1. What is This Calculator?

This calculator determines your monthly net salary for a $120,000 annual salary in Massachusetts after accounting for federal tax, state tax, and FICA contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Federal Tax} \) — Annual federal income tax amount
• \( \text{MA State Tax} \) — Annual Massachusetts state income tax amount
• \( \text{FICA} \) — Annual Social Security and Medicare tax contributions

Explanation: The calculation subtracts all taxes from the gross annual salary and divides by 12 months.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with budgeting, financial planning, and comparing job offers. Massachusetts has a flat state income tax rate of 5%.

4. Using the Calculator

Tips: Enter your annual federal tax, MA state tax, and FICA amounts in dollars. The calculator will compute your monthly take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes. For $120,000 salary, FICA would be approximately $9,180.

Q2: How accurate is this calculator?
A: Accuracy depends on the tax amounts you input. For precise calculations, use paycheck calculators or consult a tax professional.

Q3: Does this account for pre-tax deductions?
A: No, this assumes $120,000 is taxable income. Adjust your inputs if you have 401(k), HSA, or other pre-tax deductions.

Q4: What's the typical federal tax for $120k in MA?
A: For 2023, federal tax would be approximately $19,000-$22,000 for a single filer, depending on deductions.

Q5: Are local taxes included?
A: Massachusetts doesn't have local income taxes, so they're not included in this calculation.