Salary / Take-Home Pay Calculator

How Is Take-Home Pay Calculated?

Your gross salary is what your employer agrees to pay you, but your take-home pay (net pay) is what actually lands in your bank account after deductions. In the US, federal income tax is calculated on a progressive bracket system — higher income is taxed at higher rates, but only the portion within each bracket. In addition, Social Security (6.2% up to the wage base) and Medicare (1.45%) are withheld from every paycheck. State income taxes vary widely and are not included in this calculator. Understanding your effective tax rate — total taxes divided by gross income — helps you make smarter decisions about raises, bonuses, and retirement contributions.