What sits between your salary and your bank account
Four things reduce a US salary before it reaches you, and they behave differently from one another. Federal income tax is progressive, so it rises in steps. Social Security is a flat 6.2% that stops entirely above $184,500. Medicare is a flat 1.45% with no ceiling at all. State income tax depends on where you work, and in nine states is simply zero.
take-home = gross salary − pre-tax contributions − federal income tax − FICA − state income taxWhy the share you keep does not fall smoothly
It is tempting to assume that higher pay always means keeping a smaller proportion. It mostly does, but not evenly. Once wages pass the Social Security wage base, that 6.2% stops applying to every additional dollar, so the effective rate can flatten or even dip slightly before federal brackets pull it back up. Watching the percentage in the result panel as you change the salary makes this visible.
Worked example · $85,000, single filer, paid biweekly
- $85,000 gross, less the $16,100 standard deduction.
- Federal income tax is charged across the 10%, 12% and 22% bands.
- Social Security and Medicare are charged on the full gross, not on taxable income.
- The remainder is divided by 26 to show what each paycheck is worth.
Using this when comparing offers
Two offers with the same headline salary are not equivalent if they are in different states, or if one comes with a stronger pre-tax benefits package. Run each one through the calculator, note the annual take-home rather than the gross, and then look separately at what the pre-tax contributions are buying you. For the underlying mechanics, the gross pay vs. net pay guide walks through each deduction in turn.
What’s included, and what isn’t
Every figure this calculator produces is an estimate. Here is exactly what it accounts for, and what it does not.
What’s included
- Federal income tax, using the published brackets and standard deduction for your filing status.
- Employee Social Security at 6.2%, capped at the annual wage base.
- Employee Medicare at 1.45%, plus Additional Medicare Tax where it applies.
- Any pre-tax contributions you enter, applied to federal taxable income only.
- State income tax for the nine states that levy none on wages — a verified zero, not an omission.
- Conversion of the annual result into monthly, weekly and per-paycheck equivalents.
What’s not included
- State income tax outside the states listed as levying none on wages.
- County, city and other local income taxes.
- Tax credits, itemised deductions and above-the-line adjustments.
- Employer benefits, insurance premiums and post-tax deductions.
- Form W-4 adjustments such as dependants, other income or extra withholding.
- Bonuses, commission and overtime, which payroll often withholds at a separate supplemental rate.
- Multiple jobs, a working spouse's income, and mid-year pay changes.
What this calculator assumes
- Uses the federal standard deduction for the selected filing status and tax year.
- Assumes W-2 employment at one job for the full calendar year.
- Pre-tax contributions reduce federal taxable income but not Social Security or Medicare wages.
- Social Security stops at the $184,500 wage base for 2026.
- Additional Medicare Tax follows the taxpayer's liability threshold for their filing status.
Sources
Every rate and threshold above is transcribed from a primary source and re-checked on the date shown.
Frequently asked questions
What is the difference between gross pay and take-home pay?
Gross pay is the headline figure in your offer letter, before anything is deducted. Take-home pay is what actually reaches your bank account after income tax, payroll taxes and any deductions your employer takes. The gap is usually between a fifth and a third of gross pay, depending on income, filing status and where you work.
How much of my salary should I expect to keep?
There is no single answer, which is why this calculator shows the percentage alongside the amount. Federal income tax rises progressively with income, while Social Security stops at the annual wage base — so the share you keep does not fall in a straight line as pay increases.
Do pre-tax contributions increase my take-home pay?
No. A traditional 401(k) contribution reduces your tax, but it reduces your take-home pay by more than it saves, because the money goes into the retirement account rather than your bank account. What it does improve is your total compensation position.
Why do two people on the same salary keep different amounts?
Filing status changes both the standard deduction and the bracket thresholds. Work state changes whether state income tax applies at all. Pre-tax benefit elections change taxable income. Pay frequency changes the size, though not the annual total, of each paycheck.
Is my state included?
State income tax is calculated for the 9 states that levy none on wages, where zero is the correct answer. Every other state appears in the list but is excluded until its 2026 schedule has been transcribed from that state's own revenue department.