Salary Calculator
Calculate your take-home pay, taxes, and net income based on your gross salary, pay frequency, and filing status.
How to Use This Calculator
- Enter your gross annual salary before any deductions
- Select your pay frequency (how often you receive your paycheck)
- Choose your tax filing status for accurate federal tax calculations
- Adjust the state tax rate slider to match your state's income tax rate
- Optionally include 401(k) contributions if you contribute to a retirement plan
- Click Calculate to see your take-home pay and tax breakdown
Formula Used
Net Income = Gross Salary - Federal Tax - State Tax - FICA Tax - Pre-tax Deductions
Where:
- Gross Salary = Total annual earnings before deductions
- Federal Tax = Calculated based on tax brackets and filing status
- State Tax = Gross Salary × State Tax Rate
- FICA Tax = Social Security (6.2%) + Medicare (1.45%) of Gross Salary
- Pre-tax Deductions = 401(k) contributions and other pre-tax benefits
Example Calculation
Real-World Scenario:
A software engineer with a $75,000 annual salary, paid bi-weekly, filing as single, with a 5% state tax rate and contributing $5,000 annually to a 401(k).
Given:
- Gross Salary = $75,000
- Pay Frequency = Bi-weekly (26 times per year)
- Filing Status = Single
- State Tax Rate = 5%
- 401(k) Contribution = $5,000
Calculation:
Taxable Income = $75,000 - $5,000 = $70,000
Federal Tax (approx.) = $10,500
State Tax = $70,000 × 5% = $3,500
FICA Tax = $75,000 × 7.65% = $5,737.50
Net Annual Income = $75,000 - $10,500 - $3,500 - $5,737.50 - $5,000 = $50,262.50
Net Bi-weekly Paycheck = $50,262.50 ÷ 26 = $1,933.17
Result: The software engineer takes home $1,933.17 every two weeks, with an effective tax rate of approximately 33%.
Why This Calculation Matters
Practical Applications
- Budgeting and financial planning
- Evaluating job offers and salary negotiations
- Understanding the impact of tax brackets on your income
- Planning for retirement contributions
Key Benefits
- Accurate estimation of take-home pay
- Understanding tax implications of different filing statuses
- Visualizing the impact of deductions on net income
- Comparing net income across different pay frequencies
Common Mistakes & Tips
Frequently Asked Questions
References & Disclaimer
Financial Disclaimer
This calculator provides estimates based on current tax laws and rates. Tax laws are complex and subject to change. This tool should not be considered financial advice. Consult with a qualified tax professional for personalized advice.
References
- IRS Tax Brackets and Rates - Current federal tax brackets and rates for all filing statuses
- Social Security Administration - Information about Social Security tax rates and income limits
- Tax Policy Center - Non-partisan resource for tax information and analysis
Accuracy Notice
This calculator provides estimates based on simplified tax calculations and does not account for all possible deductions, credits, or special tax situations. Results may vary from actual tax calculations. State tax rates are approximate and may not reflect local taxes or special circumstances.
About the Author
Kumaravel Madhavan
Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.