Take-home pay, or net pay, is significantly lower than gross salary due to deductions such as federal and state taxes, FICA taxes, and other voluntary contributions. For 2026, federal tax rates will range from 10% to 37%, and individuals can maximize their take-home pay by contributing to pre-tax retirement accounts, utilizing Health Savings Accounts, adjusting W-4 withholdings, and considering relocation to no-income-tax states. A calculator is available to estimate take-home pay based on various inputs such as salary, state, and filing status.
Your salary and your take-home pay are two very different numbers. Between federal taxes, state taxes, Social Security, Medicare, and any deductions you’ve elected, your actual paycheck can be 25-35% less than your gross salary. This calculator shows you exactly what to expect.
What Is Take-Home Pay?
Take-home pay—also called net pay—is the amount that actually hits your bank account after all deductions. It’s your gross salary minus federal income tax, state income tax (if applicable), FICA taxes (Social Security and Medicare), and any voluntary deductions like retirement contributions or health insurance.
What Gets Deducted from Your Check?
Federal Income Tax The biggest bite. Your federal tax rate depends on your income and filing status. The U.S. uses a progressive tax system, meaning higher portions of your income are taxed at higher rates. For 2026, brackets range from 10% to 37%.
State Income Tax Varies dramatically by state. Nine states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). Others range from around 3% to over 13% (California).
FICA Taxes (Social Security + Medicare) These are fixed percentages that everyone pays:
- Social Security: 6.2% (on income up to $168,600 in 2025)
- Medicare: 1.45% (no income cap)
- Total: 7.65%
Pre-Tax Deductions (Reduce Your Taxable Income)
- 401(k) contributions (2025 limit: $23,500)
- HSA contributions (2025 limit: $4,300 individual / $8,550 family)
- Healthcare FSA (2025 limit: $3,300)
- Dependent Care FSA (2025 limit: $5,000)
- Health insurance premiums
Post-Tax Deductions
- Wage garnishments
- Roth 401(k) contributions
- Some insurance premiums
- Union dues
How to Use the Calculator
Basic Mode:
- Enter your annual salary (or toggle to hourly wage)
- Select your pay frequency (weekly, bi-weekly, semi-monthly, monthly)
- Choose your state
- Select your filing status (single, married filing jointly, head of household)
- Click “Calculate Take-Home Pay”
Advanced Mode: Add retirement contributions, HSA/FSA amounts, insurance premiums, and other deductions for a more accurate estimate.
Example: $75,000 Salary in Arizona
Let’s say you earn $75,000 annually, paid bi-weekly, filing single in Arizona:
| Deduction | Annual | Per Paycheck |
|---|---|---|
| Gross Pay | $75,000 | $2,884.62 |
| Federal Tax | ~$9,500 | ~$365.38 |
| State Tax (AZ) | ~$1,875 | ~$72.12 |
| Social Security | $4,650 | $178.85 |
| Medicare | $1,088 | $41.85 |
| Take-Home Pay | ~$57,887 | ~$2,226.42 |
That’s about 77% of your gross salary—before any 401(k) or insurance deductions.
How to Increase Your Take-Home Pay
1. Max out pre-tax retirement contributions Every dollar you put in a traditional 401(k) reduces your taxable income. Contributing $23,500 at a 22% tax bracket saves you $5,170 in federal taxes.
2. Use your HSA If you have a high-deductible health plan, HSA contributions are triple tax-advantaged: tax-free going in, growing, and coming out (for medical expenses).
3. Review your W-4 withholdings If you’re getting a large tax refund every year, you’re giving the government an interest-free loan. Adjust your W-4 to keep more in each paycheck.
4. Consider your state If you’re relocating or remote, living in a no-income-tax state can add thousands to your annual take-home pay.
Frequently Asked Questions
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