# Paycheck Calculator

Calculate your take-home pay after federal taxes, state taxes, Social Security, and Medicare. Free paycheck calculator for W-2 employees.

## What this calculates

Estimate your take-home pay after all deductions. Enter your gross pay, pay frequency, filing status, and deductions to see how much of your paycheck you actually bring home.

## Inputs

- **Gross Pay Per Period** ($) — min 0 — Your pay before any deductions.
- **Pay Frequency** — options: Weekly, Bi-weekly (every 2 weeks), Semi-monthly (twice per month), Monthly — How often you get paid.
- **Filing Status** — options: Single, Married Filing Jointly, Head of Household — Your tax filing status.
- **State Income Tax Rate** (%) — min 0, max 15 — Your state income tax rate (0% for states with no income tax).
- **401(k) Contribution** (%) — min 0, max 100 — Percentage of gross pay contributed to 401(k).

## Outputs

- **Take-Home Pay (Per Period)** — formatted as currency — Your estimated pay after all deductions.
- **Annual Take-Home Pay** — formatted as currency — Estimated annual net income.
- **Total Deductions (Per Period)** — formatted as currency — Sum of all taxes and deductions per pay period.
- **Effective Tax Rate** — formatted as percentage — Total deductions as a percentage of gross pay.

## Details

Understanding your take-home pay is essential for budgeting and financial planning. Your gross pay is reduced by several mandatory deductions before you receive your paycheck.

Federal income tax is calculated based on your taxable income and tax bracket. The U.S. uses a progressive tax system, meaning higher portions of income are taxed at higher rates. Social Security tax is 6.2% of gross wages up to the annual cap ($168,600 in 2024). Medicare tax is 1.45% with an additional 0.9% on wages over $200,000.

Pre-tax deductions like 401(k) contributions reduce your taxable income, effectively giving you a tax break on retirement savings. For example, contributing 6% to a 401(k) on a $91,000 salary saves about $1,200 in federal taxes annually while building your retirement fund.

## Frequently Asked Questions

**Q: Why is my take-home pay so much less than my salary?**

A: Your gross pay is reduced by federal income tax (10-37%), state income tax (0-13%), Social Security (6.2%), Medicare (1.45%), and any pre-tax deductions like 401(k), health insurance, and HSA contributions. For a typical single filer, total deductions range from 25-40% of gross pay. This is why financial planning should always be based on net (take-home) pay, not gross salary.

**Q: How do pre-tax deductions save me money?**

A: Pre-tax deductions like 401(k) contributions, health insurance premiums, and FSA/HSA contributions are subtracted from your pay before taxes are calculated. This reduces your taxable income. For someone in the 22% federal bracket, every $100 contributed to a 401(k) only reduces take-home pay by about $78 because you save $22 in federal taxes (plus state tax savings). This makes pre-tax deductions extremely efficient for retirement saving and healthcare costs.

**Q: What is the difference between gross and net pay?**

A: Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you actually receive after federal taxes, state taxes, FICA (Social Security and Medicare), and any voluntary deductions are subtracted. Your annual salary is your gross pay. When budgeting, always use net pay. If you are offered a new job, calculate the net pay to make a meaningful comparison.

**Q: How accurate is this paycheck calculator?**

A: This calculator provides a reasonable estimate using simplified tax brackets and standard deduction rates. Actual paychecks may differ due to progressive tax bracket calculations, specific state tax rules, local taxes, additional withholdings, health insurance premiums, and other employer-specific deductions. For precise figures, refer to your actual pay stub or use your employer's payroll portal.

**Q: Do I pay taxes on overtime pay?**

A: Yes, overtime pay is taxed the same as regular income. It is added to your total gross pay and taxed according to your tax bracket. The common misconception that overtime is taxed at a higher rate occurs because higher total pay in a pay period may push some income into a higher marginal tax bracket. However, tax withholding adjusts over the year, and you may receive a refund if too much was withheld.

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Source: https://vastcalc.com/calculators/finance/paycheck
Category: Finance
Last updated: 2026-04-21