1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions (taxes, social security, etc.) have been subtracted from gross salary. In Ontario, California, these deductions include federal tax, California state tax, FICA (Social Security and Medicare), and any applicable local taxes.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Total earnings before deductions
• Federal Tax — Based on IRS tax brackets (progressive taxation)
• California State Tax — Based on California's progressive tax brackets
• FICA — 6.2% Social Security (up to wage base) + 1.45% Medicare
• Local Tax — Any additional municipal taxes (varies by location)

3. Tax Brackets Explained

Federal Tax Brackets (2023): Progressive rates from 10% to 37% based on filing status and income level.

California Tax Brackets (2023): Progressive rates from 1% to 12.3% based on income level.

FICA: Social Security tax applies only to first $160,200 of earnings (2023), while Medicare tax applies to all earnings with an additional 0.9% for high earners.

4. Using the Calculator

Instructions: Enter your annual gross salary, select your filing status, and include any local taxes if applicable. The calculator will estimate your net pay after all standard deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides an estimate. Actual take-home pay may vary based on additional factors like retirement contributions, insurance premiums, or tax credits.

Q2: What about California SDI?
A: California State Disability Insurance (SDI) is typically 1.1% of wages up to $153,164 (2023), but isn't included in this calculator.

Q3: How often are tax brackets updated?
A: Tax brackets are adjusted annually for inflation. This calculator uses 2023 brackets.

Q4: What if I'm self-employed?
A: Self-employed individuals pay additional self-employment tax (15.3%) which isn't accounted for here.

Q5: Are there local taxes in Ontario, CA?
A: Ontario doesn't have a local income tax, but some cities in California do. Include any applicable local taxes if needed.