Salary Calculator
Calculate your take-home pay broken down by year, month, and paycheck.
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Understanding Your Paycheck
Your paycheck is more than just a deposit. It starts with your 'Gross Pay' (your agreed salary or hourly wage). From this, various deductions are subtracted to reach your 'Net Pay' (take-home money). The biggest deductions are usually federal and state income taxes, followed by FICA taxes (Social Security and Medicare). You may also see deductions for health insurance, 401(k) contributions, or other benefits. Understanding these codes helps you verify you're being paid correctly.
Pre-Tax vs Post-Tax Deductions
Deductions fall into two categories. Pre-tax deductions (like traditional 401(k) and health insurance premiums) are taken out before your income tax is calculated, which lowers your taxable income and saves you money on taxes. Post-tax deductions (like Roth 401(k) or garnishments) are taken out after taxes. Knowing the difference allows you to optimize your take-home pay and tax bill.
How Tax Brackets Work
The US uses a 'progressive' tax system. You don't pay one flat rate on all your income. Instead, income is filled into 'buckets' (brackets). You pay 10% on the first bucket, 12% on the next, and so on. Your 'Marginal Tax Rate' is the rate of the highest bucket you fall into, but your 'Effective Tax Rate' (total tax / total income) is usually much lower.