Take-home pay
Turn a gross salary into the number that actually lands in your account. Federal brackets, social security, Medicare, a flat state rate and your own pre-tax and post-tax deductions are applied in the order payroll applies them, and the marginal bracket is shown separately from the effective rate.
| Line | Annual | Per period |
|---|---|---|
| Gross salary | $85,000 | $3,269 |
| Pre-tax deferral (6.0%) | −$5,100 | −$196.15 |
| Federal income tax | −$8,748 | −$336.46 |
| FICA — social security | −$5,270 | −$202.69 |
| FICA — Medicare | −$1,233 | −$47.40 |
| State income tax | −$3,995 | −$153.65 |
| Post-tax deductions | −$1,800 | −$69.23 |
| Take-home | $58,855 | $2,264 |
| Retention rate | 69.24% | Share of gross kept |
State tax is modelled as a flat rate on the federal taxable base. Nine states levy no wage tax; a few tax only interest and dividends.
gross × deferral · reduces income tax, not FICA
brackets(gross − pre-tax − deduction) · progressive, 10% to 37%
6.2% × min(gross, 184,500) + 1.45% gross + 0.9% excess · social security, Medicare, surtax
gross − pre-tax − federal − FICA − state − post-tax · the amount that reaches the bank
A clear path from inputs to results.
Your salary is not your pay. Federal brackets, social security, Medicare, state tax and your own pre-tax and post-tax deductions each take a slice in a fixed order, and the order matters: a 401(k) deferral reduces income tax but not FICA. This calculator applies the deductions in payroll order and separates the marginal bracket from the effective rate, because those two numbers are routinely confused.
How to use
- Enter your gross annual salary.
- Choose the filing status that matches your W-4.
- Set the pre-tax deferral rate — traditional 401(k), 403(b) or HSA.
- Enter an approximate state income tax rate; nine states have none.
- Add any monthly post-tax deductions such as health premiums or a Roth 401(k).
- Pick how often you are paid to see the per-period figure.
The formula
Reference: IRC §1 (2026 brackets, IRS Rev. Proc. 2025-32); IRC §3101 (FICA); IRS Publication 15 (2026), social-security wage base $184,500.
Worked example
$120,000 married filing jointly, 8% deferral, 4.5% state, $400/mo post-tax
- Gross salary $120,000.
- Married filing jointly: $32,200 standard deduction (2026).
- 8% pre-tax deferral, 4.5% state rate, $400/month post-tax deductions.
- 1
Pre-tax deferral: 120,000 × 0.08 = $9,600. Taxable base: $110,400.
- 2
Federal taxable: 110,400 − 32,200 = $78,200.
- 3
Federal tax: 24,800 × 10% = $2,480, then (78,200 − 24,800) × 12% = $6,408. Total $8,888.
- 4
FICA: 120,000 × 6.2% = $7,440 social security, plus 120,000 × 1.45% = $1,740 Medicare. Total $9,180.
- 5
State: 110,400 × 4.5% = $4,968. Post-tax deductions: 400 × 12 = $4,800.
- 6
Take-home: 120,000 − 9,600 − 8,888 − 9,180 − 4,968 − 4,800 = $82,564, or $6,880.33 a month.
Annual take-home $82,564 · $6,880.33/month · $3,175.54 bi-weekly · 68.80% retention.
Interpreting the result
Retention is 68.80%, but the marginal bracket is only 12%: the next dollar earned is taxed at 12% federally, not at the 31.4% that total deductions represent. That gap is the whole reason a raise never reduces take-home pay, and why the effective rate falls as income rises through the lower brackets before flattening out.
Assumptions & limitations
- Federal brackets and the standard deduction are the 2026 figures (Rev. Proc. 2025-32). The TCJA rates were made permanent by the 2025 OBBBA, so no sunset scenario is modelled.
- Social security is withheld at 6.2% up to the $184,500 wage base (2026); Medicare is 1.45% with the 0.9% additional tax above $200,000 single or $250,000 joint.
- State tax is a flat rate on the federal taxable base. Real state returns add brackets, credits and local taxes.
- Pre-tax deferrals reduce income tax but not FICA, which is why the 401(k) saving is smaller than the deferral multiplied by the marginal rate.
- No credits, itemised deductions, self-employment tax or multiple jobs are modelled.
Frequently asked questions
Why is my take-home lower than salary × (1 − tax rate)?
Because the effective rate is not the marginal rate. Only the dollars inside each bracket are taxed at that bracket's rate, so the average rate across all your income is lower than the top bracket you reach. This page shows both so the two cannot be confused.
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming levy no wage tax. New Hampshire taxes interest and dividends only, and Washington has a capital gains excise. Set the state rate to zero for those.
Why is bi-weekly different from semi-monthly?
Bi-weekly pays 26 times a year (every two weeks), semi-monthly pays 24 times (twice a month). The annual total is the same; the per-cheque amount differs, and two months a year contain three bi-weekly paydays.
Does a 401(k) contribution reduce my take-home by the full amount?
No. The contribution leaves your paycheque, but it also lowers taxable income, so part of it would have gone to tax anyway. At a 22% marginal rate, $100 deferred costs about $78 of take-home. FICA is still charged on the deferred amount.
Should I use my marginal or effective rate to compare job offers?
Marginal, for the difference between two offers — an extra $5,000 is taxed at your top bracket. Effective, for comparing the overall burden across states or filing statuses.
Methodology last reviewed 2026-10-18. Results are informational and not financial or engineering advice — see our disclaimer.