What Comes Out of Your Paycheck?
Take-home pay is what lands in your bank account after your employer deducts taxes and other withholdings. Understanding the gap between your gross salary and net pay helps with budgeting, negotiating offers, and planning retirement contributions. This calculator covers the federal piece — the largest single deduction for most workers.
Federal Income Tax Withholding
Federal income tax is calculated on your taxable income — gross salary minus pre-tax deductions and your standard deduction. The 2025 standard deduction is $15,000 for single filers and $30,000 for married filing jointly. This means a $65,000 salary doesn't mean you owe taxes on $65,000 — you owe taxes on roughly $50,000 if single with no other deductions.
FICA Taxes: Social Security and Medicare
FICA taxes are flat rates on gross wages (not taxable income). Social Security is 6.2% on wages up to $176,100 in 2025. Medicare is 1.45% on all wages, with an additional 0.9% on wages over $200,000. Your employer matches these amounts, effectively doubling the contribution — but you only see the employee half on your paystub.
Pre-Tax Deductions Save You Money
Contributions to 401(k), traditional IRA, HSA, FSA, and employer-sponsored health insurance are made with pre-tax dollars — they reduce your taxable income before federal income tax is calculated. A $500/month 401(k) contribution from someone in the 22% bracket only reduces take-home pay by about $390/month, while the full $500 goes toward retirement. This is the tax advantage of pre-tax investing.
State Taxes Not Included
This calculator covers federal taxes only. State income tax ranges from 0% (TX, FL, WA, NV, AK, SD, WY) to 13.3% (California's top bracket). Most states with income tax withhold 3–7% of wages. Factor in your state's rate for a complete picture of your take-home pay.