How to Calculate Your Net Take-Home Pay
When accepting a salary offer (e.g. $75,000 per year), the most important figure is not your gross compensation, but rather your net take-home salary. Net salary is the liquid money that is deposited into your bank account after mandatory taxes and deductions.
The Path from Gross to Net: Paycheck Deductions
Mandatory paycheck deductions include three primary tax categories:
- Federal Income Tax: Under standard IRS brackets, your income is taxed progressively. Before tax is calculated, a Standard Deduction (Single: $15,400, Married: $30,800 for 2026) is subtracted from your gross earnings to find your taxable income.
- FICA Taxes: Under the Federal Insurance Contributions Act, a flat 6.2% Social Security tax (up to the wage cap) and a 1.45% Medicare tax are deducted, totaling 7.65% in payroll taxes.
- State Income Tax: State tax structures vary. Nine states have no earned wage income tax (e.g. Florida, Texas). Several states charge flat tax rates (~4.5%), while other states use progressive tax brackets (CA, NY) scaling up to 10%+.
Use our calculator to adjust gross salaries, filing statuses, and pay frequencies to see exactly what you can expect on payday.
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