Everything you need to know about payroll, taxes, and how our calculator works.
Net pay is calculated by subtracting all mandatory and voluntary deductions from your gross pay. Mandatory deductions include federal income tax, state income tax, and FICA (Social Security and Medicare). Voluntary deductions might include retirement contributions or health insurance premiums.
FICA stands for the Federal Insurance Contributions Act. It's a mandatory payroll deduction that funds Social Security and Medicare. The current rate is 7.65% (6.2% for Social Security and 1.45% for Medicare) for most employees.
The US uses a progressive tax system, meaning you pay different tax rates on different portions of your income. You don't pay the highest rate on all your income, only on the amount that falls within that specific bracket.
Your take-home pay might be lower due to unexpected deductions, such as local taxes, higher state tax rates, or pre-tax deductions like 401(k) contributions and health insurance premiums that aren't accounted for in simplified calculators.
No, this calculator provides estimates for educational purposes. It uses simplified tax brackets and generic state tax rates. Actual payroll calculations depend on your specific W-4 withholdings, local taxes, pre-tax deductions, and other personal factors.
Gross pay is the total amount you earn before any taxes or deductions are taken out. Net pay (or take-home pay) is the amount you actually receive in your paycheck after all deductions.
Federal and state tax brackets are typically updated annually to account for inflation. Our calculator uses simplified estimates based on recent tax year data.
Bonuses are considered supplemental income and are often taxed differently (usually at a flat rate of 22% federally) than regular wages. For a standard paycheck estimate, it's best to calculate your regular salary separately from bonuses.
Pre-tax deductions are amounts taken out of your gross pay before taxes are calculated. Common examples include 401(k) contributions, health insurance premiums, and HSA contributions. These lower your taxable income.
Yes! You can use the 'Download Result as PNG' button on the calculator to save an image of your estimated breakdown to your device for future reference.