See exactly how much you'll take home after taxes and deductions
Enter your gross pay and pay frequency, your filing status, state, and any pre-tax deductions like 401(k) or health insurance. The calculator itemizes federal and state income tax, Social Security and Medicare, then shows your true take-home pay and effective tax rate.
Net pay = gross pay − federal income tax − state income tax − Social Security (6.2%) − Medicare (1.45%) − pre-tax deductions. Federal tax follows marginal brackets — only the income above each threshold is taxed at the higher rate, which is why the effective rate is below your top bracket.
A $2,500 gross paycheck keeps $1,980 after $203 federal tax, $125 state tax, $155 Social Security and $36 Medicare — an effective tax rate of about 20.8%. Adding a 401(k) contribution before tax lowers your taxable income and your tax bill.
Because of taxes and deductions. Your gross pay is what your employer agrees to pay you, but federal income tax, Social Security (6.2%), Medicare (1.45%), state income tax (if your state has one), and pre-tax deductions like 401(k) and health insurance all come out before you get paid. The difference between gross and net is usually 20-35% depending on your income level and where you live.
Biweekly means you get paid every two weeks — 26 paychecks a year. Semi-monthly means twice a month, usually on the 15th and last day — 24 paychecks a year. They sound similar but they're not. If you make $65,000 a year, biweekly pay is $2,500 per check, but semi-monthly is $2,708.50. When you're calculating monthly budget, use the right number or you'll be off by about 8%.
Nine states don't tax wage income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. That means your take-home pay goes further in those states — though they often make up for it with higher sales taxes or property taxes. California and Hawaii have the highest state income tax rates, which is a big reason some people move to Texas or Florida.
On your W-4 form, you claim allowances that determine how much federal tax your employer withholds. The more allowances you claim, the less tax comes out of each paycheck — but you might owe money at tax time. Claim too few and you get a big refund in April (which means you gave the government an interest-free loan all year). The 2020 W-4 form simplified this — you no longer claim "allowances" in the old way, you just enter dependents and other deductions directly.
Yes, for most people. Traditional 401(k) contributions are pre-tax, meaning they lower your taxable income right now. If you make $60,000 and contribute 10% ($6,000), your taxable income drops to $54,000 — you save on taxes today. The trade-off is you pay tax when you withdraw in retirement. If you expect to be in a lower tax bracket in retirement (most people are), this works out well. Plus, if your employer matches contributions, that's free money you should never leave on the table.
Because federal income tax is progressive — the more you earn over the year, the higher percentage of each new dollar goes to taxes. As you pass through tax brackets during the year, each paycheck's federal withholding goes up slightly. This is normal. It's also why your January paycheck looks bigger than your December one — you've crossed into higher brackets as the year goes on.
Disclaimer: This calculator provides estimates only. Actual tax withholding depends on many factors including your specific W-4 elections, pre-tax deductions, local taxes, and tax credits. Not professional tax advice. Consult your HR department or a tax professional for exact figures.