1. What is Monthly Net Pay?

Monthly net pay is the amount of money you take home each month after deductions like taxes and FICA contributions. In Texas, there is no state income tax, so the main deductions are federal tax and FICA.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Federal Tax — Total annual federal income tax
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)
• 12 — Months in a year

3. Importance of Calculating Net Pay

Details: Knowing your monthly net pay helps with budgeting, financial planning, and understanding your true take-home income after all mandatory deductions.

4. Using the Calculator

Tips: Enter your annual gross pay, estimated federal tax, and FICA contributions. The calculator will divide the net amount by 12 to give your monthly take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't this calculator include state tax?
A: Texas has no state income tax, so it's not included in the calculation.

Q2: How do I estimate my federal tax?
A: You can use IRS tax tables or last year's W-2 form. For 2023, federal tax rates range from 10% to 37% depending on income.

Q3: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes. The total is typically 7.65% of your gross pay.

Q4: Are there other deductions not included here?
A: Yes, this calculator doesn't account for health insurance, retirement contributions, or other voluntary deductions.

Q5: Is this calculator specific to Texas?
A: Yes, it's designed for Texas residents as it doesn't include state income tax. For other states, you would need to add state tax deductions.