What is gross pay vs. net pay?

Gross pay is your total earnings before any deductions — your stated salary or hourly wage × hours. Net pay (take-home pay) is what hits your bank account after federal income tax, Social Security (6.2%), Medicare (1.45%), and other deductions.

What is Social Security and Medicare tax?

FICA taxes fund Social Security and Medicare. For employees: Social Security = 6.2% of wages up to $176,100 (2025 wage base). Medicare = 1.45% of all wages, plus 0.9% additional Medicare tax on wages over $200,000 (single) or $250,000 (married).

How do pre-tax deductions reduce my paycheck?

Pre-tax deductions (401k, HSA, traditional IRA, health/dental/vision insurance) are subtracted before federal income tax is calculated, reducing your taxable income. A $500/month 401k contribution doesn't reduce your take-home pay by $500 — it reduces it by about $500 × (1 − marginal tax rate).

What are W-4 allowances?

The 2020+ W-4 form no longer uses allowances. Instead, you specify additional withholding amounts, other income, and deductions. The IRS withholding calculator or your payroll department can help you set correct W-4 elections to avoid owing taxes or getting a large refund.

Does this calculator include state income tax?

This calculator covers federal income tax, Social Security, and Medicare only. State income taxes vary widely — from 0% (Texas, Florida, Nevada) to over 13% (California). Add your state's estimated withholding to get the full picture.

Paycheck Calculator

Calculate your net take-home pay per paycheck after federal income tax, Social Security, Medicare, and pre-tax deductions. Based on 2025 federal tax brackets and FICA rates.

Gross Pay per Pay Period ($)

Pay Frequency

Filing Status

Pre-Tax Deductions/Period ($)

Additional Federal Withholding ($)

Paycheck Breakdown

              Net Take-Home Pay
              —
            

Gross Pay —

Federal Income Tax —

Social Security (6.2%) —

Medicare (1.45%) —

Pre-Tax Deductions —

Annual Net Pay —

Effective Tax Rate —

How Federal Income Tax Withholding Works

Your employer withholds federal income tax each pay period based on your annualized income and W-4 elections. The payroll tax withholding uses the same 2025 brackets as your annual return — just applied to one pay period's worth of income scaled to an annual basis.

2025 FICA Taxes

Social Security: 6.2% employee share, on first $176,100 of wages
Medicare: 1.45% on all wages + 0.9% on wages over $200,000 (single)
Employer pays a matching 6.2% SS + 1.45% Medicare on your behalf

Note: State income taxes, local taxes, and post-tax deductions not included in this calculation.

Pre-Tax vs. Post-Tax Deductions

Pre-tax deductions — like 401(k) contributions, health insurance premiums, and FSA contributions — reduce your taxable income before federal withholding is calculated. This lowers both your income tax and FICA taxes. Post-tax deductions (like Roth 401(k) contributions or wage garnishments) come out after taxes and don't reduce your tax liability. Maximizing pre-tax benefits is one of the most effective ways to increase take-home pay without a raise.

Frequently Asked Questions

Why does my paycheck vary even with the same salary?

Several factors can cause paycheck fluctuations: changes to health insurance premiums, 401(k) contribution adjustments, hitting the Social Security wage base cap ($176,100 in 2025 — SS withholding stops after this), updated W-4 elections, or one-time deductions. Mid-year raises also change withholding amounts retroactively based on your projected annual income.

What is a W-4 and how does it affect withholding?

The W-4 tells your employer how much federal income tax to withhold each pay period. You can adjust it any time — claiming more allowances reduces withholding, resulting in a larger paycheck but a smaller (or no) refund at tax time. Claiming fewer allowances increases withholding, reducing your paycheck but increasing your refund. The IRS recommends reviewing your W-4 after major life changes like marriage, divorce, or having children.

How is biweekly pay different from semi-monthly?

Biweekly means paid every two weeks — 26 paychecks per year. Semi-monthly means paid twice a month — 24 paychecks per year. They sound similar but result in different annual amounts per paycheck. Biweekly employees receive two extra paychecks per year, which some use for savings goals or extra debt payments.