Salary & Paycheck Calculator

Understanding Your Paycheck

Your paycheck reflects more than just your hourly wage or salary. Gross pay is your total earnings before deductions, while net pay (take-home pay) is what you actually receive after all taxes and deductions are withheld.

Federal Income Tax: Withheld based on your W-4 information, filing status, and income level.

State Income Tax: Varies by state - some states have no income tax, while others have progressive rates.

Social Security: 6.2% of wages up to the annual wage base limit, matched by employers.

Medicare: 1.45% of wages, with an additional 0.9% for high earners.

Other Common Deductions

Additional deductions may include retirement contributions (401(k), 403(b)), health insurance premiums, dental/vision insurance, HSA/FSA contributions, life insurance, and garnishments. Many of these are pre-tax deductions, which can reduce your taxable income.

Budgeting With Your Take-Home Pay

For budgeting purposes, always use your net (take-home) pay rather than gross pay. Create a budget that accounts for your actual cash flow after all deductions. Consider using the 50/30/20 rule or other budgeting strategies based on your net income.

Important Notes

Worked Example: A $2,000 Paycheck

Suppose your gross pay is $2,000 per pay period. Your federal withholding is 12%, your state withholding is 4%, Social Security is 6.2%, Medicare is 1.45%, and you have $50 in other deductions such as health insurance. In the calculator above, enter 2000 as the gross pay and fill in those percentages and the $50 deduction.

Federal withholding is $240, state withholding is $80, Social Security is $124, Medicare is about $29, and other deductions are $50. That adds up to about $523 in total deductions, which leaves a take-home pay of about $1,477. Try changing the withholding percentages to see how each one affects your net pay.

How Payroll Taxes Work

Social Security and Medicare taxes together are called FICA taxes. For 2026, the employee rate is 6.2% for Social Security on wages up to $184,500, plus 1.45% for Medicare on all wages. Employees earning more than $200,000 also pay an additional 0.9% Medicare tax on the amount above that threshold. Federal and state income tax withholding depend on your pay, filing status, and the information on your withholding forms.

Why Your Withholding May Differ

This calculator uses the percentages you enter. Actual withholding depends on your filing status, allowances, pre-tax deductions, and local taxes. Your pay stub shows the exact amounts your employer withholds.

Frequently Asked Questions

What is the difference between gross pay and net pay?

Gross pay is your total earnings before any deductions. Net pay, also called take-home pay, is what remains after taxes and other deductions are withheld.

Why is my paycheck smaller than I expected?

Common reasons include higher tax withholding, health insurance premiums, retirement contributions, and other deductions. Compare your pay stub line by line with your expectations.

Does pay frequency change my taxes?

Pay frequency changes how much is withheld per paycheck, but your total tax for the year depends on your annual income, not how often you are paid.

Are retirement contributions deducted before tax?

Traditional 401(k) contributions are generally taken before income tax, which lowers your taxable pay. Roth contributions are taken after tax. Check your plan details.

How Other Deductions Are Treated

In this estimate, the "Other Deductions" amount is subtracted after taxes are calculated. In real payroll, some deductions such as traditional 401(k) contributions are taken before income tax, which can lower your tax withholding.

Is this calculator exact?

No. It provides estimates for planning purposes. Your actual paycheck may differ, so check your pay stub or ask your payroll department.