Paycheck Calculator - Free Net Pay Calculator with Federal Tax, State Tax, and All Deductions

To calculate net pay from gross pay: 1) Start with your gross pay (total earnings before deductions). 2) Subtract federal income tax (typically 10-37% based on your tax bracket). 3) Subtract state income tax (0-13.3% depending on your state). 4) Subtract FICA taxes: Social Security (6.2% up to $168,600) and Medicare (1.45% on all earnings). 5) Subtract pre-tax deductions like 401(k) contributions and health insurance. 6) Subtract post-tax deductions like Roth 401(k), garnishments, or union dues. The remaining amount is your net pay or take-home pay.

On average, Americans pay 20-30% of their gross pay in taxes and deductions, though this varies significantly. Federal income tax ranges from 10-37% depending on your tax bracket. FICA (Social Security + Medicare) is 7.65% for most workers. State income tax ranges from 0% (9 states have no income tax) to 13.3% (California). Additional deductions include 401(k) contributions (typically 3-15%), health insurance ($100-500/month), and other voluntary deductions. A typical middle-class worker earning $60,000/year might take home about $45,000-48,000 (75-80% of gross pay).

Gross pay is your total earnings before any deductions - this is your salary or hourly rate multiplied by hours worked. Net pay (take-home pay) is what you actually receive in your bank account after all deductions. Deductions include: mandatory taxes (federal, state, local income tax, and FICA), pre-tax deductions (401k, traditional IRA, FSA, HSA, health insurance), and post-tax deductions (Roth 401k, life insurance, garnishments). For example, if your gross annual salary is $60,000 and you have $12,000 in total deductions, your net pay is $48,000 ($4,000/month). The difference between gross and net pay is crucial for budgeting because you can only spend your net pay.

Federal income tax withholding depends on your tax bracket, filing status, and W-4 form information. For 2024, tax brackets are: 10% (income up to $11,600), 12% ($11,600-$47,150), 22% ($47,150-$100,525), 24% ($100,525-$191,950), 32% ($191,950-$243,725), 35% ($243,725-$609,350), and 37% (over $609,350) for single filers. These are marginal rates, meaning you pay different rates on different portions of your income. Most employers withhold based on IRS Publication 15-T and your W-4 form. You can adjust withholding by submitting a new W-4. If too much is withheld, you'll get a refund when filing taxes; too little means you'll owe money.

FICA (Federal Insurance Contributions Act) is the combined tax for Social Security and Medicare, totaling 7.65% of your gross pay for most employees. It consists of: Social Security tax (6.2% on earnings up to $168,600 in 2024 - this wage base limit increases annually), and Medicare tax (1.45% on all earnings with no cap). High earners pay an Additional Medicare Tax of 0.9% on wages exceeding $200,000 (single) or $250,000 (married filing jointly). Self-employed individuals pay the full 15.3% (both employee and employer portions) but can deduct the employer portion. FICA taxes fund Social Security retirement benefits and Medicare health insurance for seniors. Unlike income tax, FICA is a flat rate with no deductions or exemptions.

Yes, contributing to a 401(k) is generally beneficial despite reducing take-home pay for several reasons: 1) Tax savings: Traditional 401(k) contributions are pre-tax, reducing your taxable income. For example, contributing $10,000 in the 22% tax bracket saves $2,200 in federal taxes, so your take-home only decreases by $7,800. 2) Employer match: Many employers match 50-100% of contributions up to 3-6% of salary - this is free money you shouldn't leave on the table. 3) Compound growth: Investments grow tax-deferred for decades. $500/month for 30 years at 7% annual return grows to $607,000. 4) 2024 contribution limits: $23,000 for those under 50, $30,500 for 50+. Financial experts recommend saving 10-15% of gross income for retirement. Even if budgets are tight, at minimum contribute enough to get the full employer match.

Pay frequency determines how often you receive paychecks and affects the amount per check, though annual totals remain the same. Common frequencies: Weekly (52 paychecks/year) - smallest per-check amount but most frequent; Bi-weekly (26 paychecks/year) - most common, every two weeks, includes two 'extra' paychecks some months; Semi-monthly (24 paychecks/year) - typically 1st and 15th, consistent dates but varying days; Monthly (12 paychecks/year) - largest per-check amount, easier budgeting but requires discipline between checks. Tax withholding may be calculated differently: bi-weekly assumes 26 pay periods, while semi-monthly assumes 24. This can cause slight differences in withholding per check. Bi-weekly often results in two 'bonus' months per year with three paychecks, which many people use for savings or debt payoff.