Paycheck Calculator

Take-home pay (net pay) is the exact amount deposited into an employee's bank account after all mandatory statutory taxes and voluntary benefit deductions are subtracted from gross earnings. The universal payroll formula follows a strict sequential waterfall:

1. Gross Earnings Calculation

For salaried employees, gross pay is your annual salary divided by your pay periods (52 weekly, 26 biweekly, 24 semimonthly, 12 monthly). For hourly workers, it is hourly rate multiplied by regular hours, plus 1.5x for overtime hours.

2. Pre-Tax Deductions (Taxable Base Reduction)

Traditional 401(k) contributions, Section 125 health insurance premiums, Health Savings Accounts (HSA), and FSAs come out before taxes, lowering your overall taxable gross income.

3. Mandatory Statutory Tax Withholding

Employers deduct three mandatory tax layers: Federal Income Tax (FIT) based on your Form W-4, Social Security (6.2% up to $184,500), Medicare (1.45% plus 0.9% surtax), and state/local income taxes.

4. Post-Tax Deductions & Final Net Pay

Roth 401(k) deferrals, union dues, and wage garnishments are subtracted last, leaving your final net take-home deposit.

Understanding each deduction on your pay stub ensures accurate withholding and prevents unexpected tax liabilities at year-end:

• Federal Income Tax Withholding: A progressive system with seven brackets from 10% to 37%. Figured using IRS Publication 15-T methods and your Form W-4 filing status.
• FICA (Social Security & Medicare): 6.2% Social Security on wages up to the $184,500 cap for 2026, plus 1.45% Medicare on all earnings (and 0.9% Additional Medicare on wages exceeding $200,000 for single filers).
• State & Local Income Taxes: Ranging from 0% in nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) to progressive brackets over 10% in high-tax states.

Federal tax and FICA are identical nationwide, so geographic variations in net pay come entirely from state income taxes and state payroll programs.

See each state page for its own breakdown, or read gross pay vs net pay.

Annual take-home pay remains virtually identical across pay schedules; what changes is the size of each deposit. On a $75,000 salary in Texas, weekly checks are smaller than biweekly checks, but the yearly total is unchanged.

Compare schedules: weekly (52), biweekly (26), monthly (12).

Deductions differ fundamentally in their tax timing:

• Pre-Tax Deductions: Subtracted before taxes. If you are in the 22% federal bracket, contributing $100 to a traditional 401(k) or HSA only reduces take-home pay by $78 because you save $22 in taxes immediately.
• Post-Tax Deductions: Subtracted after taxes (like Roth 401(k) or disability insurance). Your paycheck falls by the full $100, but qualified withdrawals in retirement are completely tax-free.

Bonuses and supplemental wages are typically withheld at a flat 22% federal rate upfront, though your actual tax liability reconciles at your marginal bracket when filing your return. Non-exempt hourly overtime is paid at 1.5x base rate under the FLSA. Learn more in how bonuses are withheld and the overtime paycheck calculator.

• Raise pre-tax contributions. Every $1,000 into a traditional 401(k), HSA or health FSA lowers taxable wages, so take-home falls by less than $1,000.
• Fix a large refund. If you get a refund every spring you are over-withholding. Update your W-4 so the money arrives in your paychecks instead.
• Claim credits you qualify for. Step 3 of the W-4 reduces withholding by $2,200 per qualifying child under 17.
• Check the second job. Two incomes without the W-4 Step 2 adjustment lead to under-withholding and a bill in April.
• Watch benefit elections in open enrollment. A cheaper health plan or a higher HSA election changes every paycheck.