1. What is Net Salary?

Net salary is the amount of money an employee takes home after all deductions have been made from their gross salary. In Massachusetts, these deductions typically include federal tax, state tax, and FICA (Social Security and Medicare taxes).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total earnings before any deductions
• Federal Tax — Amount withheld for federal income tax
• MA State Tax — Massachusetts state income tax withheld
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

Explanation: This calculation provides the take-home pay after mandatory deductions for Massachusetts residents.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps with budgeting, financial planning, and verifying paycheck accuracy. Massachusetts has a flat 5% state income tax rate as of 2024.

4. Using the Calculator

Tips: Enter all amounts in dollars. For accurate results, use values from your pay stub or W-4 form. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is total earnings before deductions, while net salary is the amount you actually receive after taxes and other deductions.

Q2: How is Massachusetts state tax calculated?
A: Massachusetts has a flat 5% income tax rate. Some local taxes may apply in certain municipalities.

Q3: What is included in FICA?
A: FICA includes Social Security tax (6.2% on income up to $168,600 in 2024) and Medicare tax (1.45% on all wages, plus 0.9% additional Medicare tax on wages over $200,000).

Q4: Are there other deductions not included here?
A: Yes, this calculator focuses on core deductions. Other deductions might include health insurance, retirement contributions, or wage garnishments.

Q5: How often should I calculate my net salary?
A: It's good practice to check whenever your gross pay changes, you adjust withholdings, or tax laws change.