Salary

Salary Calculator

Federal, state, FICA, and pre-tax 401(k). See exactly where your gross goes — annual, monthly, and bi-weekly.

How the salary calculator works

Every paycheck starts with your gross pay — your agreed salary before anything is removed. From that number, your employer withholds a stack of taxes and benefit contributions, leaving your net pay (take-home pay) to hit your bank account. The gap between the two surprises most people: on a $75,000 salary you might deposit anywhere from $51,000 to $58,000 per year depending on where you live, how you file, and whether you contribute to a 401(k).

The deductions fall into three buckets. First, federal income tax is calculated using the IRS progressive bracket system and your filing status. The 2026 standard deduction ($14,600 single / $29,200 married filing jointly) is subtracted from gross income before brackets are applied. Second, FICA — Social Security and Medicare — is a flat percentage taken before most pre-tax benefit elections. Third, state income tax varies dramatically: nine states collect none at all, while California tops out at 13.3%. Finally, any pre-tax 401(k), HSA, or FSA contributions you make reduce your federal (and usually state) taxable income, effectively giving you an instant return equal to your marginal tax rate.

State of residence is often the single biggest lever you have on take-home pay. Two workers earning identical salaries — one in Texas, one in California — can see a $5,000–$10,000+ annual difference in net pay purely because of state income tax. This calculator applies published 2026 (or latest available) state brackets so the comparison is as accurate as possible without knowing your full tax picture.

The formula

At its core, the deduction chain is straightforward:

net = gross − federal income tax − state income tax − FICA − pre-tax deductions

FICA breakdown (employee share, 2026):
  Social Security  = 6.2%  × min(gross, $176,100)   → max $10,918.20/yr
  Medicare         = 1.45% × gross                   → no cap
  Add'l Medicare  = 0.90%  × max(gross − $200,000, 0) [single filer]

Federal income tax:
  1. Subtract standard deduction ($14,600 single / $29,200 MFJ)
  2. Subtract pre-tax 401(k) / HSA / FSA contributions
  3. Apply 2026 brackets: 10% / 12% / 22% / 24% / 32% / 35% / 37%

State income tax:
  Applied to (gross − pre-tax deductions) using state brackets
  Nine states: $0  (AK, FL, NV, NH, SD, TN, TX, WA, WY)

Worked example — $75,000 gross, single filer

To illustrate how much state taxes move the needle, here is the same $75,000 salary compared across three states. All figures use the 2026 standard deduction, no pre-tax deductions, and biweekly pay (26 periods).

                        Texas       California    New York
Gross annual           $75,000      $75,000       $75,000
Federal income tax     −$8,307      −$8,307       −$8,307
FICA (SS + Medicare)   −$5,738      −$5,738       −$5,738
State income tax            $0      −$5,481       −$4,267
                       ─────────    ─────────     ─────────
Net annual             $60,956      $55,474       $56,688
Biweekly take-home     $2,344       $2,134        $2,180

State tax saves TX worker ~$5,500/yr vs CA and ~$3,600/yr vs NY.

These are estimates — actual withholding depends on W-4 elections, local taxes (New York City adds up to 3.876%), and employer-specific benefit deductions. Use the calculator above to dial in your exact situation.

When to use this calculator

Comparing job offers in different states. A $90k offer in Seattle can beat a $95k offer in San Francisco once state and local taxes are applied.
Negotiating a raise. Know your current net pay so you can set a concrete target — e.g. "I need at least $200 more per biweekly paycheck."
Evaluating a relocation. Moving from California to Nevada? Model both scenarios side by side to quantify the net-pay benefit before signing a lease.
Modeling pre-tax 401(k) contributions. Increasing your contribution rate by 2% costs less take-home than you think once the tax savings are factored in.
Converting hourly to salary equivalent. Enter an annualized hourly rate (hourly × 2,080) to compare contractor and W-2 compensation on an apples-to-apples basis.

Key concepts

Gross pay vs net pay: Gross pay is your salary before deductions. Net pay is what you actually receive. The difference funds federal and state taxes plus benefit programs.
FICA (Federal Insurance Contributions Act): A mandatory payroll tax split between Social Security (6.2%, capped at the annual wage base) and Medicare (1.45%, uncapped). Your employer matches both portions — so the true cost to your employer is 7.65% on top of your salary.
W-4 withholding: The W-4 form you file with your employer tells them how much federal income tax to withhold from each paycheck. It does not change your actual tax liability — only the timing. Over-withholding results in a refund; under-withholding results in a bill at tax time.
Pre-tax deductions (401k, FSA, HSA): These elections reduce your federally taxable income before brackets are applied. A $6,000 401(k) contribution in the 22% bracket saves you $1,320 in federal income tax — meaning the out-of-pocket cost is only $4,680. FSA and HSA contributions work the same way.
Marginal vs effective tax rate: Your marginal rate is the bracket your last dollar of income falls into. Your effective rate is total tax divided by total income — always lower than marginal because lower income dollars are taxed at lower rates. A $75k earner in the 22% bracket pays an effective federal rate closer to 13–15%.

Common mistakes when estimating take-home pay

Ignoring state income tax. Many people mentally subtract only federal tax and FICA, forgetting that state tax can easily add another 4–10% in high-tax states.
Forgetting FICA in the estimate. FICA (7.65%) is not optional and applies from dollar one of earned income. Omitting it causes you to overestimate take-home by thousands per year.
Confusing annual working hours. Most quick estimates use 2,080 hours (52 × 40). The more precise figure is 2,087 hours because calendar years average 365.25 days. For hourly-to-salary conversions at precise pay rates, the difference matters.
Not accounting for pre-tax deductions. If your employer offers a 401(k) match or HSA contributions, running take-home estimates without modeling those deductions overstates your paycheck and understates the value of the benefit.
Assuming bonuses are taxed the same as salary. Employers withhold federal tax on bonuses at the 22% supplemental rate (not your marginal rate), which can leave you surprised either way — under-withheld if your bracket is higher, or over-withheld if it is lower. Your final liability is settled on your tax return.

Frequently asked questions

What's the difference between gross and net pay?

Gross pay is your salary before any deductions — the number on your offer letter or employment contract. Net pay (take-home pay) is what is deposited into your bank account after federal income tax, state income tax, FICA (Social Security and Medicare), and any pre-tax benefit contributions (401k, HSA, FSA) are subtracted. The gap between the two is typically 20–35% of gross income for most US workers.

How does state income tax affect my take-home pay?

Nine US states have no broad-based income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. In these states your take-home is meaningfully higher on the same gross salary. High-tax states like California (top rate 13.3%) and New York (top rate 10.9%) can reduce take-home by $5,000–$15,000+ per year on a six-figure salary compared to a no-tax state. State tax is often the biggest variable when comparing compensation across locations.

How is a bonus taxed?

The IRS classifies bonuses as supplemental wages. Employers withhold federal tax on bonuses at a flat 22% supplemental rate (37% on amounts exceeding $1 million in the same year) rather than running them through normal paycheck withholding tables. Your actual tax on the bonus is your regular marginal rate — withholding is just a prepayment that gets reconciled when you file. State withholding on bonuses varies by state.

What are pre-tax deductions and how do they help?

Pre-tax deductions — traditional 401(k) contributions, HSA contributions, and FSA elections — are subtracted from your gross pay before federal income tax (and usually state income tax) is calculated. This reduces your taxable income and the tax you owe. For example, contributing $500/month to a 401(k) in the 22% federal bracket costs only about $390 in take-home pay because you save $110 in federal income tax. FICA is still assessed on your full gross wages before these deductions.

How do I convert an hourly rate to an annual salary?

Multiply your hourly rate by 2,080 — the standard number of paid hours in a year based on 52 weeks at 40 hours per week. For greater precision, use 2,087 hours (365.25 days ÷ 7 × 40), which accounts for the leap-year averaging in a calendar year. Examples: $20/hr ≈ $41,600/yr · $25/hr ≈ $52,000/yr · $50/hr ≈ $104,000/yr.

What is the FICA tax and who pays it?

FICA funds Social Security and Medicare. In 2026, employees pay 6.2% for Social Security on wages up to the $176,100 wage base (maximum $10,918.20) and 1.45% for Medicare on all wages, with an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly). Employers match the base 6.2% and 1.45% portions. If you are self-employed, you pay both halves — 15.3% — though half is deductible on your income tax return.

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Disclaimer: This calculator provides estimates for informational purposes only and does not constitute tax, legal, or financial advice. Results are based on 2026 IRS brackets and published state rates; actual withholding may differ based on your W-4 elections, local taxes, employer benefit plans, and individual tax circumstances. Consult a qualified tax professional for advice specific to your situation.