From salary to paycheck
Job offers and raises are quoted as gross annual salary, but your paycheck is noticeably smaller. Pre-tax retirement contributions, federal and state income tax and FICA all come out before you see a dollar. This calculator walks through each deduction and shows your take-home pay per paycheck, per month and per year, plus an approximate net hourly rate.
How the calculation works
- Pre-tax deductions: a traditional 401(k) or 403(b) contribution is taken out first. Salary × 401(k) %.
- Taxable wages: salary minus pre-tax deductions.
- Income tax: taxable wages × (federal effective rate + state rate).
- FICA: salary × 7.65% (6.2% Social Security + 1.45% Medicare). It applies to the full salary, including 401(k) deferrals.
- Take-home pay = salary − 401(k) − income tax − FICA, divided by the number of pay periods.
Using an effective federal rate keeps the calculator simple and accurate enough for budgeting. Your effective rate is your total federal income tax divided by your wages, and it is much lower than your top bracket because of the standard deduction and progressive brackets.
Worked example: $75,000 salary
A single employee earns $75,000, is paid biweekly, contributes 6% to a 401(k), and has a 10% federal effective rate and a 4.5% state rate.
- 401(k): 75,000 × 6% = $4,500.
- Taxable wages: $70,500.
- Income tax: 70,500 × 14.5% = $10,222.50.
- FICA: 75,000 × 7.65% = $5,737.50.
- Annual take-home: 75,000 − 4,500 − 10,222.50 − 5,737.50 = $54,540.
- Per biweekly paycheck: 54,540 ÷ 26 ≈ $2,097.69.
Take-home pay at different salaries
Same assumptions (6% 401(k), 10% federal, 4.5% state, biweekly):
| Gross salary | Per paycheck | Annual take-home | Total taxes |
|---|---|---|---|
| $40,000 | $1,118.77 | $29,088 | $8,512 |
| $60,000 | $1,678.15 | $43,632 | $12,768 |
| $75,000 | $2,097.69 | $54,540 | $15,960 |
| $100,000 | $2,796.92 | $72,720 | $21,280 |
| $150,000 | $4,195.38 | $109,080 | $31,920 |
In reality the federal effective rate rises with income, so adjust it for higher salaries: a single filer earning $150,000 typically pays an effective federal rate closer to 17–19%.
What else can appear on your pay stub
- health, dental and vision premiums, often pre-tax;
- HSA and FSA contributions, which also reduce FICA when made through payroll;
- local or city income tax, for example in New York City or many Ohio cities;
- the additional 0.9% Medicare tax on wages above $200,000.
Comparing job offers
Compare offers on annual take-home pay plus employer benefits, not on gross salary alone. A 401(k) match, cheaper health insurance or a state with no income tax can be worth several thousand dollars a year.