1. What is Net Pay?

Net pay is the amount of money you take home after all deductions including federal tax, state tax, FICA (Social Security and Medicare), and any local taxes.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Federal Tax — Based on 2023 federal tax brackets
• California State Tax — Based on 2023 California tax brackets
• FICA — 7.65% for Social Security and Medicare
• Local Tax — Any additional local/city taxes if applicable

3. California Tax Specifics

California has progressive state income tax rates ranging from 1% to 12.3%. The calculator uses the 2023 tax brackets for accurate calculations.

4. Using the Calculator

Instructions: Enter your gross annual salary in USD. If you have any local taxes (like San Francisco payroll tax), enter that amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax rates up to date?
A: This calculator uses 2023 tax brackets. Tax laws change periodically, so check for updates each year.

Q2: What's not included in this calculation?
A: This doesn't account for 401(k) contributions, health insurance premiums, or other pre-tax deductions.

Q3: Why is FICA 7.65%?
A: FICA consists of 6.2% for Social Security and 1.45% for Medicare (total 7.65%).

Q4: How accurate is this calculator?
A: It provides a good estimate but doesn't replace professional tax advice, especially for complex situations.

Q5: What if I'm paid bi-weekly or monthly?
A: First calculate your annual gross pay (hourly rate × hours/week × 52, or monthly × 12) before using this calculator.