1. What is Post-Tax Salary?

Post-tax salary (net pay) is the amount of money an employee takes home after all deductions including federal tax, state tax, FICA (Social Security and Medicare), and any local taxes have been subtracted from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Total salary before deductions
• Federal Tax — Federal income tax amount
• California State Tax — State income tax amount
• FICA — Social Security and Medicare taxes
• Local Tax — Any applicable local/city taxes (optional)

3. Importance of Net Pay Calculation

Details: Understanding your net pay helps with budgeting, financial planning, and ensuring proper tax withholdings. In California, state taxes are progressive and typically higher than many other states.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable tax amounts. Local tax is optional as not all California cities impose local income taxes.

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 receive after all taxes and deductions.

Q2: How do I find my tax amounts?
A: Your pay stub should detail all tax withholdings. For estimates, use IRS and California FTB tax calculators.

Q3: Does Ontario, CA have local income tax?
A: Ontario, California does not currently have a local income tax, but other deductions may apply.

Q4: Why is California state tax higher?
A: California has progressive tax rates ranging from 1% to 13.3% for high earners, among the highest in the nation.

Q5: What's included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes, totaling 7.65% of gross pay.