FICA tax is a federal payroll tax composed of a 6.2% Social Security tax (on income up to the annual limit) and a 1.45% Medicare tax (on all earnings). These taxes fund retirement and healthcare benefits.

Salary to Paycheck Calculator

Q: What's the difference between gross and net pay?

Gross pay is the total amount of money you earn before any deductions are taken out. Net pay, or take-home pay, is the amount you receive after all taxes (Federal, FICA) and deductions (like 401(k), health insurance) are subtracted.

Q: How do pre-tax deductions benefit me?

Pre-tax deductions are subtracted from your gross pay before income taxes are calculated. This lowers your taxable income, which reduces the amount of tax you owe. Common examples include 401(k) contributions, HSA/FSA funds, and health insurance premiums.

Q: How are federal income taxes calculated in this tool?

This calculator uses the 2025 federal income tax brackets. It calculates your taxable income by subtracting pre-tax deductions and the standard deduction from your gross salary, then applies the marginal tax rates progressively for an accurate estimate.

From a job offer to your bank account, your salary goes through a big transformation. This calculator reveals your true take-home pay, or net income, by translating your gross salary into the amount you actually get to keep. By accounting for federal taxes, FICA, and personal deductions like your 401(k) or health insurance, you can budget with confidence, plan for the future, and finally understand where every dollar goes.

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Deductions & Tax Info

How to Use the Paycheck Calculator

Get a clear picture of your net pay in three simple steps:

Step 1: Enter Your Gross Income. Input your salary or wage and select the correct pay period (annually, monthly, hourly, etc.). The calculator automatically converts it to an annual figure for accurate tax calculations.
Step 2: Define Your Work Schedule. Add your typical hours and days worked per week. This ensures the hourly and daily breakdown of your pay is precise. The default is a standard 40-hour, 5-day week.
Step 3: Add Deductions & Tax Details. This is the key to accuracy. In the 'Deductions & Tax Info' section, select your federal tax filing status (e.g., Single, Married Filing Jointly) and enter your total monthly pre-tax deductions. This includes contributions to a 401(k), health insurance premiums, HSA/FSA contributions, and other items that lower your taxable income.

Understanding Your Paycheck: FAQs

What's the difference between gross and net pay?

Gross pay is the total amount of money you earn before any deductions are taken out. It's the "sticker price" of your salary. Net pay, often called take-home pay, is the amount of money you receive in your bank account after all taxes (Federal, Social Security, Medicare) and deductions (like 401(k) contributions, health insurance, etc.) are subtracted. This calculator is designed to turn your gross pay into an accurate net pay estimate.

How do pre-tax deductions benefit me?

Pre-tax deductions are powerful financial tools. They are subtracted from your gross pay before income taxes are calculated. This process, known as lowering your taxable income, directly reduces the amount of tax you owe. Common examples include contributions to a traditional 401(k), Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and health insurance premiums. Using them effectively means you pay less in taxes today while saving for retirement and healthcare expenses tomorrow.

How are federal income taxes calculated in this tool?

This calculator uses the 2025 federal income tax brackets published by the IRS. It first calculates your taxable income by subtracting your pre-tax deductions and the standard deduction for your filing status from your gross annual salary. Then, it applies the marginal tax rates progressively. This means you only pay a certain tax rate on the portion of your income that falls within each specific bracket, ensuring an accurate federal tax estimate.

What are FICA taxes?

FICA tax is a U.S. federal payroll tax that stands for the Federal Insurance Contributions Act. It's actually composed of two separate taxes: Social Security and Medicare. For 2025, the employee Social Security tax rate is 6.2% on income up to the annual limit of $177,300, and the Medicare tax is 1.45% on all of your earnings. Your employer pays a matching amount. These taxes fund retirement and healthcare benefits for current retirees.