Home
Back
Salary Calculation:
| From: | To: |
Net pay, or take-home pay, is the amount of money an employee receives after all deductions from their gross pay. This calculator helps determine your actual take-home pay after accounting for major US tax deductions.
The calculator uses the following formula:
Where:
Explanation: The equation subtracts all mandatory tax deductions from your gross salary to determine your actual take-home pay.
Details: Understanding your net pay is crucial for personal budgeting, financial planning, and knowing exactly how much money you'll have available for expenses and savings.
Tips: Enter your annual gross pay in USD, followed by your federal tax, state tax, and FICA amounts. All values must be positive numbers.
Q1: What's the difference between gross pay and net pay?
A: Gross pay is your total earnings before deductions, while net pay is what you actually receive after all taxes and deductions.
Q2: How can I estimate my tax withholdings?
A: You can use IRS withholding calculators or consult your payroll department for accurate estimates based on your W-4 selections.
Q3: 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.
Q4: Why is FICA separate from other taxes?
A: FICA (Federal Insurance Contributions Act) taxes are specifically for Social Security and Medicare and are calculated differently from income taxes.
Q5: How often should I calculate my net pay?
A: It's good practice to calculate whenever your income or tax situation changes significantly (new job, raise, major life event).