How to Calculate Take-Home Pay
By the Calculator.hair team · Updated · 7 min read
Short answer
Take-home pay is gross pay minus pre-tax deductions, federal income tax, Social Security (6.2%), Medicare (1.45%) and state and local tax. For 2026, a single filer earning $75,000 who puts $4,500 into a 401(k) and pays a flat 5% state tax keeps about $54,558 a year, or $2,098 per biweekly paycheck. That is roughly 73% of gross pay.
Key takeaways
- Start from gross pay, subtract pre-tax deductions, then subtract each tax in turn.
- Federal income tax is figured on taxable income: pay minus pre-tax deductions minus the 2026 standard deduction of $16,100 for single filers.
- Social Security takes 6.2% of wages up to $184,500 in 2026, and Medicare takes 1.45% of all wages.
- In the examples below, a single filer keeps about 73% to 86% of gross pay, depending on income, deductions and state.
What is take-home pay?
Take-home pay, also called net pay, is the amount deposited in your bank account after your employer withholds taxes and deductions. Gross pay is the larger figure before anything comes out: your annual salary, or your hourly rate times hours worked.
The gap between the two comes from four kinds of withholding: pre-tax deductions such as a 401(k) or health insurance premiums, federal income tax, FICA taxes (Social Security and Medicare), and state and local income tax where your state has one. Some paychecks also show after-tax deductions such as a Roth 401(k) or union dues, which reduce take-home pay without lowering your taxes.
Our take-home pay calculator runs every step below for any salary, pay frequency and filing status. The rest of this guide shows the math so you can check a pay stub or estimate a job offer by hand.
How do you calculate take-home pay step by step?
Subtract pre-tax deductions from gross pay, figure federal income tax on what remains after the standard deduction, then subtract FICA and state tax from gross pay. In order:
- Gross pay: annual salary, or hourly rate × hours × weeks. The salary calculator converts hourly pay to annual.
- Pre-tax deductions: traditional 401(k), 403(b), HSA and pre-tax health premiums. Subtract them to get your adjusted gross income (AGI) from wages.
- Taxable income: AGI minus the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household in 2026), or minus itemized deductions if larger.
- Federal income tax: apply the 2026 brackets to taxable income, then subtract credits such as the $2,200 child tax credit.
- Social Security: 6.2% of wages up to the $184,500 wage base.
- Medicare: 1.45% of all wages, plus an extra 0.9% on wages over $200,000 for single filers.
- State and local tax: your state's rate applied to its own definition of taxable income.
- Take-home pay: gross pay minus everything above. Divide by your number of paychecks per year.
How much is take-home pay on a $75,000 salary?
A single filer earning $75,000 a year, paid biweekly (26 paychecks), takes home $54,557.50 a year, or $2,098.37 per paycheck. Assumptions: 2026 federal rules, no dependents, $4,500 a year to a traditional 401(k) (6% of pay), the standard deduction, and a flat 5% state income tax on AGI with no city tax.
The 401(k) contribution lowers AGI to $70,500. Subtracting the $16,100 standard deduction leaves $54,400 of taxable income. Federal tax is 10% of the first $12,400 ($1,240), plus 12% of the next $38,000 ($4,560), plus 22% of the last $4,000 ($880), for $6,680. The 401(k) does not reduce FICA, so Social Security is 6.2% of the full $75,000 ($4,650) and Medicare is 1.45% ($1,087.50). State tax at 5% of $70,500 is $3,525.
| Line | Per year | Per biweekly paycheck |
|---|---|---|
| Gross pay | $75,000.00 | $2,884.62 |
| 401(k) contribution | -$4,500.00 | -$173.08 |
| Federal income tax | -$6,680.00 | -$256.92 |
| Social Security (6.2%) | -$4,650.00 | -$178.85 |
| Medicare (1.45%) | -$1,087.50 | -$41.83 |
| State income tax (5%) | -$3,525.00 | -$135.58 |
| Take-home pay | $54,557.50 | $2,098.37 |
How does federal income tax withholding work?
Federal income tax is progressive: each rate applies only to the slice of taxable income inside its bracket, not to your whole income. In the example above the top bracket reached is 22%, but the federal tax of $6,680 is only 8.9% of the $75,000 salary. That 22% is the marginal rate, the rate on your next dollar of income.
Your employer estimates this tax from the Form W-4 you filed and the IRS withholding tables in Publication 15-T. Withholding is an estimate of the tax you will owe when you file. If too much is withheld you get a refund; if too little, you owe at filing. Filing status changes the result a lot: the same $75,000 earner filing jointly as a one-income married couple owes $4,100 of federal tax instead of $6,680, because the standard deduction and brackets are twice as wide.
For a full return estimate including other income, deductions and credits, use the income tax calculator.
| 2026 rate | Single taxable income | Married filing jointly taxable income |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
What percentage of my paycheck goes to taxes?
With no state income tax and no pre-tax deductions, a single filer in 2026 pays about 14% of gross pay in federal and FICA tax at $40,000, 21% at $100,000 and 26% at $200,000. State tax adds roughly 0% to 10% more depending on where you live; nine states have no tax on wages.
These figures come from our take-home pay calculator with single filing status, biweekly pay, no dependents and the standard deduction.
| Salary | Federal income tax | Social Security + Medicare | Annual take-home | Per biweekly check | Share taken |
|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $34,320 | $1,320.00 | 14.2% |
| $50,000 | $3,820 | $3,825 | $42,355 | $1,629.04 | 15.3% |
| $60,000 | $5,020 | $4,590 | $50,390 | $1,938.08 | 16.0% |
| $75,000 | $7,670 | $5,737.50 | $61,592.50 | $2,368.94 | 17.9% |
| $100,000 | $13,170 | $7,650 | $79,180 | $3,045.38 | 20.8% |
| $150,000 | $24,734 | $11,475 | $113,791 | $4,376.58 | 24.1% |
| $200,000 | $36,734 | $14,339 | $148,927 | $5,727.96 | 25.5% |
How do pay frequency and deductions change each paycheck?
Pay frequency changes the size of each check, not your annual take-home. The $75,000 example nets $54,557.50 a year whether that arrives as 52 weekly checks of $1,049.18, 26 biweekly checks of $2,098.37, 24 semi-monthly checks of $2,273.23 or 12 monthly checks of $4,546.46. Biweekly pay produces two months each year with three paychecks, which is useful to know when budgeting.
Pre-tax deductions cost you less than their face value. In the example, each extra $1,000 put into the 401(k) lowers federal tax by $220 (the 22% marginal rate) and state tax by $50, so take-home pay falls by only about $730. Raises work the other way: on a salary increase, you keep the raise minus your marginal federal, FICA and state rates.
Why might my real paycheck differ from the estimate?
Estimates and pay stubs differ mainly because of W-4 choices, state rules and benefits that a simple calculator treats as flat. Common causes:
- Extra withholding or a multiple-jobs adjustment on your W-4.
- State taxes with their own brackets, deductions and credits rather than one flat rate.
- Local taxes such as city or county wage taxes.
- Post-tax deductions: Roth 401(k), life insurance, union dues, wage garnishments.
- Bonuses and supplemental wages, which employers often withhold at a flat 22% federal rate.
- Hitting the Social Security wage base late in the year, which raises take-home pay for the remaining checks.
Calculators in this guide
Frequently asked questions
How do I calculate my paycheck by hand?
Divide your annual salary by the number of paychecks, subtract pre-tax deductions, then subtract federal income tax, 6.2% Social Security, 1.45% Medicare and your state tax. The take-home pay calculator does the federal bracket math for you.
How much is $75,000 a year after taxes?
For a single filer in 2026 with no pre-tax deductions and no state income tax, $75,000 is about $61,593 a year after federal income tax and FICA, or $2,368.94 per biweekly paycheck. With a 6% 401(k) contribution and a 5% state tax it drops to about $54,558.
What is the fastest way to estimate take-home pay?
Multiply gross pay by 0.75 to 0.80 for a middle-income single filer in a state with an income tax, or by 0.80 to 0.85 in a state without one. For an exact figure, use a calculator with your filing status and deductions.
Does a 401(k) contribution reduce Social Security and Medicare tax?
No. Traditional 401(k) contributions reduce federal and most state income tax, but Social Security and Medicare are still figured on the full wage. Health premiums paid through a Section 125 plan do reduce FICA.
Is take-home pay the same as net income?
For an employee, yes. Net pay or take-home pay is gross wages minus all withholding and deductions. On a business income statement, net income means revenue minus all expenses, which is a different measure.
This guide is for education and is not financial, tax or legal advice. Confirm figures with a qualified professional or your lender.