1. What is Net Hourly Pay?

Net hourly pay is the amount you actually take home after all deductions (taxes, FICA, etc.) are subtracted from your gross hourly wage. This calculator helps California residents estimate their after-tax hourly earnings using IRS guidelines.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• Gross Hourly — Your pre-tax hourly wage
• Federal Tax — Estimated federal income tax withholding
• California State Tax — Estimated state income tax withholding
• FICA — Social Security and Medicare taxes (7.65% of gross pay)

Explanation: This calculation provides an estimate of your 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 some of the highest state taxes in the U.S., making accurate calculations particularly important.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: It provides a good estimate but actual take-home pay may vary based on additional deductions (health insurance, 401k, etc.) and specific tax situations.

Q2: What's the current FICA rate?
A: FICA is 7.65% (6.2% for Social Security + 1.45% for Medicare). High earners pay an additional 0.9% Medicare tax.

Q3: How do California taxes compare to other states?
A: California has progressive state income tax rates ranging from 1% to 13.3%, among the highest in the nation.

Q4: Are there local taxes in California?
A: Most California cities don't have local income taxes, but some localities may have additional taxes.

Q5: How can I reduce my tax burden?
A: Consider tax-advantaged accounts (401k, IRA, HSA) and deductions. Consult a tax professional for personalized advice.