Net Pay Calculator — Take-Home Pay After Taxes

Frequently Asked Questions

What is the difference between gross pay and net pay?

Gross pay is your salary or wages before any deductions. Net pay (take-home pay) is what you actually receive after federal taxes, state taxes, Social Security, Medicare, and pre-tax benefit deductions are withheld. For most people, net pay is 65–80% of gross pay depending on income, state, and elections.

Why does contributing to a 401(k) reduce my taxes?

Traditional 401(k) contributions are pre-tax — they reduce your taxable income dollar for dollar. If you contribute $6,000 and you're in the 22% bracket, you save $1,320 in federal taxes. Your take-home pay doesn't decrease by the full contribution amount because you're also paying less in taxes.

What are Social Security and Medicare taxes?

Social Security (6.2%) and Medicare (1.45%) are collectively called FICA taxes. They're withheld from every paycheck regardless of your filing status or deductions. Social Security applies only up to the annual wage base ($176,100 in 2025). An additional 0.9% Medicare surtax applies to income above $200,000 (single) or $250,000 (married).

How accurate is this calculator?

It uses the 2025 federal tax brackets and standard deduction, actual FICA rates, and a flat state tax rate you enter. It's a reliable estimate for W-2 employees with straightforward situations. It doesn't account for tax credits, additional withholding, bonus taxation, or non-standard state tax structures — for those, use a full payroll tool or consult a CPA.

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