Take-Home Pay Calculator

Taxable wages = gross annual pay − pre-tax deductions (401(k) contributions + health premiums).

Income tax = taxable wages × (federal rate + state rate).

Social Security tax = min(gross pay, wage base) × 6.2%.

Medicare tax = gross pay × 1.45%, plus 0.9% on wages above $200,000.

Net pay = gross pay − pre-tax deductions − all taxes − post-tax deductions, divided by paychecks per year.

• Convert hourly pay to an annual figure if needed: rate × hours per week × 52.
• Subtract 401(k)% and health premiums to get taxable wages.
• Apply the federal and state effective rates to taxable wages.
• Add FICA (Social Security capped at the wage base, plus Medicare).
• Subtract all taxes and post-tax deductions from gross pay, then divide by the number of paychecks a year.

Net pay is what lands in your account after Social Security, Medicare, the income tax rate you entered, and any pre-tax deductions. Social Security and Medicare use their statutory rates; income tax is only as accurate as the effective rate you supply.

Common mistakes and assumptions

• Entering a marginal tax bracket instead of an effective rate — your average rate across all income is lower than the top bracket.
• Forgetting pre-tax deductions such as retirement contributions and health premiums, which lower taxable pay as well as net pay.
• Reading the figure as exact. Credits, state rules, and mid-year changes all shift real withholding.

A $78,000 salary paid biweekly, with a 5% 401(k) contribution, $3,000 in annual health premiums, and 12%/4% effective tax rates.

1. 1Pre-tax deductions = $78,000 × 5% + $3,000 = $3,900 + $3,000 = $6,900.
2. 2Taxable wages = $78,000 − $6,900 = $71,100.
3. 3Federal tax = $71,100 × 12% = $8,532. State tax = $71,100 × 4% = $2,844.
4. 4Social Security = min($78,000, $184,500) × 6.2% = $4,836. Medicare = $78,000 × 1.45% = $1,131 (no surtax; under $200,000).
5. 5Total tax = $8,532 + $2,844 + $4,836 + $1,131 = $17,343.
6. 6Net annual pay = $78,000 − $6,900 − $17,343 = $53,757, or $2,067.58 per biweekly paycheck.
7. 7Effective total tax rate = $17,343 ÷ $78,000 = 22.23%.

Why doesn't this match my actual paycheck exactly?

Real withholding uses IRS and state tax tables based on your W-4 elections, filing status, and exact bracket, not a single flat rate. This calculator uses an effective (average) rate you choose, so treat the result as a close estimate rather than a payroll-accurate figure.

What is the Social Security wage base?

It's the annual amount of wages subject to the 6.2% Social Security tax. Wages above that amount are not taxed for Social Security in that year. This calculator assumes an estimated 2026 wage base of $184,500; check the actual figure published by the SSA for precision.

Does 401(k) contribution reduce all my taxes?

A traditional 401(k) contribution reduces wages subject to federal and (usually) state income tax, but not the wages subject to Social Security and Medicare. That's why this calculator only removes it before computing income tax, not FICA.

Why is there an extra 0.9% Medicare tax?

The Additional Medicare Tax applies to wages above $200,000 for a single filer, on top of the standard 1.45% Medicare rate. It only applies to the portion of pay above that threshold, not your entire paycheck.

Should health premiums always be pre-tax?

Most employer health plans use pre-tax premiums under a Section 125 plan, which is what this calculator assumes. If your premiums are deducted after tax, add them to post-tax deductions instead and set health premium to zero.

How do I use this to compare a raise or job offer?

Run the calculator once with your current numbers and again with the new salary, keeping deduction and tax-rate assumptions the same. The difference in net pay per paycheck is a more honest comparison than comparing gross salaries alone.