1. What is Net Hourly Wage?

Net hourly wage is the amount you actually take home per hour after deducting federal taxes and FICA (Social Security and Medicare) contributions. This calculator helps Texas residents estimate their actual earnings.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Hourly — Your hourly wage before any deductions
• Federal Tax — Estimated federal income tax withheld per hour
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)

3. Importance of Net Wage Calculation

Details: Understanding your net wage helps with budgeting, financial planning, and comparing job offers. Texas has no state income tax, so federal taxes and FICA are the primary deductions.

4. Using the Calculator

Tips: Enter your gross hourly wage, estimated federal tax per hour, and FICA deductions per hour. For typical FICA, multiply gross by 0.0765 (7.65%).

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't this include state tax?
A: Texas doesn't have state income tax, so only federal taxes and FICA apply.

Q2: How accurate is this calculator?
A: It provides a basic estimate. Actual take-home pay may vary based on additional deductions (health insurance, 401k, etc.).

Q3: What's the typical FICA rate?
A: FICA is typically 7.65% (6.2% for Social Security + 1.45% for Medicare).

Q4: Should I use pre-tax or post-tax deductions?
A: This calculator uses post-tax deductions. For pre-tax deductions (like 401k), subtract them from gross before calculating taxes.

Q5: How can I estimate my federal tax?
A: Use IRS withholding tables or divide your expected annual federal tax by work hours per year.