1. What is Net Salary?

Net salary, often called take-home pay, is the amount of money you receive after all deductions (taxes, insurance, retirement contributions, etc.) have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total earnings before any deductions
• Federal Tax — Amount withheld for federal income tax
• State Tax — Amount withheld for state income tax
• FICA — Social Security and Medicare taxes (7.65% of gross salary typically)

Explanation: This calculation provides an estimate of your take-home pay after major tax deductions.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with budgeting, financial planning, and evaluating job offers. It shows the actual amount you'll have available for living expenses and savings.

4. Using the Calculator

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

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: Are there other deductions not included here?
A: Yes, this calculator focuses on major tax deductions. Other deductions might include health insurance, retirement contributions, or wage garnishments.

Q3: How can I estimate my tax withholdings?
A: Use the IRS withholding estimator for federal tax and check your state's tax authority for state tax estimates.

Q4: Why is FICA separate from other taxes?
A: FICA (Federal Insurance Contributions Act) taxes are specific payroll taxes for Social Security and Medicare, calculated differently from income taxes.

Q5: Does this calculator account for tax credits?
A: No, this is a basic calculator. For more precise calculations including tax credits, use specialized tax software or consult a tax professional.