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 pay. In California, these deductions typically include federal tax, state tax, and FICA (Social Security and Medicare taxes).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total earnings before any deductions
• Federal Tax — Income tax withheld for the federal government
• California State Tax — Income tax withheld for the state of California
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Understanding California Taxes

Details: California has progressive state income tax rates ranging from 1% to 13.3%. The exact amount depends on your income level and filing status. FICA taxes are consistent nationwide at 7.65% of gross pay (6.2% for Social Security and 1.45% for Medicare).

4. Using the Calculator

Tips: Enter your annual gross pay and estimated tax amounts. For accurate results, use your most recent pay stub or tax documents to determine your exact tax withholdings.

5. Frequently Asked Questions (FAQ)

Q1: Why is my California tax higher than other states?
A: California has some of the highest state income tax rates in the nation, especially for higher income earners.

Q2: Are there other deductions not included here?
A: Yes, this calculator shows major deductions but doesn't include items like health insurance, retirement contributions, or local taxes.

Q3: How often should I calculate my net pay?
A: It's good practice to check whenever your income changes significantly or at least once a year during tax season.

Q4: What if I'm self-employed?
A: Self-employed individuals typically pay additional self-employment tax (15.3%) which covers both employer and employee portions of FICA.

Q5: Can I adjust my tax withholdings?
A: Yes, by submitting a new W-4 form to your employer for federal tax and DE-4 form for California state tax.