1. What is Net Hourly Pay?

Net hourly pay is the amount you actually earn per hour after all deductions (taxes and FICA) are subtracted from your gross annual salary, divided by the total hours worked in a year.

2. How the Calculator Works

The calculator uses the following formula:

Where:

• Gross Pay — Total annual salary before deductions
• Federal Tax — Estimated annual federal income tax
• California State Tax — Estimated annual state income tax
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)
• Hours per Week — Your standard weekly working hours
• 52 — Number of weeks in a year

3. Importance of Calculating Net Hourly Wage

Details: Understanding your true hourly earnings helps with budgeting, comparing job offers, and evaluating the real value of your time. This is particularly important in California where state taxes are relatively high.

4. Using the Calculator

Tips: Enter your annual gross salary, estimated taxes, and typical weekly hours. For most employees, FICA is approximately 7.65% of gross pay (6.2% for Social Security + 1.45% for Medicare).

5. Frequently Asked Questions (FAQ)

Q1: Why calculate net hourly instead of gross hourly?
A: Net hourly shows what you actually take home, which is more meaningful for financial planning than gross wages.

Q2: How accurate is this calculator?
A: Accuracy depends on your tax estimates. For precise calculations, use actual tax withholdings from pay stubs.

Q3: Should I include bonuses in gross pay?
A: Yes, include all taxable compensation to get the most accurate net hourly calculation.

Q4: Does this account for California-specific deductions?
A: The calculator uses your input for California state tax but doesn't automatically calculate it.

Q5: What if my hours vary each week?
A: Use your average weekly hours for the most representative result.