1. What is Net Pay?

Net pay, often called take-home pay, is the amount of money you receive after all deductions from your gross salary. In New York City, these deductions include federal tax, state tax, city tax, and FICA (Social Security and Medicare).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total salary before any deductions
• Federal Tax — Income tax paid to the federal government
• New York State Tax — Progressive tax based on income brackets
• New York City Tax — Additional local tax for NYC residents
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Understanding NYC Taxes

New York State Tax: Progressive tax with rates from 4% (up to $8,500) to 8.82% (over $1,077,550).

New York City Tax: Additional local tax with rates from 3.078% (up to $12,000) to 3.876% (over $50,000).

4. Using the Calculator

Tips: Enter your annual gross salary and estimated tax amounts. For accurate results, use paycheck stubs or tax calculators to determine your exact tax amounts.

5. Frequently Asked Questions (FAQ)

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

Q2: Are NYC taxes higher than other cities?
A: Yes, NYC has some of the highest combined state and local taxes in the U.S.

Q3: What is FICA?
A: FICA stands for Federal Insurance Contributions Act, which includes Social Security (6.2%) and Medicare (1.45%) taxes.

Q4: Can I reduce my NYC taxes?
A: Some deductions and credits are available, but most NYC residents must pay city taxes if they earn above the minimum threshold.

Q5: How often should I calculate my net pay?
A: It's good practice to calculate whenever your salary changes or at least annually to understand your take-home pay.