1. What is Net Salary?

Net salary, also known as take-home pay, is the amount of money you receive after all deductions (taxes, insurance, retirement contributions, etc.) have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total earnings before any deductions
• Federal Tax — Income tax withheld for the federal government
• MA State Tax — Income tax withheld for Massachusetts state
• FICA — Social Security and Medicare taxes (7.65% of gross salary typically)

3. Massachusetts Tax Overview

Details: Massachusetts has a flat state income tax rate of 5.0% as of 2023. There are also local taxes in some municipalities. The state follows federal tax guidelines for most deductions.

4. Using the Calculator

Tips: Enter your gross salary and all tax amounts in USD. The calculator will compute your net take-home pay after subtracting all specified deductions.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total earnings before deductions, while net salary is what you actually take home after all deductions.

Q2: How is FICA calculated?
A: FICA is typically 7.65% of gross pay (6.2% for Social Security and 1.45% for Medicare). Higher earners pay an additional 0.9% Medicare tax.

Q3: Are Massachusetts taxes higher than other states?
A: MA has a flat 5% income tax rate, which is moderate compared to other states. Some states have no income tax, while others have higher progressive rates.

Q4: What other deductions might affect my net pay?
A: Other common deductions include health insurance premiums, retirement contributions, wage garnishments, and voluntary deductions.

Q5: How often should I check my net pay?
A: Review each pay stub to ensure accuracy. Significant changes in your net pay may indicate errors or changes in your tax situation.