Paycheck Calculator
Use this calculator to estimate your net pay per pay period after common deductions and taxes. Understanding your paycheck components is crucial for financial planning.
Understanding Your Paycheck
A paycheck is more than just the money you earn; it's a detailed breakdown of your compensation, including your gross earnings, various deductions, and ultimately, your net pay. Understanding each component is vital for managing your personal finances and ensuring your employer is withholding the correct amounts.
Gross Pay
Your gross pay is the total amount of money you earn before any deductions are taken out. If you're an hourly employee, this is typically calculated by multiplying your hourly rate by the number of hours you worked in a pay period. For salaried employees, it's your annual salary divided by the number of pay periods in a year (e.g., 26 for bi-weekly, 12 for monthly).
Pre-tax Deductions
These are amounts subtracted from your gross pay before taxes are calculated. Because they reduce your taxable income, they can lower the amount of income tax you owe. Common pre-tax deductions include:
- 401(k) or 403(b) Contributions: Money you contribute to a retirement plan.
- Health Insurance Premiums: Your share of the cost for health, dental, or vision insurance.
- Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): Funds set aside for healthcare or dependent care expenses.
Taxes
Taxes are a significant portion of paycheck deductions. They are generally categorized into federal, state, and local income taxes, as well as FICA taxes.
- Federal Income Tax: This tax is levied by the U.S. government based on your income, filing status, and the allowances you claim on your W-4 form. The amount withheld can vary significantly.
- State Income Tax: Many states also levy an income tax. The rates and rules vary widely by state, with some states having no income tax at all.
- FICA Taxes (Social Security and Medicare): These are federal taxes that fund Social Security and Medicare programs.
- Social Security Tax: As of 2024, this is 6.2% of your gross pay, up to an annual wage base limit ($168,600 for 2024).
- Medicare Tax: This is 1.45% of all your gross pay, with no wage base limit. An additional Medicare tax of 0.9% applies to wages over certain thresholds ($200,000 for single filers). For simplicity, our calculator uses the standard 1.45%.
Post-tax Deductions
These deductions are taken out of your pay after all applicable taxes have been calculated and withheld. They do not reduce your taxable income. Examples include:
- Roth 401(k) Contributions: Unlike traditional 401(k)s, these are funded with after-tax dollars.
- Union Dues: Fees paid to a labor union.
- Wage Garnishments: Court-ordered deductions for debts like child support or unpaid taxes.
- Charitable Contributions: Donations made directly from your paycheck.
Net Pay
Your net pay, also known as "take-home pay," is the amount of money you actually receive after all pre-tax deductions, taxes, and post-tax deductions have been subtracted from your gross pay. This is the money that gets deposited into your bank account or paid to you via check.
How to Use the Calculator
Simply enter your gross pay per pay period, any pre-tax and post-tax deductions, and your estimated federal and state income tax percentages. The calculator will then provide an estimate of your net pay, along with a breakdown of the major deductions. Remember that tax percentages are estimates; your actual withholding may vary based on your W-4 elections and specific tax situation.
Estimated Paycheck Breakdown
Gross Pay: $${grossPay.toFixed(2)} Pre-tax Deductions: $${preTaxDeductions.toFixed(2)} Federal Income Tax: $${federalIncomeTax.toFixed(2)} State Income Tax: $${stateIncomeTax.toFixed(2)} Social Security Tax (FICA): $${socialSecurityTax.toFixed(2)} Medicare Tax (FICA): $${medicareTax.toFixed(2)} Post-tax Deductions: $${postTaxDeductions.toFixed(2)}Total Deductions: $${totalDeductions.toFixed(2)} Net Pay (Take-Home): $${netPay.toFixed(2)} `; }