Paycheck Calculator
Calculate your take-home pay after federal and state taxes, Social Security, and Medicare deductions.
Paycheck Formulas
Understanding Your Paycheck
Your paycheck is more than just a number—it's the result of your gross earnings minus various taxes and deductions. Understanding each component helps you plan your finances and optimize your take-home pay.
Our paycheck calculator breaks down federal and state taxes, FICA contributions, and voluntary deductions so you know exactly where your money goes.
Gross to Net
See exactly how much you take home from each paycheck.
Tax Breakdown
Understand federal, state, and FICA taxes.
Deduction Tracking
Factor in 401(k), health insurance, and more.
Any Pay Frequency
Calculate weekly, bi-weekly, or monthly pay.
What's Deducted from Your Paycheck
Several mandatory and voluntary deductions reduce your gross pay to your take-home amount.
Federal Income Tax
Withheld based on your income, filing status, and W-4 allowances. Uses progressive tax brackets from 10% to 37%.
State Income Tax
Varies by state from 0% (Texas, Florida) to over 13% (California). Some states use flat rates, others progressive brackets.
Social Security
6.2% of gross pay up to $168,600 (2024). Your employer pays another 6.2%. Funds retirement and disability benefits.
Medicare
1.45% of all gross pay with no cap. Additional 0.9% on earnings over $200K. Funds healthcare for seniors.
2024 Federal Tax Brackets
Federal income tax uses progressive brackets—you pay higher rates only on income above each threshold.
| Tax Rate | Single Filer | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 - $11,600 | $0 - $23,200 | $0 - $16,550 |
| 12% | $11,601 - $47,150 | $23,201 - $94,300 | $16,551 - $63,100 |
| 22% | $47,151 - $100,525 | $94,301 - $201,050 | $63,101 - $100,500 |
| 24% | $100,526 - $191,950 | $201,051 - $383,900 | $100,501 - $191,950 |
| 32% | $191,951 - $243,725 | $383,901 - $487,450 | $191,951 - $243,700 |
| 35% | $243,726 - $609,350 | $487,451 - $731,200 | $243,701 - $609,350 |
| 37% | Over $609,350 | Over $731,200 | Over $609,350 |
Maximizing Your Take-Home Pay
While you can't avoid required taxes, strategic decisions can increase your net pay.
Maximize Pre-Tax Contributions
401(k) contributions reduce your taxable income dollar-for-dollar. Contributing $500/month to a 401(k) could save $100-150 in taxes while building retirement savings.
Use FSA/HSA Accounts
Flexible Spending and Health Savings Accounts let you pay medical expenses with pre-tax dollars. HSA contributions also reduce FICA taxes.
Commuter Benefits
Pre-tax transit and parking benefits can save hundreds per year if your employer offers them.
Optimize W-4 Withholding
If you get a large tax refund, you're over-withholding. Adjust your W-4 to keep more money in each paycheck instead of giving the IRS an interest-free loan.
Dependent Care FSA
If you have childcare expenses, a Dependent Care FSA lets you pay with pre-tax dollars up to $5,000 per year.
Review Annual Benefits
During open enrollment, review all benefit options. Sometimes a higher-deductible health plan with HSA results in higher take-home pay.
Understanding Your W-4
The W-4 form tells your employer how much federal tax to withhold from each paycheck. Getting it right ensures you don't owe at tax time or over-withhold.
Step 1: Filing Status
Choose single, married filing jointly, or head of household. This determines which tax brackets apply to your withholding.
Step 2: Multiple Jobs
If you or your spouse have multiple jobs, use the IRS withholding calculator or worksheet to avoid under-withholding.
Step 3: Dependents
Claim credits for qualifying children ($2,000 each) and other dependents ($500 each) to reduce withholding.
Step 4: Adjustments
Add other income (investments, side gigs) or claim additional deductions beyond the standard deduction to fine-tune withholding.
Frequently Asked Questions
Why is my take-home pay so much less than my salary?
Between federal income tax (10-37%), state income tax (0-13%), Social Security (6.2%), and Medicare (1.45%), plus any benefits deductions, total deductions typically range from 25-40% of gross pay depending on your income and location.
How do I know if I'm withholding the right amount?
Use the IRS Tax Withholding Estimator at irs.gov. If you owed a lot or got a big refund last year, your withholding needs adjustment. Ideally, you should owe or receive less than $500 at tax time.
Are 401(k) contributions worth the reduced paycheck?
Usually yes. 401(k) contributions reduce your taxable income, so you're not losing the full contribution amount from your paycheck. Plus, many employers match contributions—free money you shouldn't leave on the table.
Why do I pay Social Security if I might not get benefits?
Social Security is mandatory for most workers. While future benefits may be reduced, the program is unlikely to disappear entirely. Your contributions also provide disability and survivor benefits now.
How does overtime affect my taxes?
Overtime is taxed at your marginal rate, which may be higher than your average rate. A larger paycheck can push some income into a higher bracket. However, you always keep more after taxes when earning more.
Can I claim exempt from withholding?
Only if you had no tax liability last year and expect none this year. Most workers don't qualify. Claiming exempt incorrectly results in a large tax bill and possible penalties at filing time.
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