1. What is Net Hourly Pay?

Net hourly pay is the amount you actually take home after all deductions from your gross hourly wage. In California, these deductions typically include federal tax, state tax, and FICA (Social Security and Medicare).

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Gross\ Hourly \) — Your hourly wage before deductions
• \( Federal\ Tax \) — Federal income tax withheld per hour
• \( California\ State\ Tax \) — California state income tax withheld per hour
• \( FICA \) — Social Security and Medicare taxes per hour

Explanation: This calculation shows your actual take-home pay per hour after mandatory deductions.

3. Importance of Net Pay Calculation

Details: Understanding your net pay helps with budgeting, financial planning, and evaluating job offers. California has relatively high state taxes, making this calculation particularly important.

4. Using the Calculator

Tips: Enter your gross hourly wage and estimated tax withholdings. All values must be positive numbers. For accurate results, use paycheck stubs or tax calculators to determine your actual tax rates.

5. Frequently Asked Questions (FAQ)

Q1: How do I find my tax rates?
A: You can use IRS withholding calculators for federal tax and California FTB calculators for state tax. FICA is typically 7.65% of gross pay.

Q2: Are there other deductions not included here?
A: Yes, this calculator doesn't account for health insurance, retirement contributions, or other voluntary deductions.

Q3: Why is California state tax higher?
A: California has progressive tax rates that can be significantly higher than many other states, especially at higher income levels.

Q4: Does this work for overtime pay?
A: Overtime may be taxed differently. For overtime calculations, you may need to adjust your tax rates.

Q5: How often should I recalculate?
A: Recalculate whenever your pay rate changes, tax laws change, or you experience significant life changes (marriage, dependents, etc.).