How to Calculate Your Take-Home Pay

Learn the steps from gross pay to net pay: federal tax, FICA, state tax, and deductions.

Take-home pay, also called net pay, is what remains after taxes and deductions come out of your gross pay. To estimate it, start with your gross pay for the pay period and work through each deduction in order.

Step 1: Subtract pre-tax deductions

Contributions to a traditional 401(k), health insurance premiums, and HSA deposits reduce the income that federal tax applies to.

Step 2: Federal income tax

Subtract the standard deduction from your annual income, then apply the tax brackets. Only the income inside each bracket is taxed at that bracket's rate.

Step 3: Social Security and Medicare

Social Security is 6.2% of wages up to an annual limit, and Medicare is 1.45% of all wages. High earners pay an additional 0.9% Medicare tax.

Step 4: State and local tax

Nine states have no wage income tax. The rest vary widely, and some cities add their own tax. Pick your state in our paycheck calculator to include it.

Updated October 2026. For information only, not tax advice.