1. What is Take Home Salary?

Take home salary (net pay) is the amount you receive after all deductions from your gross salary. In Houston, Texas, the main deductions are federal income 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 annual salary before deductions
• Federal Tax — Calculated based on IRS tax brackets
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Understanding Tax Deductions

Federal Tax: Progressive tax system where higher income is taxed at higher rates. Texas has no state income tax.

FICA: Social Security tax (6.2%) applies to first $160,200 of income. Medicare tax (1.45%) applies to all income, with additional 0.9% for income over $200,000.

4. Using the Calculator

Tips: Enter your annual gross salary in USD. The calculator will estimate your federal tax, FICA deductions, and net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't this calculator include state tax?
A: Texas is one of the few states with no state income tax, so only federal taxes apply.

Q2: Are there other deductions not included here?
A: This calculator shows mandatory federal deductions. Your actual paycheck may include other deductions like health insurance, retirement contributions, etc.

Q3: How accurate is this calculator?
A: It provides estimates based on standard deductions. Your actual taxes may vary based on filing status, dependents, and other factors.

Q4: Does this account for bonuses or overtime?
A: No, this calculates based on regular salary. Supplemental wages may be taxed differently.

Q5: What about local taxes in Houston?
A: Houston has no local income tax, though property and sales taxes apply to other aspects of living expenses.