Net Salary Calculator

Companion guide: How to Compare Job Offers Beyond Salary

How to Use the Net Salary Calculator

Enter your gross annual salary, pick your state, choose your filing status. Done. The calculator breaks everything down — federal tax, state tax, Social Security, Medicare — and shows you what actually lands in your bank account.

You can toggle between monthly, biweekly, and weekly views depending on how you get paid. And if you're putting money into a traditional 401(k), enter that amount too so the calculator can show how it reduces your taxable income. That number often surprises people.

What Gets Deducted From Your Paycheck

A lot. Honestly, a lot.

Federal income tax is progressive, meaning you do not pay one flat percentage on everything. Your first $11,600 (single filer) is taxed at 10%. The next chunk at 12%. Then 22%, and so on up to 37% for income above $626,350. Most people working regular jobs land somewhere in the 12% or 22% bracket. The brackets are not as scary as they sound once you understand only the income within each bracket gets taxed at that rate.

Social Security takes a flat 6.2% on everything you earn up to $176,100. Hit that cap and the deduction stops for the rest of the year. If you make exactly $176,100 or more, that's $10,918 gone to Social Security.

Medicare is 1.45% on all earnings. No cap. And if you're a higher earner — above $200,000 single or $250,000 married filing jointly — there is an extra 0.9% surtax on top.

State income tax is where things get really interesting. Nine states charge zero: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Meanwhile, California's top rate is 13.3%. North Dakota and Pennsylvania sit well below 5%. Where you live matters more than most people think.

How Filing Status Affects Your Taxes

Your filing status sets your standard deduction and determines where the bracket thresholds land:

• Single — $15,700 standard deduction. The brackets are narrower, so you hit higher rates sooner.
• Married Filing Jointly — $31,400 standard deduction and wider brackets. Basically, more of your combined income gets taxed at lower rates.

For most married couples where both people work, filing jointly saves money. The so-called "marriage penalty" is mostly an issue when both spouses earn high, roughly equal incomes. For everyone else, joint filing is almost always the better deal.

The 401(k) Tax Advantage

Every dollar you put into a traditional 401(k) comes out of your taxable income. If you're in the 22% federal bracket and contribute $10,000, that's roughly $2,200 you're not paying in federal taxes. Plus whatever your state would have taken.

The 2025 limit is $23,500 a year ($31,000 if you're 50 or older). One catch though — 401(k) contributions do not reduce your Social Security or Medicare taxes. Those come out regardless.

Still. If your employer matches any percentage, that is free money. Not contributing at least enough to get the full match is leaving cash on the table.

Why Your State Matters

Same salary. Wildly different take-home pay.

On $100,000 a year:

• Texas (no state income tax): roughly $78,000 in your pocket
• California: state tax alone eats about $4,800, leaving you closer to $73,000
• New York: state takes around $4,500 — and if you live in NYC, tack on another 3-4% for city tax

This is why people relocating for work or going remote should run the numbers for different states. A $90,000 offer in Florida can leave you with more money than $100,000 in California when you do the math.

Understanding Marginal vs. Effective Tax Rates

Two numbers. Both important. People confuse them constantly.

Marginal rate is what you pay on your next dollar of income. If you're in the 22% bracket, each additional dollar you earn gets taxed at 22 cents. This is the number that matters when you're deciding whether to take on extra freelance work or sell some stock.

Effective rate is your total tax bill divided by your total income. Because of the progressive bracket system, this is always lower — usually significantly lower — than your marginal rate. Somebody technically "in the 22% bracket" might only pay an effective federal rate of 12-14%. Big difference.

Frequently Asked Questions

Is this calculator accurate for my exact paycheck?

Close, but your actual paycheck might be slightly different. Things like health insurance premiums, HSA contributions, local taxes, or itemizing deductions instead of taking the standard deduction all affect the final number. Think of this as a solid estimate — not a substitute for your actual pay stub.

Why doesn't my employer withhold the exact right amount?

Because withholding is based on your W-4 form, which is essentially a guess. Many people end up getting a refund (withheld too much) or owing a bit (withheld too little) come tax time. If you're consistently way off in either direction, update your W-4.

Should I aim for a bigger refund or bigger paychecks?

Bigger paychecks. A fat refund means you gave the government an interest-free loan for the whole year. Ideally you adjust withholding so your refund is close to zero — that way the money stays in your account where you can actually use it or invest it.

How do state taxes work if I work remotely in a different state?

Generally you owe tax to the state where you physically do the work. If that's your home, you pay your home state. Some states have reciprocity deals with neighboring states. Remote work tax rules have gotten messy in the last few years and they vary a lot by state, so it's worth checking your specific situation.

Does this include self-employment tax?

No. This is for W-2 employees only. If you are self-employed, you pay both sides of FICA — 15.3% total instead of the 7.65% that W-2 employees see. You also have to deal with quarterly estimated payments. Whole different animal.