1. What is Net Salary?

Net salary (take-home pay) is the amount an employee receives after all deductions from gross salary. It's calculated by subtracting taxes and other deductions from gross pay.

2. How Net Pay is Calculated

The calculator uses the standard net pay formula:

Where:

• Gross Pay — Total earnings before any deductions
• Taxes — Income tax and other government withholdings
• Deductions — Other payroll deductions (retirement, insurance, etc.)

3. Understanding Tax Brackets (2025-26)

Details: For 2025-26, tax brackets may include federal, state, and local taxes. The exact amount depends on filing status and income level.

4. Common Deductions

Includes: Retirement contributions (401k, IRA), health insurance premiums, social security, Medicare, wage garnishments, and other voluntary deductions.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net pay?
A: Gross pay is total earnings before deductions, while net pay is the amount you actually receive.

Q2: How are tax brackets determined?
A: Tax brackets are progressive - higher income portions are taxed at higher rates. Rates vary by filing status.

Q3: What deductions are mandatory?
A: Federal/state taxes, Social Security, and Medicare are typically mandatory. Others may be voluntary.

Q4: Can I increase my net pay?
A: You may adjust voluntary deductions, but mandatory taxes cannot be changed without legal tax planning.

Q5: Why does my net pay vary paycheck to paycheck?
A: Variations can occur due to overtime, bonus pay, changing tax withholdings, or deduction adjustments.