1. What is Net Salary?

Net salary, often called take-home pay, is the amount an employee receives after all deductions including taxes, insurance, and retirement contributions have been subtracted from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

3. Understanding Salary Components

Details: In the US, salary deductions typically include federal income tax (progressive rates), state income tax (varies by state), and FICA taxes (Social Security and Medicare). Other deductions may include health insurance, retirement contributions, and other benefits.

4. Using the Calculator

Tips: Enter your gross salary and estimated tax amounts. For accurate results, use paycheck stubs or tax calculators to determine your exact federal, state, and FICA tax amounts.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total earnings before deductions, while net salary is what you actually take home after all deductions.

Q2: How do I know my exact tax amounts?
A: Use IRS withholding calculators for federal tax, check your state's tax website, and remember FICA is typically 7.65% of gross pay.

Q3: Are there other deductions not included here?
A: Yes, this calculator focuses on core taxes. Your actual paycheck may include health insurance, retirement contributions, and other benefits deductions.

Q4: Why is my net pay sometimes higher than calculated?
A: This could be due to tax credits, deductions, or exemptions not accounted for in this basic calculation.

Q5: How often should I calculate my net salary?
A: It's good practice to calculate whenever your salary changes, you move to a new state, or tax laws change significantly.