1. What is Net Salary Calculation?

The net salary calculation determines your take-home pay after deducting federal tax, California state tax, and FICA (Social Security and Medicare) contributions from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• Gross Salary — Your total annual earnings before deductions
• Federal Tax — Amount withheld for federal income tax
• California State Tax — Amount withheld for California state income tax
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

Explanation: This calculation provides your actual take-home pay after all mandatory deductions.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with budgeting, financial planning, and verifying paycheck accuracy. California has some of the highest state tax rates in the U.S., making accurate calculations particularly important.

4. Using the Calculator

Tips: Enter your gross annual salary in USD, estimated federal tax withholding, California state tax withholding, and FICA contributions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: The calculator provides estimates based on your inputs. Actual take-home pay may vary based on additional deductions or credits.

Q2: What's included in FICA?
A: FICA includes Social Security (6.2% on income up to $160,200 in 2023) and Medicare (1.45% on all wages, plus 0.9% additional Medicare tax on wages over $200,000).

Q3: How do I estimate my tax withholdings?
A: Use IRS withholding calculator for federal tax and California FTB calculator for state tax estimates.

Q4: Are there other deductions not included?
A: Yes, this doesn't account for health insurance, retirement contributions, or other voluntary deductions.

Q5: Does this work for self-employed individuals?
A: No, self-employed individuals have different tax calculations including self-employment tax.