Calculate your take-home pay from gross salary. Deducts federal, state, local taxes, FICA, and pre/post-tax deductions instantly.
Understanding the difference between gross pay and net pay is essential for every employee and employer. Gross pay is the total amount earned before any deductions, while net pay—commonly called take-home pay—is what actually lands in your bank account after federal income tax, state income tax, local taxes, FICA (Social Security and Medicare), and various pre-tax and post-tax deductions are subtracted.
This Gross to Net Pay Calculator lets you quickly estimate your net pay from any gross salary or hourly wage. Simply enter your gross earnings, filing status, allowances, and deduction amounts to see a detailed breakdown of every withholding. Whether you're evaluating a job offer, budgeting for monthly expenses, or running payroll projections, this tool provides the clarity you need.
Employers also benefit by using this calculator to verify payroll accuracy, compare compensation packages, and ensure compliance with federal and state withholding requirements. Knowing the exact cost of each deduction category helps both sides of the employment relationship plan more effectively.
Manually computing net pay involves navigating IRS tax tables, state withholding schedules, FICA thresholds, and multiple deduction types—a process that's tedious and error-prone. This calculator automates the entire workflow, giving you an instant snapshot of every deduction line item. Use it to compare job offers side by side, plan household budgets with confidence, or sanity-check your payroll system's output.
Net Pay = Gross Pay − Federal Tax − State Tax − Local Tax − Social Security (6.2%) − Medicare (1.45%) − Pre-Tax Deductions − Post-Tax Deductions
Result: $3,442.50/pay period
From $5,000 gross: federal tax $1,100, state tax $250, Social Security $310, Medicare $72.50, pre-tax deductions $375, post-tax deductions $50. Net pay = $5,000 − $1,100 − $250 − $310 − $72.50 − $375 − $50 = $2,842.50.
Every paycheck involves a cascade of deductions applied in a specific order. First, pre-tax deductions like 401(k) contributions and health insurance premiums are subtracted from gross pay to determine taxable wages. Federal income tax is then calculated on those taxable wages using IRS withholding tables based on your W-4 filing status.
Social Security tax is withheld at 6.2% on earnings up to the annual wage base ($168,600 for 2024). Medicare is withheld at 1.45% on all earnings, with an additional 0.9% surtax on earnings over $200,000 for single filers. These amounts fund retirement and healthcare benefits.
State income tax rules vary dramatically. Nine states impose no income tax, while others have progressive brackets similar to federal rates. Local taxes—such as city or county income taxes—add another layer. Always verify your jurisdiction's rates for accurate net pay projections.
To increase net pay without changing jobs, maximize pre-tax contributions to retirement accounts, elect high-deductible health plans with HSA contributions, and ensure your W-4 withholding allowances accurately reflect your situation to avoid over-withholding.
Gross pay is your total earnings before any deductions. Net pay is what you actually receive after federal, state, and local taxes, FICA contributions, and any voluntary deductions are subtracted. The difference can be 25–40% or more depending on your tax bracket and deductions.
FICA stands for the Federal Insurance Contributions Act and includes Social Security tax at 6.2% (up to the wage base limit) and Medicare tax at 1.45%. Together they total 7.65% of your gross pay. Employers pay an equal matching amount.
Pre-tax deductions reduce your taxable income, so you pay less in income tax now. Post-tax deductions (like Roth contributions) are taxed upfront but may be tax-free in retirement. The best choice depends on your current vs. expected future tax bracket.
The U.S. uses a progressive tax system with brackets ranging from 10% to 37%. Your effective rate depends on your filing status and taxable income. Use the IRS tax tables or Publication 15-T for exact withholding amounts.
This calculator applies a user-specified state tax rate. Since each state has different brackets, standard deductions, and rules, enter the rate that matches your state's withholding schedule for the most accurate result.
Recalculate whenever your gross pay changes (raise, bonus), you adjust deductions (new 401k contribution), your filing status changes, or tax law updates take effect. Reviewing quarterly is a good habit for budgeting.
Common post-tax deductions include Roth 401(k) or Roth IRA contributions, union dues, life insurance premiums above employer-paid limits, charitable contributions via payroll, and wage garnishments. Understanding this concept helps you make more informed decisions and avoid common pitfalls.
First paychecks may cover a partial pay period, have different tax withholding due to annualization methods, or include one-time deductions like uniform costs or sign-on bonus tax adjustments. Taking this into account leads to more reliable planning and reduces the risk of unexpected costs or issues.