheck Deductions
Your gross pay is your salary before any deductions. Your net pay (take-home) is what remains after federal income tax, Social Security, Medicare (FICA), and state taxes are withheld. The gap between gross and net typically ranges from 20–35% depending on income and state.
| Deduction | Rate (2025) | Notes |
|---|---|---|
| Federal income tax | 10–37% | Marginal brackets; effective rate lower |
| Social Security | 6.2% | Up to wage base (,100 in 2025) |
| Medicare | 1.45% | No wage cap; +0.9% above K |
| State income tax | 0–13.3% | Nine states have no income tax |
| 401(k) contribution | Up to ,500 | Pre-tax, reduces taxable income |
Pre-tax benefits like 401(k), FSA, and health insurance premiums reduce your taxable income, lowering your federal and state tax withholding. Maximizing pre-tax contributions is one of the most tax-efficient strategies available to employees. A worker in the 22% federal bracket who contributes ,000/year to a 401(k) saves ,320 in federal taxes alone.
What is the difference between gross and net pay?
Gross pay is your total earnings before deductions. Net pay is what you receive after federal tax, FICA (Social Security + Medicare), state tax, and any voluntary deductions like 401(k) or health insurance.
How is federal withholding calculated?
The IRS uses the W-4 form and tax bracket tables. For 2025, brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Withholding is estimated based on your income and W-4 allowances; actual tax is reconciled at filing.
Why does my paycheck change when I adjust my W-4?
The W-4 tells your employer how much to withhold. More allowances = less withholding = larger paychecks but potentially a tax bill in April. Fewer allowances = more withholding = larger refund but less take-home.