Paycheck & Take-Home Pay Calculator

Calculating your take-home pay involves understanding both your gross income and the deductions that reduce it to your net pay. The largest deductions are usually taxes, which include federal income tax, state income tax, and FICA.

How FICA Works: FICA (Federal Insurance Contributions Act) is a mandatory payroll deduction that funds Social Security and Medicare. It typically takes 7.65% of your gross earnings (6.2% for Social Security up to a wage base limit, and 1.45% for Medicare).

Effective vs. Marginal Tax Rate: Your marginal tax rate is the highest bracket your last dollar of income falls into, while your effective tax rate is the average percentage you actually pay on all your income. This calculator asks for your effective combined rate to provide a more realistic estimate of your take-home pay.

Tips and Taxes: If you receive tips, they are considered taxable income. The IRS requires you to report tips, and they are subject to both income taxes and FICA. Including them in this calculator ensures they are properly factored into your gross and net pay estimates.

W-4 Allowances: Keep in mind that this calculator provides an estimate. Your actual paycheck withholding heavily depends on how you filled out your W-4 form. Changes in deductions or allowances can shift your withholding up or down, affecting your actual net pay.