1. What is Net Pay?

Net pay, 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 pay.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total earnings before any deductions
• Federal Tax — Progressive tax based on IRS brackets (10% up to $11,600 for single filers, etc.)
• State Tax — Varies by state (0% in Texas, Florida, etc.)
• FICA — 7.65% for Social Security (6.2%) and Medicare (1.45%)

3. Understanding Tax Deductions

Details: The calculator provides an estimate. Actual take-home pay may vary based on additional factors like 401(k) contributions, health insurance premiums, and other pre-tax deductions.

4. Using the Calculator

Tips: Enter your annual gross salary and select your state and filing status. The calculator will estimate your federal, state, and FICA taxes to determine your net pay.

5. Frequently Asked Questions (FAQ)

Q1: Why is my take-home pay less than expected?
A: This calculator only accounts for major taxes. Your actual paycheck may have additional deductions for benefits, retirement, etc.

Q2: Are state taxes accurate for all states?
A: We use simplified rates. Some states have progressive tax systems like the federal government.

Q3: What about local/city taxes?
A: This calculator doesn't account for local taxes (like NYC city tax). Those would further reduce take-home pay.

Q4: Does this include standard deduction?
A: The federal tax calculation incorporates standard deductions for the selected filing status.

Q5: How often should I recalculate?
A: Recalculate whenever your salary changes or tax laws are updated (typically annually).