Net Income Calculator
Calculate your actual take-home pay after taxes and deductions. Enter your gross income, tax rates, and deductions to see exactly how much you keep from each paycheck. Understand the gap between gross and net income for better budgeting.
Net income is your gross income minus all taxes and deductions -- it represents the money that actually reaches your bank account. Understanding the difference between gross and net income is critical for budgeting, because your spending power is determined by your net income, not the salary figure on your offer letter.
The major deductions from gross income include federal income tax (10-37% marginal rate, but your effective rate is usually much lower), state income tax (0-13.3% depending on state), FICA taxes (7.65% for Social Security and Medicare), and voluntary deductions like 401(k) contributions and health insurance premiums.
For someone earning $75,000 gross with a 15% effective federal rate, 5% state rate, and $3,000 in other deductions, the net income is approximately $57,000 -- about 76% of gross. This means roughly 24 cents of every dollar goes to taxes and deductions. Higher earners typically see a larger gap between gross and net due to progressive tax brackets.