Salary Paycheck Calculator

Understanding your paycheck: where your money actually goes

If you have ever looked at your salary offer and then stared at your first paycheck wondering where a big chunk of it went, you are not alone. The gap between what you earn on paper (your gross pay) and what actually lands in your bank account (your net pay, or take-home pay) can be surprisingly large — often 20% to 35% of your salary disappears before you ever see it. This guide walks through exactly what comes out of your paycheck, why, and how to use the calculator above to plan your finances with confidence.

Gross pay vs. net pay

Your gross pay is your total earnings before any deductions. If your annual salary is $60,000 and you are paid twice a month, your gross pay per paycheck is $2,500. But that is not what you take home. After federal income tax, state income tax, Social Security, Medicare, and any deductions you have elected (like health insurance or a 401(k)), your net pay is what remains. The calculator above shows you both numbers so there are no surprises on payday.

The taxes that come out of every paycheck

There are several separate taxes withheld from a typical paycheck in the United States. Understanding each one helps you make sense of your pay stub:

Federal income tax

This is usually the largest single deduction. The United States uses a progressive tax system, which means different portions of your income are taxed at different rates — not your entire income at one rate. For 2026, the federal brackets range from 10% on the first portion of taxable income up to 37% on the highest earnings. A common misunderstanding is that moving into a higher bracket taxes all of your income at that higher rate. In reality, only the dollars within each bracket are taxed at that bracket's rate. The calculator applies these brackets automatically after subtracting the standard deduction.

Social Security tax

Social Security is withheld at a flat 6.2% of your wages, up to an annual wage cap (in 2026, wages above roughly $184,500 are not subject to additional Social Security tax). This funds retirement, disability, and survivor benefits. Your employer pays a matching 6.2% that you never see on your pay stub.

Medicare tax

Medicare is withheld at 1.45% of all your wages, with no cap. High earners pay an additional 0.9% Medicare surtax on income above $200,000. Together, Social Security and Medicare are often labeled FICA on your pay stub.

State income tax

State income tax varies enormously depending on where you live. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — do not tax earned wages at all, which meaningfully increases take-home pay. Other states use progressive brackets similar to the federal system, and a few use a flat rate. Some states also add mandatory payroll deductions such as State Disability Insurance (SDI) or Paid Family and Medical Leave (PFML). Select your state in the calculator to see how your state affects your net pay.

Pre-tax deductions that lower your taxable income

Not everything withheld from your paycheck is a tax. Many deductions are elective and actually work in your favor by reducing the income you are taxed on:

• 401(k) or 403(b) contributions — money you set aside for retirement before income tax is calculated. This lowers your taxable income today, though the money is still subject to Social Security and Medicare.
• Health, dental, and vision insurance premiums — when paid pre-tax through your employer, these reduce both your income tax and your FICA taxes.
• Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions — pre-tax dollars set aside for medical or dependent-care expenses.

Because these come out before taxes are calculated, contributing to them can lower your tax bill. The calculator above lets you enter these deductions so you can see their real effect on your take-home pay — and experiment with, for example, how increasing your 401(k) contribution changes what you actually keep.

Hourly, overtime, and salaried pay

If you are paid hourly, your gross pay depends on how many hours you work, and overtime can make a real difference. Under federal law, non-exempt employees generally earn 1.5× their regular rate for hours worked beyond 40 in a week ("time and a half"), and some employers pay 2× ("double time") for holidays or extended shifts. The calculator supports multiple overtime lines so you can model a paycheck that mixes regular hours, time-and-a-half, and double-time accurately. Salaried employees can simply enter their annual salary and pay frequency.

How to use this calculator to plan your finances

Beyond simple curiosity, knowing your true take-home pay is the foundation of any budget. Here are a few practical ways to use the tool:

• Budgeting: Base your monthly budget on your net pay, not your gross salary. Budgeting off gross income is one of the most common reasons people come up short at the end of the month.
• Comparing job offers: A higher salary in a state with high income tax can sometimes leave you with less than a lower salary in a no-income-tax state. Run both scenarios to compare real take-home pay.
• Adjusting withholdings: If you consistently get a large tax refund or owe money each year, understanding your paycheck breakdown can help you adjust your W-4.
• Retirement planning: See how contributing more to your 401(k) affects your paycheck today, so you can find a contribution level that fits your budget.

A note on accuracy

This calculator provides a close estimate based on 2026 federal tax brackets, the standard deduction, and published state rates. Your actual paycheck may differ slightly due to local (city or county) taxes, additional voluntary withholdings, employer-specific benefits, wage garnishments, or the specific elections on your W-4 form. It is designed as a planning and educational tool, not as formal tax advice. For questions specific to your situation, consult a qualified tax professional or accountant.