Calculate
Paycheck Breakdown
Income Details
Taxes
Deductions
Net Pay Summary
How to Use the Paycheck Calculator
Calculate your take-home pay in just three simple steps:
1. Enter Your Income
Select your pay frequency and enter your hourly rate or annual salary. The calculator automatically adjusts for pay period.
2. Configure Tax Settings
Select your tax filing status and state. Our calculator applies accurate tax rates based on current brackets.
3. Add Deductions
Include retirement contributions, health insurance, and other deductions to see your true take-home pay.
Why Calculate Your Paycheck?
Understanding your paycheck helps with budgeting, financial planning, and ensuring you’re paid correctly:
Budgeting Accuracy
Know exactly how much money you’ll have after taxes and deductions for better financial planning.
Tax Planning
Understand how different tax scenarios affect your take-home pay and plan accordingly.
Salary Negotiations
Compare job offers by understanding the actual take-home pay rather than gross salary.
Retirement Planning
See how retirement contributions impact both your current paycheck and future savings.
A Deep Dive into Common Deductions
Payroll deductions can be categorized as either mandatory or voluntary. Both reduce your gross pay to arrive at your net pay.
Mandatory Deductions
These are deductions that your employer is legally required to withhold from your paycheck. They include:
- Federal Income Tax: The amount withheld is based on the information you provide on your Form W-4.
- State and Local Income Taxes: These vary depending on where you live and work. Some states have no income tax.
- FICA Taxes: This consists of two separate taxes: Social Security and Medicare. Employers and employees both contribute to these funds.
Voluntary Deductions
These are deductions you choose to have taken out of your paycheck. Common examples include:
- Health Insurance Premiums: This covers your portion of the cost for medical, dental, or vision insurance plans.
- Retirement Plan Contributions: These are pre-tax or post-tax contributions to accounts like a 401(k) or 403(b).
- Other Deductions: This can include things like life insurance premiums, union dues, or charitable contributions.
State Taxes and Remote Work: What You Need to Know
The rise of remote and hybrid work has added a layer of complexity to state income taxes. It’s crucial for remote employees to understand their tax obligations to avoid potential penalties.
The Basics of Remote Work Taxation
Generally, you must pay income tax to the state where you reside. However, if you work in a different state than where your employer is located, you may need to navigate the tax laws of both states. Fortunately, federal law prevents two states from taxing the same income, and many states have reciprocal agreements to simplify tax withholding.
“Convenience of the Employer” Rule
A handful of states, including New York, Pennsylvania, and Nebraska, have a “convenience of the employer” rule. This rule states that if you work remotely for your own convenience rather than your employer’s necessity, your income may be taxed by your employer’s state, even if you don’t live there. This can sometimes result in the need to file tax returns in two states.
If you work remotely, especially in a different state from your employer, it’s wise to consult with a tax professional to ensure you’re meeting all your state and local tax obligations.
Frequently Asked Questions
Find answers to common questions about paycheck calculations and tax deductions.
Our calculator uses current tax brackets and formulas to provide accurate estimates. For the current year, we’ve updated all federal and major state tax rates. The results are estimates since actual deductions may vary based on your specific situation.
Gross pay is your total earnings before any taxes or deductions are taken out. Net pay (take-home pay) is the amount you actually receive after all taxes, retirement contributions, insurance premiums, and other deductions have been subtracted from your gross pay.
You should recalculate whenever there’s a change in your income, tax status, or deductions. This includes raises, new jobs, changes in filing status, moving to a new state, or adjusting retirement contributions.
FICA stands for Federal Insurance Contributions Act. These taxes fund Social Security and Medicare programs. For the current year, Social Security tax is 6.2% on income up to the annual limit, and Medicare tax is 1.45% on all wages (with an additional 0.9% for high earners).
State income tax rates vary significantly – from 0% in states like Florida and Texas to over 13% in California. Your state tax burden depends on where you live and work, your income level, and your filing status. Our calculator accounts for these variations.
Increasing retirement contributions reduces your taxable income now and helps build future wealth. However, it also reduces your current take-home pay. Our calculator helps you find the right balance by showing exactly how different contribution levels affect your paycheck.
Common reasons include: higher-than-expected tax withholding, additional deductions you didn’t account for (health insurance, retirement contributions), or incorrect tax filing status. Use our calculator to identify where the differences might be.
Strategies include: contributing to tax-advantaged retirement accounts (401k, IRA), using HSA or FSA accounts for medical expenses, claiming all eligible tax credits, and ensuring your W-4 form accurately reflects your tax situation.
Bi-weekly means you’re paid every two weeks (26 pay periods per year). Semi-monthly means you’re paid twice per month (24 pay periods per year). The difference affects your per-paycheck amount and annual tax calculations.
No, all calculations happen in your browser. We do not see or store any of your financial information. Your privacy is completely protected while using this tool.