Your salary is not what lands in your bank account. Take-home pay (net pay) is what is left after income tax, Social Security, Medicare, state tax and any deductions taken from your paycheck. This guide shows how each piece is worked out, using 2026 US federal figures, so you can estimate your own number with our salary calculator.
Take-home pay = gross pay − federal income tax − Social Security (6.2%) − Medicare (1.45%) − state tax − pre-tax deductions. A single filer earning $60,000 with no state income tax pays about $9,610 in tax and takes home about $50,390 a year, or $4,199 a month.
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Gross pay vs net pay
Gross pay is your salary before anything is taken out. Net pay, or take-home pay, is what you actually receive. The difference is made up of taxes and any deductions, such as retirement contributions, that your employer withholds.
Step 1: Federal income tax
US federal income tax is progressive: only the income inside each bracket is taxed at that bracket's rate. First you subtract the standard deduction, which for 2026 is $16,100 for a single filer, $32,200 for married filing jointly and $24,150 for head of household. The rest is your taxable income.
2026 federal brackets for a single filer:
| Rate | Taxable income |
|---|---|
| 10% | up to $12,400 |
| 12% | $12,400 to $50,400 |
| 22% | $50,400 to $105,700 |
| 24% | $105,700 to $201,775 |
| 32% | $201,775 to $256,225 |
| 35% | $256,225 to $640,600 |
| 37% | over $640,600 |
A common mistake is thinking a raise into a higher bracket reduces your whole income. It does not. Only the dollars above the bracket line are taxed at the higher rate.
Step 2: Social Security and Medicare (FICA)
- Social Security: 6.2% of your wages, up to a yearly wage limit. For 2026 that limit is $184,500, so the most an employee pays is about $11,439.
- Medicare: 1.45% of all wages. Higher earners may owe an extra Medicare tax above certain income levels.
Together that is 7.65% of pay for most employees. These taxes apply to your gross wages, and they are not reduced by the standard deduction.
Step 3: State income tax
States differ a lot. Texas, Florida and Washington have no state income tax on wages. Others use a flat rate or their own brackets. Our calculator uses a single simplified rate for each state it lists, which is useful for a rough comparison but will not match your exact state return. Local taxes, such as city income tax, are not included.
A full worked example
Take a single filer with a $60,000 salary and no extra deductions.
Taxable income
$60,000 − $16,100 standard deduction = $43,900.
Federal tax
10% × $12,400 = $1,240, plus 12% × ($43,900 − $12,400) = $3,780. Total $5,020.
Social Security and Medicare
$60,000 × 6.2% = $3,720, and $60,000 × 1.45% = $870.
Take-home pay
$60,000 − $5,020 − $3,720 − $870 = $50,390 a year, with no state tax.
The same salary in different states, using the calculator's simplified state rates:
| State | State tax (simplified) | Total tax | Take-home per year | Per month |
|---|---|---|---|---|
| Texas (no income tax) | $0 | $9,610 | $50,390 | $4,199 |
| California (9.3% flat estimate) | $5,580 | $15,190 | $44,810 | $3,734 |
Your marginal federal rate here is 12%, because the last dollars you earned fall in the 12% bracket. Your effective federal rate is lower: $5,020 ÷ $60,000 = about 8.4%. Counting every tax, the total is 16% in Texas.
A single flat 9.3% is a simplification. Actual California tax is progressive and, for a $60,000 salary, is usually lower than this estimate, so treat that row as a cautious figure, not a tax return.
Example with a family
A married couple filing jointly with a combined $90,000 salary and two children, in a state with no income tax:
- Taxable income: $90,000 − $32,200 = $57,800.
- Tax before credits: 10% × $24,800 = $2,480, plus 12% × $33,000 = $3,960, which is $6,440.
- Child tax credit: 2 × $2,200 = $4,400, leaving federal tax of $2,040.
- Social Security $5,580 and Medicare $1,305.
- Take-home: $90,000 − $2,040 − $5,580 − $1,305 = $81,075 a year, or about $6,756 a month.
The calculator applies the full credit per dependent and does not model income phase-outs, so it fits typical middle incomes best.
How a 401(k) changes take-home pay
Pre-tax retirement contributions lower your taxable income, so they lower your income tax, but they do not lower Social Security and Medicare, which still apply to the full wage. A single filer earning $75,000 in a state with a 6.5% simplified rate (the calculator's New York setting) compares like this:
| No contribution | $6,000 contributed | |
|---|---|---|
| Federal income tax | $7,670 | $6,350 |
| Social Security + Medicare | $5,738 | $5,738 |
| State tax (simplified) | $4,875 | $4,485 |
| Take-home pay | $56,717 | $52,427 |
Putting $6,000 into the plan reduces take-home pay by $4,290, not $6,000, because about $1,710 comes back as lower tax. The $6,000 goes into your own account, so you still own it.
Converting to monthly and per-paycheck pay
Every two weeks = annual ÷ 26
Twice a month = annual ÷ 24
Weekly = annual ÷ 52
$50,390 ÷ 12 = $4,199 a month
$50,390 ÷ 26 = $1,938 every two weeks
What this estimate leaves out
- Health insurance premiums and other pre-tax benefits (HSA, FSA, commuter).
- Local and city taxes, and state disability or family-leave contributions.
- Additional Medicare tax for high earners, and tax credits other than the child tax credit.
- Bonuses and overtime, which may be withheld at a different rate than regular pay.
- Your real withholding (Form W-4), which can differ from the tax you actually owe at year end.
Treat the result as a planning estimate. Your pay stub shows the real amounts.
How to use the salary calculator
- Enter your gross yearly salary, or switch to an hourly rate.
- Pick a state or choose Federal Only, and set your filing status.
- Add dependents and any pre-tax deduction, such as 401(k) contributions.
- Read the tax breakdown, take-home pay and per-paycheck amounts.
Estimate your own take-home pay
Enter your salary, state and filing status to see the breakdown.
Open the Salary CalculatorFrequently Asked Questions
Conclusion
Take-home pay comes down to four pieces: federal income tax with its standard deduction and brackets, Social Security and Medicare at 7.65%, your state's tax, and any deductions from your paycheck. Work through them once by hand to see how they fit together, then use the salary calculator to compare scenarios. If you are planning a budget around the result, try our budget planner.
This guide is general education, not tax advice. Figures use 2026 US federal rules for a simple wage earner and a simplified state estimate. Check IRS.gov or a tax professional for your situation.