1. What is CTC vs In-Hand Salary?

Cost to Company (CTC) is the total amount an employer spends on an employee annually, while in-hand salary is the amount the employee actually receives after all deductions (taxes, insurance, etc.). This calculator helps estimate your take-home pay in Atlanta, Georgia.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CTC \) — Total annual compensation package
• \( FederalTax \) — Calculated based on IRS tax brackets
• \( StateTax \) — Georgia state income tax (1% up to $750, 5% above)
• \( FICA \) — Social Security (6.2%) and Medicare (1.45%) taxes

3. Tax Breakdown Explanation

Federal Tax: Progressive tax based on IRS brackets for your filing status (single, married, etc.)

Georgia State Tax: 1% on first $750 of taxable income, 5% on amounts above $750

FICA: Social Security tax (6.2% up to wage base limit) + Medicare tax (1.45% with additional 0.9% for high earners)

4. Using the Calculator

Tips: Enter your total CTC in USD, select your federal tax filing status. The calculator will estimate your deductions and net salary.

5. Frequently Asked Questions (FAQ)

Q1: Does this include all possible deductions?
A: No, this is an estimate that includes major taxes but may not account for health insurance, retirement contributions, or other deductions.

Q2: How accurate is this calculator?
A: It provides a good estimate but actual take-home pay may vary based on exact tax situation, deductions, and credits.

Q3: What's the Social Security wage base limit?
A: For 2023, Social Security tax applies only to the first $160,200 of earnings.

Q4: Are there local taxes in Atlanta?
A: No, Georgia doesn't have local income taxes, though there may be sales and property taxes.

Q5: How often are tax brackets updated?
A: Tax brackets are typically adjusted annually for inflation by the IRS and state authorities.