1. What is Net Salary Calculation?

The net salary calculation determines take-home pay by subtracting all taxes and deductions from gross salary. For a $120,000 salary in Massachusetts, this includes federal tax, state tax, and FICA contributions.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Federal\ Tax \) — Federal income tax amount
• \( MA\ State\ Tax \) — Massachusetts state income tax
• \( FICA \) — Social Security and Medicare taxes

Explanation: The equation accounts for all mandatory deductions from gross salary to determine actual take-home pay.

3. Importance of Net Salary Calculation

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

4. Using the Calculator

Tips: Enter your federal tax, Massachusetts state tax, and FICA amounts in dollars. The calculator will compute your net salary after all deductions.

5. Frequently Asked Questions (FAQ)

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

Q2: What's typical federal tax for $120k in MA?
A: For single filers, approximately $19,000-$22,000 depending on deductions. Married filers typically pay less.

Q3: How much is MA state tax on $120k?
A: Massachusetts has a flat 5% tax rate, so approximately $6,000, minus any exemptions.

Q4: What other deductions might apply?
A: Health insurance, retirement contributions, and other voluntary deductions would further reduce net pay.

Q5: How accurate is this calculator?
A: It provides a basic estimate. For precise calculations, consult a tax professional with your complete financial details.