Paycheck Calculator
Use this calculator to estimate your net pay after various deductions and taxes. Understanding your paycheck is crucial for personal financial planning.
Bi-Weekly (26 pay periods/year) Weekly (52 pay periods/year) Semi-Monthly (24 pay periods/year) Monthly (12 pay periods/year)
Your Estimated Paycheck
Gross Pay:
Pre-Tax Deductions:
Taxable Income:
Social Security Tax (6.2%):
Medicare Tax (1.45%):
Federal Income Tax:
State Income Tax:
Post-Tax Deductions:
Total Deductions:
Net Pay:
Understanding Your Paycheck: A Comprehensive Guide
Your paycheck is more than just a number; it's a detailed breakdown of your earnings and the various deductions that lead to your take-home pay. Understanding each component is vital for budgeting, financial planning, and ensuring accuracy. Our Paycheck Calculator helps you estimate these figures, giving you a clearer picture of your financial situation.
What is Gross Pay?
Gross pay is the total amount of money you earn before any taxes or deductions are taken out. If you're an hourly employee, it's your hourly rate multiplied by the number of hours worked. 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).
Example: If you earn $25/hour and work 80 hours bi-weekly, your gross pay for that period is $2,000. If your annual salary is $60,000 and you're paid bi-weekly, your gross pay per period is $60,000 / 26 = $2,307.69.
Pre-Tax Deductions
These are deductions taken from your gross pay before taxes are calculated. Because they reduce your taxable income, they can lower the amount of federal and state income tax you owe. Common pre-tax deductions include:
- 401(k) or 403(b) contributions: Retirement savings plans.
- Health, dental, and vision insurance premiums: Your share of the cost for these benefits.
- Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs): Accounts for healthcare expenses.
- Commuter benefits: Funds set aside for public transit or parking.
Example: If your gross pay is $2,000 and you contribute $150 to your 401(k) and $50 for health insurance (both pre-tax), your total pre-tax deductions are $200. Your taxable income for federal and state taxes would then be $1,800.
Taxable Income
This is the amount of your gross pay that is subject to federal and state income taxes. It's calculated by subtracting your pre-tax deductions from your gross pay. This figure is crucial because it directly impacts how much income tax you'll pay.
FICA Taxes (Social Security & Medicare)
FICA stands for Federal Insurance Contributions Act. These are mandatory federal taxes that fund Social Security and Medicare programs. Both employees and employers contribute to FICA.
- Social Security Tax: This funds retirement, disability, and survivor benefits. The employee's share is typically 6.2% of your gross wages, up to an annual income limit (which changes yearly).
- Medicare Tax: This funds hospital insurance for the elderly and disabled. The employee's share is 1.45% of all gross wages, with no income limit.
Example: With a gross pay of $2,000:
- Social Security: $2,000 * 0.062 = $124.00
- Medicare: $2,000 * 0.0145 = $29.00
Federal Income Tax
This is a progressive tax levied by the U.S. government on your taxable income. The amount withheld depends on your income level, filing status, and the information you provide on your W-4 form (e.g., number of dependents, additional withholding). The calculator uses a percentage for estimation, but in reality, it's based on tax brackets.
Example: If your taxable income is $1,800 and your estimated federal withholding rate is 15%, your federal income tax would be $1,800 * 0.15 = $270.00.
State Income Tax
Many states also levy an income tax, which varies significantly by state. Some states have no state income tax, while others have flat rates or progressive tax brackets similar to federal taxes. The amount withheld depends on your state's tax laws and your income.
Example: If your taxable income is $1,800 and your estimated state withholding rate is 5%, your state income tax would be $1,800 * 0.05 = $90.00.
Post-Tax Deductions
These deductions are taken from your pay *after* all applicable taxes (FICA, federal, state) have been calculated and withheld. They do not reduce your taxable income. Common post-tax deductions include:
- Roth 401(k) contributions: Retirement savings that are taxed now, but tax-free in retirement.
- Union dues: Fees paid to a labor union.
- Garnishments: Court-ordered deductions for debts like child support or student loans.
- Charitable contributions: Donations made directly from your paycheck.
Example: If you contribute $50 to a Roth 401(k) (post-tax), this amount is deducted after all taxes are calculated.
Net Pay (Take-Home Pay)
Net pay is the final amount of money you receive after all taxes and deductions have been subtracted from your gross pay. This is the money that actually lands in your bank account or is issued as a physical check. It's your true take-home earnings.
Example Summary:
- Gross Pay: $2,000.00
- Pre-Tax Deductions: $200.00
- Taxable Income: $1,800.00
- Social Security Tax: $124.00
- Medicare Tax: $29.00
- Federal Income Tax: $270.00
- State Income Tax: $90.00
- Post-Tax Deductions: $50.00
- Total Deductions: $200 + $124 + $29 + $270 + $90 + $50 = $763.00
- Net Pay: $2,000.00 – $763.00 = $1,237.00
How to Use This Calculator
- Enter Gross Pay per Period: Input your total earnings before any deductions for a single pay period.
- Select Pay Frequency: Choose how often you get paid (e.g., weekly, bi-weekly).
- Enter Tax Withholding Percentages: Provide your estimated federal and state income tax withholding rates. These are often estimates or averages based on your income and filing status.
- Input Pre-Tax Deductions: Add any amounts deducted before taxes, like 401(k) contributions or health insurance premiums.
- Input Post-Tax Deductions: Add any amounts deducted after taxes, such as Roth 401(k) contributions or union dues.
- Click "Calculate Paycheck": The calculator will instantly display a detailed breakdown of your estimated net pay.
Disclaimer: This calculator provides estimates for informational purposes only. Actual paycheck amounts may vary based on specific tax laws, additional deductions, and individual circumstances. Always consult with a financial advisor or tax professional for personalized advice.