Paycheck Calculator
Estimate your take-home pay from gross salary. See how much of your paycheck goes to taxes, retirement, and other deductions. Plan your budget based on what you actually receive.
Understanding Your Paycheck
Your take-home pay is significantly less than your gross salary due to taxes, retirement contributions, and other deductions. Understanding where your money goes helps you budget effectively and make informed decisions about benefits enrollment.
Common Paycheck Deductions
| Deduction Type | Typical Rate | Pre-Tax? | Notes |
|---|---|---|---|
| Federal Income Tax | 10-37% | N/A | Based on W-4 and brackets |
| State Income Tax | 0-13.3% | N/A | No tax in TX, FL, WA, etc. |
| Social Security (FICA) | 6.2% | N/A | Up to $168,600 (2024) |
| Medicare (FICA) | 1.45% | N/A | No income cap |
| 401(k) Contribution | 3-15% | Yes | Max $23,000 (2024) |
| Health Insurance | $100-500/mo | Yes | Varies by plan |
Federal Tax Brackets (2024)
Federal income tax uses marginal rates—you only pay the higher rate on income above each threshold:
- 10%: $0 - $11,600
- 12%: $11,601 - $47,150
- 22%: $47,151 - $100,525
- 24%: $100,526 - $191,950
- 32%: $191,951 - $243,725
- 35%: $243,726 - $609,350
- 37%: $609,351+
Example Paycheck Breakdown
For a $5,000 monthly gross pay with 6% 401(k) contribution:
- Gross Pay: $5,000
- 401(k) (6%): -$300
- Taxable Income: $4,700
- Federal Tax (~22%): -$1,034
- State Tax (~5%): -$235
- FICA (7.65%): -$383
- Net Pay: ~$3,048
Frequently Asked Questions
How much of my paycheck goes to taxes?
Typically 25-35% of gross pay goes to combined federal, state, and FICA taxes. Pre-tax deductions like 401(k) and health insurance reduce your taxable income, slightly lowering the percentage.
Why is my first paycheck smaller than expected?
First paychecks often include one-time deductions: uniform costs, initial benefit enrollment fees, pro-rated pay if you started mid-period, and withholding calculated for full-year income estimates.
How can I increase my take-home pay?
Adjust your W-4 withholding if you're getting large tax refunds. Maximize pre-tax deductions (401k, HSA) which reduce taxable income. Some people move to states with no income tax (TX, FL, WA, NV, TN, WY, SD, AK).