1. What is Net Hourly Pay?

Net hourly pay is your take-home pay after all taxes and deductions have been subtracted from your gross hourly wage. This represents the actual amount you earn per hour of work.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Hourly — Your hourly wage before any deductions
• Federal Tax — Estimated federal income tax per hour
• State Tax — Estimated state income tax per hour
• FICA — Social Security and Medicare taxes (7.65% of gross typically)

Explanation: This calculation helps you understand your true hourly earnings after mandatory deductions.

3. Importance of Calculating After-Tax Wages

Details: Knowing your net hourly pay helps with budgeting, comparing job offers, and understanding your true earning potential. Many people overestimate their take-home pay by only considering gross wages.

4. Using the Calculator

Tips: Enter all values in USD per hour. For accurate results, use your actual tax withholdings from pay stubs or tax calculators. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I find my tax rates per hour?
A: Divide your total tax withholdings from a pay period by the number of hours worked in that period.

Q2: Does this include other deductions like health insurance?
A: No, this calculator only accounts for federal tax, state tax, and FICA. You would need to subtract other deductions separately.

Q3: Why is my net pay different from this calculation?
A: Actual paychecks may include other deductions (retirement, benefits) or tax credits not accounted for here.

Q4: Is FICA always the same amount?
A: FICA is typically 7.65% of gross wages (6.2% Social Security + 1.45% Medicare), but additional Medicare tax may apply to high earners.

Q5: How accurate is this for salaried employees?
A: You can use it by converting your salary to an hourly rate (divide annual salary by 2080 for 40hr/week).