Frequently asked questions
What federal tax rate should I enter?
Enter your effective withholding rate, not your marginal bracket. Check a recent pay stub — divide the federal tax withheld by your gross pay to find your actual withholding percentage. For most middle-income earners, 15–22% is a reasonable estimate.
Why is my take-home so much less than gross pay?
Multiple deductions compound: federal tax, state tax, Social Security (6.2%), Medicare (1.45%), plus any retirement and insurance contributions. Combined, these typically reduce gross pay by 25–40% depending on income level and location.
Does this account for the Social Security wage cap?
No. Social Security tax applies only up to a wage base limit (which changes annually). If your income exceeds that cap, your actual Social Security deduction will be lower for the portion of the year after reaching it. This calculator applies the rate uniformly for simplicity.
Should retirement contributions be pre-tax or post-tax?
Traditional 401(k) and similar contributions are pre-tax, reducing your taxable income. Roth contributions are post-tax. This calculator treats them as flat deductions from gross pay. For precise modeling of pre-tax vs post-tax, adjust your federal rate accordingly.
Why might my actual paycheck differ from this estimate?
Real payroll involves tax tables (not flat rates), year-to-date accumulation effects, benefit elections that change mid-year, bonuses taxed at supplemental rates, and jurisdiction-specific rules. This gives a useful approximation, not an exact payroll calculation.
What if my state has no income tax?
Set the state/local rate to 0%. Several jurisdictions levy no income tax, which can significantly increase take-home pay. However, they may have higher sales or property taxes that this calculator does not capture.