US Salary & Take-Home Calculator

Understanding Your US Take-Home Pay

Your take-home pay — also called net pay — is what actually lands in your bank account after all deductions. For most Americans, total deductions (federal tax, state tax, Social Security, and Medicare) consume 20-35% of gross income. The exact percentage depends on your income level, filing status, and state of residence.

Key takeaway: If you earn $75,000, expect roughly $50,000-$60,000 to actually reach your bank account, depending on your state. Always budget from net pay, not gross.

How US Federal Income Tax Works

The US uses a progressive (marginal) tax system. You don’t pay one flat rate on your entire income — instead, different portions of your income are taxed at different rates. For 2025, single filer brackets are:

Before calculating tax, you subtract the standard deduction ($15,000 for single filers, $30,000 for married filing jointly). This means the first $15,000 of a single filer’s income is effectively tax-free.

Example: On a $60,000 salary, your taxable income is $45,000 after the standard deduction. You pay 10% on the first $11,925 and 12% on the remaining $33,075 — for a total federal tax of about $5,162, an effective rate of just 8.6%.

FICA: Social Security and Medicare

Every worker pays FICA (Federal Insurance Contributions Act) taxes regardless of income level or filing status:

• Social Security: 6.2% on income up to $176,100 (the 2025 wage base cap). Your employer pays an additional 6.2%.
• Medicare: 1.45% on all income, with an additional 0.9% on income above $200,000 (single) or $250,000 (married).

These taxes are non-negotiable — there’s no deduction or filing status trick to reduce them.

State Income Tax: The Big Variable

State income tax is the factor that creates the biggest difference in take-home pay between locations. Nine states charge no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

At the other end, top marginal rates vary widely:

A $100,000 salary in Texas (0% state tax) takes home roughly $5,000-$7,000 more per year than the same salary in California or New York. This is why our calculator includes a state tax rate input — it’s often the largest variable in your paycheck.

Tip: If you work remotely and can choose where to live, running the same salary through different states in the calculator can reveal thousands of dollars in annual savings.

Salary vs Hourly: Making the Comparison

Converting between salary and hourly requires knowing your working hours. The standard formula for full-time is: Annual Salary ÷ 2,080 hours (40 hours × 52 weeks) = Hourly Rate.

But hourly workers have overtime potential. Under the FLSA, hours beyond 40 per week earn 1.5x the regular rate. An hourly worker at $30/hour who consistently works 45 hours per week earns $81,900 annually — $19,500 more than the $62,400 base.

When comparing job offers, factor in realistic overtime. Also consider benefits: a salaried position often includes health insurance, retirement matching, and paid time off that hourly roles may lack.

Key takeaway: Don’t compare offers on base pay alone. A $62,400 salary with a 4% 401(k) match and employer-paid health insurance can outvalue an $80,000 hourly equivalent with no benefits.

Common Mistakes

1. Forgetting FICA when comparing salaries. Social Security and Medicare take 7.65% from every paycheck. A $75,000 salary loses $5,738 to FICA alone.
2. Ignoring state tax differences. Moving from California to Texas for the same salary gives you an effective raise of 5-10%.
3. Not maximizing pre-tax deductions. 401(k) contributions reduce your taxable income, lowering both federal and state tax while building retirement savings.

What to Do Next

Run your actual salary through the calculator with your state’s tax rate to see your real take-home pay. If you’re comparing job offers in different states, enter both scenarios — the state tax difference alone might change your decision.