1. What is the Salary Calculator?

This calculator helps you estimate your take-home pay (net pay) after accounting for federal tax, state tax, and FICA contributions based on 2023 rates and brackets.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Federal Tax — Calculated based on IRS 2023 tax brackets
• State Tax — Varies by state (some states have no income tax)
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Understanding Your Paycheck

Details: Your take-home pay is typically much less than your gross salary due to mandatory deductions. Federal tax uses progressive brackets, while state tax varies widely.

4. Using the Calculator

Tips: Enter your annual gross salary, select your filing status and state. The calculator will estimate your federal tax, state tax, FICA contributions, and net pay.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides estimates only. Actual deductions may vary based on additional factors like retirement contributions, benefits, and deductions.

Q2: What states have no income tax?
A: As of 2023: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

Q3: Why is FICA deducted?
A: FICA funds Social Security and Medicare programs. All wage earners contribute unless exempt.

Q4: How often are tax brackets updated?
A: The IRS typically adjusts brackets annually for inflation.

Q5: Can I change my withholding?
A: Yes, by submitting a new W-4 form to your employer, but you must pay at least what you owe.