Gross to Net Pay Calculator
Calculate take-home pay from gross salary after federal, state, FICA, and other deductions. Enter values for instant results with step-by-step formulas.
Reviewed for accuracy by Raz Mohammad, Tax & Salary Specialist
Gross to Net Pay Calculator
Calculator
Adjust values & calculateEnter your values below. Every result is computed in your browser — no data is sent to any server.
Formula: Net Pay = Gross Pay - Federal Tax - State Tax - FICA - Pre-Tax Deductions
Worked example — Net Pay: ~$1,947 per pay period | Effective Rate: ~21.6%
Formula
Net Pay = Gross Pay - Federal Tax - State Tax - FICA - Pre-Tax Deductions
Start with your gross pay per period, then subtract federal income tax (based on filing status and tax brackets), state income tax, FICA taxes (Social Security 6.2% + Medicare 1.45%), and any pre-tax deductions like 401(k) contributions.
Worked Examples
Example 1: Single Filer, Bi-Weekly Pay
Problem:A single filer in California earns $3,000 bi-weekly with $200 in pre-tax 401(k) contributions.
Solution:Annual Gross = $3,000 × 26 = $78,000 Federal Tax: ~$413/period State Tax (CA ~7%): ~$210/period FICA: ~$230/period Net Pay = $3,000 - $413 - $210 - $230 - $200 = ~$1,947
Result:Net Pay: ~$1,947 per pay period | Effective Rate: ~21.6%
Example 2: Married Filing Jointly in Texas
Problem:A married filer in Texas (no state tax) earns $5,000 bi-weekly with $400 in pre-tax deductions.
Solution:Annual Gross = $5,000 × 26 = $130,000 Federal Tax: ~$565/period State Tax: $0 (Texas) FICA: ~$383/period Net Pay = $5,000 - $565 - $0 - $383 - $400 = ~$3,652
Result:Net Pay: ~$3,652 per pay period | Effective Rate: ~14.5%
Frequently Asked Questions
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions. Net pay (or take-home pay) is what you actually receive after federal income tax, state income tax, FICA taxes (Social Security and Medicare), and any pre-tax deductions (401k, health insurance, HSA) are subtracted. Your net pay is typically 60-75% of your gross pay, depending on your tax bracket, state, and deductions.
What are pre-tax deductions?
Pre-tax deductions are amounts subtracted from your gross pay before taxes are calculated, reducing your taxable income. Common pre-tax deductions include: 401(k) or 403(b) retirement contributions, health insurance premiums, Health Savings Account (HSA) contributions, Flexible Spending Account (FSA) contributions, and commuter benefits. Pre-tax deductions lower your tax bill but also reduce your Social Security wage base.
Which states have no income tax?
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (dividends and interest only), South Dakota, Tennessee, Texas, Washington, and Wyoming. Living in a no-income-tax state increases your take-home pay, but these states may have higher sales taxes, property taxes, or other fees to compensate for the lost revenue.
What is the effective tax rate vs. marginal tax rate?
Your marginal tax rate is the rate applied to your last dollar of income — the highest bracket your income falls into. Your effective tax rate is the average rate you actually pay across all brackets, calculated as total tax paid divided by total income. For example, a single filer earning $80,000 has a marginal rate of 22% but an effective federal rate of approximately 14%. The effective rate is always lower than the marginal rate due to the graduated bracket system.
How is net pay calculated from gross pay?
Net pay is what remains after every deduction is subtracted from gross pay. The order matters: start with gross earnings, subtract pre-tax items (traditional 401(k) contributions, HSA/FSA contributions, and most employer health premiums), which lowers the wage base used for income tax. Payroll taxes come next — Social Security at 6.2% up to the annual wage base and Medicare at 1.45% with no cap, both calculated on a base that pre-tax health and retirement deferrals reduce differently. Then federal, state, and any local income tax withholding is applied per your W-4 elections. Finally subtract post-tax items such as Roth 401(k) contributions, union dues, and wage garnishments. Two people with identical gross pay routinely take home very different net pay purely because of these elections.
Why is my net pay lower than the take-home figure I expected?
The most common causes are all structural rather than errors. Withholding is computed as though every paycheck repeats for the full year, so a bonus or an overtime-heavy period is withheld at a rate that assumes that income level is permanent — the excess comes back at filing, not in the paycheck. Second, a W-4 filled out without accounting for a second job or a working spouse under-counts household income and the payroll system compensates with heavier withholding. Third, benefit deductions frequently do not fall evenly: many employers take health premiums on only the first two pay periods of a month, so a three-paycheck month shows a higher net pay than the other two. Compare a full year of pay stubs rather than one before concluding something is wrong.
Does a raise ever reduce my net pay?
Tax brackets alone cannot reduce net pay, because only the income inside a higher bracket is taxed at that higher rate — earning one more dollar in a 24% bracket still leaves you 76 cents ahead. What genuinely can cut take-home pay is a benefit cliff: crossing an eligibility threshold for a subsidy, income-driven student loan repayment, or a means-tested credit can withdraw more than the raise adds. Employer plan rules matter too, since a raise raises the dollar value of a percentage-based retirement deferral and that larger contribution reduces net pay even though total compensation went up. Check thresholds, not brackets, when a raise appears to cost you money.
What is adjusted gross income (AGI)?
AGI is gross income minus adjustments like retirement contributions, student loan interest, and HSA contributions. AGI determines eligibility for many deductions and credits.
References
Reviewed for accuracy by Raz Mohammad, Tax & Salary Specialist · Editorial policy
Related Calculators
🧮Hourly Pay Calculator
Convert between hourly, daily, weekly, biweekly, monthly, and annual pay.
🧮Pay Raise Percentage Calculator — Old vs New Salary
Calculate the percentage increase or decrease between your old and new salary.
🧮Back Pay Calculator
Calculate back pay owed from start date to end date based on correct vs actual pay rate.
🧮Shift Differential Calculator
Calculate shift differential pay for night, weekend, and holiday shifts.
🧮401(k) Employer Match Calculator — Free Money Check
Calculate employer 401k matching contributions from salary, contribution rate, and match formula.
🧮HSA Contribution Calculator
Calculate maximum HSA contributions and tax savings based on coverage type and age.
🧮Fsa Calculator
Estimate flexible spending account savings from eligible expenses and tax bracket.
🧮Employee Cost Calculator
Calculate the true total cost of an employee including salary, benefits, taxes, and overhead.