Paycheck Calculator

Calculate your take-home pay after taxes, deductions, and contributions

Pay Type

Hourly Rate ($)

Regular Hours

Overtime Hours

Overtime Rate (x)

Pay Period

Tax Information

Filing Status

State Tax Rate (%)

Deductions & Benefits

Health Insurance ($)

Dental Insurance ($)

Retirement Contribution

Other Pre-tax ($)

Paycheck Calculator: Complete Payroll & Tax Guide

A paycheck calculator determines your take-home pay by calculating federal taxes, state taxes, FICA taxes, and deductions from your gross salary or hourly wages.Understanding your net pay is essential for budgeting, financial planning, and making informed career decisions. Every paycheck reflects complex calculations involving multiple tax rates, deduction types, and payroll regulations.

Our professional paycheck calculator provides accurate calculations for both hourly and salaried employees, including overtime pay, pre-tax and post-tax deductions, 401(k) contributions, and annual projections. Essential for employees planning their finances, HR professionals processing payroll, and employers calculating labor costs.

Quick Answer

To calculate take-home pay: Start with gross pay, subtract federal taxes (10-37%), state taxes (0-13%), FICA taxes (7.65%), and deductions. For example: $75,000 salary ≈ $2,885 biweekly gross, minus ~$720 taxes and ~$225 deductions = ~$1,940 net pay. Actual amounts vary by state, filing status, and deductions.

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Payroll Calculation Foundation

Net Pay = Gross Pay - Taxes - Deductions

Basic payroll calculation formula

Essential Payroll Formulas:

Gross Pay Calculations

Hourly: Gross = (Regular Hours × Rate) + (OT Hours × OT Rate)
Salary: Gross = Annual Salary ÷ Pay Periods per Year
Annual from Hourly = (Hourly Rate × Hours/Week × 52)

Tax Calculations

Federal Tax = Progressive brackets (10% to 37%)
FICA = Social Security (6.2%) + Medicare (1.45%)
State Tax = Varies by state (0% to 13%)

Deduction Types

Pre-tax: Reduce taxable income (401k, health insurance)
Post-tax: Deducted after taxes (Roth 401k, garnishments)
Order: Pre-tax → Taxes → Post-tax → Net Pay

Understanding Tax Systems

Federal Income Tax

Progressive tax system with rates from 10% to 37% based on income and filing status.

Current Tax Brackets (Single):
10%: $0 - $11,000
12%: $11,001 - $44,725
22%: $44,726 - $95,375
24%: $95,376 - $182,050
32%: $182,051 - $231,250
35%: $231,251 - $578,125
37%: $578,126+

Important: Marginal tax rates mean you pay different rates on different income portions

FICA Taxes (Social Security & Medicare)

Fixed percentage taxes that fund Social Security and Medicare programs.

Social Security: 6.2% (up to $160,200)
Medicare: 1.45% (no wage limit)
Additional Medicare: 0.9% (on income over $200k single)
Total FICA: 7.65% for most employees

Note: Employer pays matching amount (total 15.3% including employer portion)

State Income Tax

Varies significantly by state, from 0% to over 13%.

No State Tax: Alaska, Florida, Nevada, New Hampshire,
South Dakota, Tennessee, Texas, Washington, Wyoming
Low Tax States: 1-5% (most states)
High Tax States: 6-13% (CA, NY, NJ, etc.)
Some cities also have local income taxes

Important: Check your specific state and local tax requirements

Payroll Deductions & Benefits

Pre-Tax Deductions

Health Insurance Premiums

Medical, dental, and vision insurance premiums reduce taxable income

401(k) Contributions

Traditional 401(k) contributions reduce current taxable income. Current limit: $23,000 ($30,500 if 50+)

Flexible Spending Accounts

FSA for healthcare and dependent care expenses (use-it-or-lose-it rules apply)

Transportation Benefits

Transit passes, parking, and commuter benefits up to IRS limits

Post-Tax Deductions

Roth 401(k) Contributions

After-tax retirement contributions with tax-free withdrawals in retirement

Life Insurance Premiums

Group life insurance premiums above $50,000 coverage are taxable

Disability Insurance

Short-term and long-term disability insurance premiums

Garnishments

Court-ordered deductions for child support, student loans, or debts

Example Paycheck Calculations

Example 1: Hourly Employee with Overtime

$25/hour, 45 hours (40 regular + 5 overtime at 1.5x), biweekly pay, single filing status, 5% state tax

Regular Pay = $25 × 40 = $1,000

Overtime Pay = $25 × 1.5 × 5 = $187.50

Gross Pay = $1,000 + $187.50 = $1,187.50

Pre-tax Deductions = $175 (health) + $59 (401k @ 5%) = $234

Taxable Income = $1,187.50 - $234 = $953.50

Federal Tax = ~$95 (estimated)

State Tax = $953.50 × 5% = $47.68

FICA = $953.50 × 7.65% = $72.94

Net Pay = $1,187.50 - $95 - $47.68 - $72.94 - $234 = $737.88

Result: Take-home pay = $737.88 (62% of gross pay)

Example 2: Salaried Professional

$75,000 annual salary, biweekly pay, married filing jointly, 6% state tax, benefits

Gross Pay = $75,000 ÷ 26 = $2,884.62

Pre-tax Deductions = $230 (health) + $231 (401k @ 8%) = $461

Taxable Income = $2,884.62 - $461 = $2,423.62

Federal Tax = ~$290 (22% bracket, estimated)

State Tax = $2,423.62 × 6% = $145.42

FICA = $2,423.62 × 7.65% = $185.41

Total Taxes = $290 + $145.42 + $185.41 = $620.83

Net Pay = $2,884.62 - $620.83 - $461 = $1,802.79

Result: Take-home pay = $1,802.79 (62.5% of gross pay)

Example 3: High-Income Earner

$150,000 annual salary, biweekly pay, single filing status, 9% state tax, maximum 401(k) contribution

Gross Pay = $150,000 ÷ 26 = $5,769.23

Pre-tax Deductions = $300 (health) + $884.62 (401k max) = $1,184.62

Taxable Income = $5,769.23 - $1,184.62 = $4,584.61

Federal Tax = ~$1,100 (24% bracket, estimated)

State Tax = $4,584.61 × 9% = $412.61

FICA = $4,584.61 × 7.65% = $350.72

Total Taxes = $1,100 + $412.61 + $350.72 = $1,863.33

Net Pay = $5,769.23 - $1,863.33 - $1,184.62 = $2,721.28

Result: Take-home pay = $2,721.28 (47% of gross pay)

Understanding Pay Periods

Common Pay Frequencies

Biweekly (Most Common)

26 paychecks per year
Every two weeks, consistent schedule
Two "extra" paycheck months per year

Semi-monthly

24 paychecks per year
Twice per month (1st & 15th typically)
Consistent monthly budget amounts

Weekly

52 paychecks per year
Every week, common for hourly workers
More frequent but smaller amounts

Tax Implications by Pay Period

Withholding Calculations

Tax withholding is calculated per paycheck, then annualized for tax table lookup

Bonus Pay Periods

Higher taxes may be withheld from bonus checks due to flat 22% federal rate

Three-Paycheck Months

Biweekly employees get "extra" paychecks twice yearly - great for savings

Maximizing Take-Home Pay

Pre-Tax Strategies

Maximize 401(k) Contributions

Every $1,000 contributed saves $220-370 in taxes (depending on bracket)

Health Savings Account (HSA)

Triple tax advantage: deductible, growth tax-free, withdrawals tax-free for medical

Flexible Spending Accounts

Healthcare FSA and Dependent Care FSA reduce taxable income

Pre-Tax Benefits

Health, dental, vision insurance, and commuter benefits

Withholding Optimization

Adjust W-4 Form

Update withholding allowances to optimize refund vs. take-home pay

Estimated Tax Payments

Side income earners may need quarterly estimated payments

Tax Loss Harvesting

Investment losses can offset income and reduce tax burden

State Tax Planning

Consider state residency for tax purposes if you have flexibility

Frequently Asked Questions

Why is my take-home pay lower than I expected?

Multiple factors reduce gross pay: Federal income tax (10-37%), state income tax (0-13%), FICA taxes (7.65%), and deductions (health insurance, 401k, etc.). Together, these typically reduce gross pay by 25-45%. Use this calculator to see the exact breakdown for your situation.

How accurate are online paycheck calculators?

This calculator uses current federal tax tables and standard formulas, making it very accurate for most situations. However, actual paychecks may vary due to specific company policies, local taxes, union dues, or other deductions. Always verify with your HR department for company-specific details.

Should I maximize my 401(k) contribution?

Generally yes, especially with employer matching. 401(k) contributions reduce current taxes and grow tax-deferred. Current contribution limit: $23,000 ($30,500 if 50+). Start with enough to get full employer match, then increase gradually. Balance retirement savings with current cash flow needs.

What's the difference between gross and net pay?

Gross pay is your total earnings before any deductions. Net pay is your take-home amount after taxes and deductions. For example: $75,000 salary = $2,885 gross biweekly, but only ~$1,800-2,000 net depending on taxes and deductions. This difference is why budgeting based on net pay is crucial.

How do overtime hours affect my taxes?

Overtime increases your total income and may push you into higher tax brackets.However, you only pay the higher rate on income above the bracket threshold. The withholding system may take out more taxes from overtime paychecks, but you'll get refunds if too much was withheld.

When should I update my W-4 withholding?

Update your W-4 when you experience major life changes: marriage, divorce, new baby, buying a home, job changes, or significant income changes. Also update if you consistently get large refunds (increase take-home pay) or owe taxes (increase withholding). Review annually during tax season.

Do bonuses have different tax rates?

Bonuses are taxed the same as regular income, but withholding may be different. Employers often use the flat 22% federal withholding rate for bonuses. If this results in over-withholding, you'll get the excess back as a refund. The total tax owed depends on your combined annual income.