Take-Home Pay Calculator

How It Works

Take-home pay (net pay) is what you actually receive after all deductions. The main deductions are federal income tax, state income tax, Social Security, Medicare, and any benefits you’ve elected.

Basic Formula

=gross_pay - federal_tax - state_tax - social_security - medicare - other_deductions

FICA Taxes (Social Security + Medicare)

These are flat percentages - everyone pays the same rates:

Tax	Rate	Annual Cap (2024)
Social Security	6.2%	$168,600
Medicare	1.45%	No cap
Medicare Surtax	+0.9%	Income over $200K

Total FICA: 7.65% (up to SS cap)

=gross_pay * 0.0765

Federal Income Tax (2024 Brackets)

Tax is calculated in brackets - you only pay higher rates on income above each threshold.

Single Filers

Income Range	Tax Rate
$0 - $11,600	10%
$11,601 - $47,150	12%
$47,151 - $100,525	22%
$100,526 - $191,950	24%
$191,951 - $243,725	32%
$243,726 - $609,350	35%
$609,351+	37%

Married Filing Jointly

Income Range	Tax Rate
$0 - $23,200	10%
$23,201 - $94,300	12%
$94,301 - $201,050	22%
$201,051 - $383,900	24%
$383,901 - $487,450	32%
$487,451 - $731,200	35%
$731,201+	37%

Example Calculation

Gross Annual Salary: $75,000 Filing Status: Single State: Texas (no income tax) Pre-tax deductions: $4,000 (401k)

Step 1: Calculate Taxable Income

=$75,000 - $14,600 (standard deduction) - $4,000 (401k) = $56,400

Step 2: Calculate Federal Tax

10% on first $11,600 = $1,160
12% on $11,601-$47,150 = $4,266
22% on $47,151-$56,400 = $2,035
Total Federal Tax = $7,461

Step 3: Calculate FICA (on gross)

Social Security: $75,000 × 6.2% = $4,650
Medicare: $75,000 × 1.45% = $1,088
Total FICA = $5,738

Step 4: Calculate Take-Home

$75,000 - $7,461 - $5,738 - $4,000 = $57,801/year
$57,801 / 12 = $4,817/month

Quick Take-Home Estimates

Single Filer, No State Tax

Gross Annual	Effective Tax Rate	Take-Home
$40,000	~18%	~$32,800
$50,000	~19%	~$40,500
$60,000	~20%	~$48,000
$75,000	~22%	~$58,500
$100,000	~24%	~$76,000
$125,000	~26%	~$92,500
$150,000	~28%	~$108,000

Assumes standard deduction, no other deductions

Building a Take-Home Calculator

Input	Value
Gross Annual Salary	$75,000
Filing Status	Single
Pay Frequency	Biweekly
Federal Allowances	1
State Tax Rate	5%
401(k) Contribution %	6%
Health Insurance/Month	$200
Other Pre-tax Deductions	$0

Calculation	Formula
Gross Per Pay Period	=B1/26
Pre-tax Deductions	=(B1*B6/26)+(B7*12/26)+B8
Taxable Income	=B9-B10
Federal Tax (estimate)	=B11*0.15
State Tax	=B11*B5
Social Security	=B9*0.062
Medicare	=B9*0.0145
Net Pay	=B9-B10-B12-B13-B14-B15

State Income Tax Rates

No State Income Tax

• Alaska, Florida, Nevada, New Hampshire*, South Dakota, Tennessee*, Texas, Washington, Wyoming

*NH and TN tax investment income only

Flat Tax States

State	Rate
Arizona	2.5%
Colorado	4.4%
Idaho	5.8%
Illinois	4.95%
Indiana	3.05%
Kentucky	4.0%
Massachusetts	5.0%
Michigan	4.25%
North Carolina	5.25%
Pennsylvania	3.07%
Utah	4.65%

Progressive Tax States (Examples)

California: 1% - 13.3% New York: 4% - 10.9% New Jersey: 1.4% - 10.75%

Pre-Tax vs. After-Tax Deductions

Pre-Tax (Reduces Taxable Income)

• 401(k) / 403(b) contributions
• Traditional IRA contributions
• Health insurance premiums
• HSA contributions
• FSA contributions
• Commuter benefits

After-Tax (No Tax Benefit)

• Roth 401(k) / Roth IRA
• Life insurance over $50K
• Disability insurance (sometimes)
• Union dues
• Garnishments

Impact of Pre-Tax Deductions

Example: $75,000 salary, 22% marginal bracket

401(k) Contribution	Tax Savings	Net Cost
$0	$0	$0
$5,000	$1,100	$3,900
$10,000	$2,200	$7,800
$15,000	$3,300	$11,700
$23,000 (max)	$5,060	$17,940

Formula:

=contribution * marginal_tax_rate

Biweekly vs. Semi-Monthly Pay

Pay Type	Paychecks/Year	Calculation
Weekly	52	Annual / 52
Biweekly	26	Annual / 26
Semi-monthly	24	Annual / 24
Monthly	12	Annual / 12

Biweekly bonus: Two months have 3 paychecks - good for savings

Calculating Effective Tax Rate

=total_taxes_paid / gross_income

Example: $75,000 gross, $16,000 total taxes

=$16,000 / $75,000 = 21.3% effective rate

This is lower than your marginal rate because of brackets and deductions.

Marginal vs. Effective Rate

Term	Definition	Example ($75K)
Marginal Rate	Rate on next dollar earned	22%
Effective Rate	Average rate on all income	~17%

A raise puts only the new income in the higher bracket, not all your income.

Bonus and Commission Tax

Bonuses are often taxed at a flat 22% federal rate (supplemental income). Your actual tax depends on total annual income.

=bonus * (1 - 0.22 - state_rate - 0.0765)

$5,000 bonus in California:

=$5,000 * (1 - 0.22 - 0.093 - 0.0765) = $3,057 take-home

Self-Employment Considerations

Self-employed pay both employer and employee FICA:

=gross * 0.153  (15.3% SE tax)

But can deduct half of SE tax from income tax.

W-2 Employee	Self-Employed
FICA: 7.65%	SE Tax: 15.3%
Employer matches	No match
Taxes withheld	Pay quarterly

Pro Tips

1. Use IRS withholding calculator - ensure you’re not over/under withholding

2. Max tax-advantaged accounts - 401k, HSA, FSA reduce current taxes

3. Check your W-4 - life changes (marriage, kids, home) affect withholding

4. Review paystubs - ensure deductions match what you elected

5. Plan for bonuses - supplemental income may push you into higher bracket

Track it all year: The Annual Tax Planner Template helps track income from all sources, estimate quarterly payments, and organize deductions before tax season.

Common Errors

• Confusing marginal and effective rates - you don’t pay 22% on all income just because you’re in the 22% bracket
• Forgetting FICA - 7.65% adds up quickly
• Ignoring state taxes - can add 5-13% in some states
• Not accounting for pre-tax deductions - 401k, health insurance reduce taxable income
• Assuming bonus tax is permanent - 22% flat withholding adjusts at tax time