See exactly how much of your paycheck you keep after taxes and deductions
Understanding your actual take-home pay is one of the most important aspects of personal financial planning, yet many workers are surprised by how much they earn versus how much lands in their bank account. Our Gross to Net Pay Calculator gives you a clear, itemized picture of every dollar that leaves your paycheck — from federal and state income taxes to FICA contributions and voluntary benefit deductions. Whether you're a salaried employee receiving an annual compensation package or an hourly worker trying to budget your weekly paycheck, this calculator handles both scenarios. Simply enter your gross pay, select your pay frequency (weekly, bi-weekly, semi-monthly, monthly, or annual), choose your filing status, select your state, and add any pre-tax deductions like 401(k) contributions or health insurance premiums. You'll instantly see a full breakdown of your net pay along with a visual chart showing where every dollar goes. Beyond the basic gross-to-net conversion, our calculator includes a Gross-Up mode — ideal for HR professionals and employees who want to know what gross amount they need to earn in order to take home a specific desired net amount. This reverse calculation accounts for all applicable taxes and is commonly used when structuring bonus payments, relocation allowances, or benefit buyouts. The calculator uses 2026 federal income tax brackets, the current Social Security wage base of $184,500, and state income tax rates for all 50 states. It also accounts for the Additional Medicare Tax of 0.9% on wages exceeding $200,000 for single filers or $250,000 for married filing jointly. Pre-tax deductions — including 401(k), health insurance premiums, HSA, FSA, and dependent care FSA — are correctly applied to reduce your federal and state taxable income while also reducing FICA wages for the appropriate deduction types. For employees who want more granular control, the Advanced Mode unlocks overtime calculations for hourly workers, custom post-tax deductions, additional withholding amounts, tax exemption options, and a bonus/supplemental wage mode that applies the IRS flat rate of 22% for federal withholding on supplemental wages such as bonuses. The results display your net pay per period as well as annualized figures, so you can see both what each paycheck looks like and what your annual take-home salary will be. The effective tax rate shown helps you understand your real tax burden compared to your marginal tax bracket. Use the side-by-side comparison feature to evaluate how a raise, a new job offer, or a change in 401(k) contribution percentage would affect your monthly cash flow.
Understanding Gross vs. Net Pay
What Is Gross Pay vs. Net Pay?
Gross pay is the total amount of compensation you earn before any taxes or deductions are taken out. For salaried employees, this is your agreed-upon annual salary divided by your number of pay periods. For hourly employees, it is your hourly rate multiplied by the number of hours worked, plus any overtime. Net pay — also called take-home pay — is the amount that actually gets deposited into your bank account after all taxes (federal, state, local, FICA) and deductions (health insurance, 401k, etc.) have been subtracted. The difference between gross and net pay can be substantial, often 25–40% depending on income level, state, and benefits enrolled.
How Is Net Pay Calculated?
The calculation follows a specific order: start with gross pay, subtract pre-tax deductions (401k, health insurance, HSA, FSA) to get your federal and state taxable income, apply the tax brackets to determine federal and state income tax, then calculate FICA taxes on gross wages (minus certain pre-tax benefits). Federal income tax uses 2026 marginal brackets starting at 10% and going up to 37%. Social Security is 6.2% on wages up to $184,500. Medicare is 1.45% on all wages, plus 0.9% on wages above $200,000 (single). State income tax varies from 0% in states like Texas and Florida to 13.3% in California's top bracket. Post-tax deductions are subtracted last, giving you your net take-home pay.
Why Does Understanding Your Net Pay Matter?
Knowing your true take-home pay is essential for budgeting, financial planning, and evaluating job offers. When comparing two job offers, the gross salary number can be misleading — a job paying $90,000 in Texas may deliver more take-home pay than one paying $95,000 in California due to state income taxes. Understanding net pay also helps you optimize pre-tax contributions. Increasing your 401(k) contribution by 1% reduces your take-home pay by less than 1% because the contribution comes out before taxes, effectively giving you a tax discount on your retirement savings. HR professionals also use net-to-gross (gross-up) calculations when awarding tax-equalized bonuses.
Limitations and Caveats
This calculator uses simplified tax tables and flat/approximate rates for some states with complex progressive brackets. It does not account for local income taxes (cities like New York City and Philadelphia impose local taxes), state-specific additional payroll taxes (such as California's SDI or New Jersey's FLI), or tax credits (such as the child tax credit or earned income credit) that reduce your actual tax liability. The results are estimates intended for planning purposes. For exact withholding amounts, consult your employer's payroll department, IRS Publication 15-T, or a qualified tax professional. Tax laws change annually, and individual circumstances (itemizing deductions, multiple jobs, investment income) can significantly affect actual taxes owed.
Formulas
The fundamental payroll formula. Pre-tax deductions (401k, health insurance, HSA, FSA) reduce taxable income before federal and state tax brackets are applied. FICA taxes are calculated on gross wages minus certain qualified pre-tax benefits.
Federal tax is calculated progressively: each portion of taxable income is taxed at the rate for that bracket only. For 2026, brackets range from 10% (first $11,925 single) to 37% (over $626,350 single). Taxable income = Gross Pay − Pre-Tax Deductions − Standard Deduction.
Social Security tax is 6.2% on wages up to the annual wage base ($184,500 for 2026). Medicare is 1.45% on all wages with an Additional Medicare Tax of 0.9% on wages exceeding $200,000 (single) or $250,000 (married filing jointly).
Reverses the net pay calculation to find the gross amount needed to deliver a specific take-home amount. Uses iterative approximation since federal tax brackets are progressive and the effective rate changes with income level.
Reference Tables
2026 Federal Income Tax Brackets (Single Filer)
| Taxable Income Range | Marginal Rate | Tax on Range |
|---|---|---|
| $0 – $11,925 | 10% | Up to $1,192.50 |
| $11,926 – $48,475 | 12% | Up to $4,386 |
| $48,476 – $103,350 | 22% | Up to $12,072.50 |
| $103,351 – $197,300 | 24% | Up to $22,548 |
| $197,301 – $250,525 | 32% | Up to $17,032 |
| $250,526 – $626,350 | 35% | Up to $131,538.75 |
| Over $626,350 | 37% | No cap |
States with No Income Tax on Wages
| State | Notes |
|---|---|
| Alaska | No state income tax; has Permanent Fund Dividend |
| Florida | No state income tax |
| Nevada | No state income tax |
| New Hampshire | No tax on wages (interest/dividend tax fully phased out 2025) |
| South Dakota | No state income tax |
| Tennessee | No tax on wages (Hall Tax fully phased out) |
| Texas | No state income tax |
| Washington | No income tax on wages (capital gains tax exists) |
| Wyoming | No state income tax |
Worked Examples
Salaried Employee — Bi-Weekly Paycheck
Gross pay per period: $75,000 / 26 = $2,884.62
401(k) deduction: $2,884.62 × 6% = $173.08
Health insurance: $150.00
Total pre-tax deductions: $323.08
Federal taxable income (annualized): $75,000 − ($323.08 × 26) − $15,700 standard deduction = $50,899.92
Federal tax (annualized): $1,192.50 + ($36,550 × 12%) + ($2,424.92 × 22%) = $6,212.58
Federal tax per period: $6,212.58 / 26 = $238.95
State tax: $0 (Texas)
Social Security: $2,884.62 × 6.2% = $178.85
Medicare: $2,884.62 × 1.45% = $41.83
Net pay: $2,884.62 − $323.08 − $238.95 − $0 − $178.85 − $41.83 = $2,101.91
Comparing Job Offers in Different States
Texas: Federal taxable = $90,000 − $15,700 = $74,300
Texas federal tax: $1,192.50 + $4,386 + ($25,825 × 22%) = $11,259.60
Texas FICA: $90,000 × 7.65% = $6,885
Texas net: $90,000 − $11,259.60 − $6,885 = $71,855.40
California: Federal taxable = $95,000 − $15,700 = $79,300
CA federal tax: $1,192.50 + $4,386 + ($30,825 × 22%) = $12,363.00
CA state tax (approximate): $95,000 × ~5.2% effective = $4,940
CA FICA: $95,000 × 7.65% = $7,267.50
CA net: $95,000 − $12,363 − $4,940 − $7,267.50 = $70,429.50
Gross-Up for a $5,000 Net Bonus
Supplemental federal rate: 22% (IRS flat rate for bonuses)
State tax rate: 5%
Social Security: 6.2% (assuming under wage base)
Medicare: 1.45%
Total combined rate: 22% + 5% + 6.2% + 1.45% = 34.65%
Required gross = $5,000 / (1 − 0.3465) = $5,000 / 0.6535
= $7,652.64
How to Use This Calculator
Enter Your Gross Pay
Select whether you are paid by salary or hourly wage. If salaried, enter your gross pay amount and choose your pay frequency (weekly, bi-weekly, semi-monthly, or monthly). If hourly, enter your hourly rate and the number of regular hours per pay period. Your gross pay will be calculated automatically.
Set Your Tax Profile
Choose your filing status (Single, Married Filing Jointly, Married Filing Separately, or Head of Household) and select your state from the dropdown. These two fields determine your federal tax bracket and state income tax rate, which are the biggest factors in your take-home pay.
Add Pre-Tax Deductions
Enter any pre-tax benefit deductions you contribute each pay period: your 401(k) percentage, health insurance premium dollar amount, HSA contributions, and FSA contributions. Pre-tax deductions reduce your taxable income, so they save you more money than their face value suggests.
Review Your Results
Your net take-home pay per paycheck and annual amounts will appear instantly. Review the itemized breakdown to see exactly how much goes to federal tax, state tax, Social Security, Medicare, and each deduction category. Use the stacked bar chart to visualize the full composition of your gross pay.
Frequently Asked Questions
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any taxes or deductions are withheld. Net pay — also called take-home pay — is the amount that actually reaches your bank account after federal income tax, state income tax, Social Security, Medicare, and any benefit deductions are subtracted. For most middle-income workers in the U.S., take-home pay typically represents 65–75% of gross pay, but it varies widely depending on income level, state of residence, filing status, and voluntary deductions like 401(k) contributions and health insurance premiums.
What is a gross-up calculation and when is it used?
A gross-up calculation works in reverse — instead of converting gross pay to net pay, it tells you what gross amount an employer needs to pay so that an employee receives a specific desired net amount. This is most commonly used for bonus payments, relocation allowances, and one-time awards where the employer wants the employee to receive the full stated amount after taxes. For example, if an employer wants an employee to net $5,000 in a bonus, the employer calculates the gross amount needed (typically around $7,000–$8,000 depending on the tax rates) so the employee pockets exactly $5,000. Use the Net to Gross toggle in our calculator to perform this calculation.
How do pre-tax deductions like 401(k) reduce my taxes?
Pre-tax deductions are subtracted from your gross pay before federal and state income taxes are calculated. This means you pay income tax on a lower amount. For example, if you earn $5,000 per month and contribute $300 to a traditional 401(k), your federal and state taxable income is calculated on $4,700. If you're in the 22% federal bracket, this saves you roughly $66 per month in federal taxes alone. Health insurance premiums paid through an employer-sponsored plan, HSA contributions, and FSA contributions are also pre-tax and additionally exempt from Social Security and Medicare taxes, which saves an additional 7.65%.
Which states have no income tax?
Nine U.S. states currently have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire (taxes interest and dividends only, fully phased out as of 2025), South Dakota, Tennessee (phased out), Texas, Washington (no income tax, though there is a capital gains tax), and Wyoming. Living in a no-income-tax state can significantly increase your take-home pay. For example, a $75,000 salary earner in Texas takes home approximately $3,500–$5,000 more per year than the same earner in California, depending on their filing status and deductions.
What is the difference between effective and marginal tax rate?
The marginal tax rate is the rate applied to your last dollar of income — the highest tax bracket you reach. The effective tax rate is the average rate you pay across all your income. The U.S. federal income tax system is progressive, meaning only the income within each bracket is taxed at that bracket's rate. For example, a single filer earning $60,000 in 2026 has a marginal federal rate of 22%, but their effective federal rate is much lower — roughly 12–13% — because the first $11,925 is taxed at 10%, the next $36,550 at 12%, and only the remaining income at 22%. Our calculator displays both so you can understand your actual vs. marginal tax burden.
Why doesn't my calculated net pay match my actual paycheck?
Several factors can cause discrepancies between calculator estimates and actual paychecks. First, this calculator uses simplified state tax rates for progressive states — actual withholding may differ based on your employer's state tax withholding tables and any W-4 allowances or adjustments you've specified. Second, local income taxes (cities like New York City, Philadelphia, and Detroit impose local taxes) are not included. Third, state-specific payroll taxes like California's SDI (0.9%), New Jersey's unemployment and family leave insurance, and Washington's long-term care tax are not modeled. Finally, tax credits you may qualify for reduce your actual tax liability. For precise results, consult your W-4 settings, your employer's payroll system, or a tax professional.