1. What is Take Home Salary?

Take home salary (net pay) is the amount an employee receives after all deductions from their gross salary. It's the actual amount deposited in your bank account after taxes and other withholdings.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Pay — Total salary before any deductions
• Federal Tax — Income tax paid to the federal government
• State Tax — Income tax paid to your state government
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)

3. Understanding Salary Components

Details: In the US, typical deductions include federal income tax (progressive rates), state income tax (varies by state), and FICA taxes (Social Security and Medicare).

4. Using the Calculator

Tips: Enter your annual gross salary and estimated tax amounts. For more accurate results, use actual tax withholding amounts from your pay stubs.

5. Frequently Asked Questions (FAQ)

Q1: How can I find my exact tax amounts?
A: Check your pay stubs or W-2 form. Federal and state tax amounts are typically listed separately.

Q2: Does this include other deductions like 401(k)?
A: No, this calculator only accounts for basic tax deductions. Retirement contributions, health insurance, etc. would be additional deductions.

Q3: Why is FICA separate from other taxes?
A: FICA (Federal Insurance Contributions Act) taxes are separate payroll taxes that fund Social Security and Medicare.

Q4: How accurate is this calculator?
A: It provides a basic estimate. Actual take-home pay may vary based on additional deductions, tax credits, and exact tax calculations.

Q5: Does this work for both salaried and hourly employees?
A: Yes, as long as you enter your annual gross pay and annual tax amounts.