How is take-home pay calculated?

Take-home pay is your gross salary minus federal income tax, Social Security tax (6.2%), Medicare tax (1.45%), state income tax, and any other deductions such as 401(k) contributions or health insurance premiums.

What is the Social Security tax rate for 2025?

The Social Security tax rate for employees is 6.2% on wages up to $168,600 in 2025. Employers match this 6.2%, for a combined rate of 12.4%.

How much is overtime pay?

Under the Fair Labor Standards Act (FLSA), overtime pay is 1.5 times your regular hourly rate for all hours worked over 40 in a workweek. Some states like California require daily overtime after 8 hours.

What Is My Pay? — Free Paycheck & Salary Calculator

Q: Which states have no income tax?

Nine US states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Q: What is the 2025 federal standard deduction?

The 2025 federal standard deduction is $15,000 for single filers and $30,000 for married filing jointly.

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Take-Home Pay Calculator

See your actual paycheck after federal taxes, SS, and Medicare

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💡 Pro Tip Increasing your 401(k) contribution reduces taxable income dollar-for-dollar. Even a 1% increase can lower your tax bill significantly while building retirement wealth.

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Hourly to Salary Calculator

Convert any hourly rate to annual, monthly, weekly pay

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Overtime Pay Calculator

Calculate OT earnings for any pay period

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⚖️ Know Your Rights Under the FLSA, most hourly employees are entitled to 1.5× pay for all hours over 40/week. Some states (CA, CO, NV) require daily OT after 8 hours. Always check your state's labor laws.

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Raise Impact Calculator

See exactly how much more money a raise puts in your pocket

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Freelance Rate Calculator

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💡 Self-Employment Tax As a freelancer, you pay both the employee AND employer side of Social Security (15.3% total). Always factor this into your rate — most new freelancers underprice because they forget it.

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Quick Reference

2025 Federal Tax Brackets

$0 – $11,92510%

$11,926 – $48,47512%

$48,476 – $103,35022%

$103,351 – $197,30024%

$197,301 – $250,52532%

$250,526 – $626,35035%

$626,351+37%

Understanding Your Paycheck

How Is Your Take-Home Pay Calculated?

Your take-home pay — also called net pay — is the amount deposited into your bank account after your employer withholds taxes and other deductions from your gross paycheck. Understanding each deduction helps you plan your budget accurately and avoid surprises at tax time.

Every American worker pays federal income tax based on their income bracket and filing status. For 2025, federal tax rates range from 10% on the lowest income up to 37% on income over $626,350. Most middle-income earners fall in the 22% or 24% brackets — but your effective rate is always lower because only the income above each threshold is taxed at that rate.

On top of federal income tax, Social Security tax is withheld at 6.2% on wages up to $168,600 in 2025, and Medicare tax is withheld at 1.45% on all wages with no cap. High earners over $200,000 pay an additional 0.9% Medicare surtax. These payroll taxes fund Social Security retirement benefits and Medicare healthcare coverage.

State income tax varies dramatically depending on where you live. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no state income tax on wages at all. Other states range from flat rates as low as 2.5% (Arizona) to progressive rates up to 13.3% (California). Use our state-specific calculators above to see exactly how your state affects your paycheck.

What Is the Standard Deduction for 2025?

The 2025 federal standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. This deduction reduces your taxable income before any federal income tax is calculated.

For example, a single filer earning $60,000 only pays federal income tax on $45,000 of that income after the standard deduction. This is why your effective tax rate is always lower than your marginal (top bracket) rate.

How Does a 401(k) Affect Your Paycheck?

Contributing to a traditional 401(k) reduces your taxable income dollar-for-dollar. If you earn $70,000 and contribute 6% ($4,200), your federal income tax is calculated on only $65,800 — saving you hundreds in taxes each year.

The 2025 401(k) contribution limit is $23,500 per year ($31,000 if you're 50 or older). Use our take-home pay calculator above to see exactly how increasing your 401(k) contribution changes your paycheck.

What Is Overtime Pay and How Is It Calculated?

Under the federal Fair Labor Standards Act (FLSA), most hourly and non-exempt employees are entitled to overtime pay of 1.5 times their regular rate for any hours worked over 40 in a workweek. This is commonly called "time and a half."

Some states have stricter overtime rules. California requires daily overtime after 8 hours worked in a single day. Colorado and Nevada have similar daily overtime requirements. Always check your state's labor laws in addition to federal rules.

How Do Freelancers Calculate Their Tax Burden?

Self-employed workers and freelancers pay self-employment tax of 15.3% — the combined employee and employer share of Social Security and Medicare. This is in addition to regular federal and state income taxes.

Freelancers should set aside at least 25-35% of every payment for taxes. Use our Freelance Rate Calculator above to determine what hourly rate you need to charge in order to match the take-home pay of a salaried employee after accounting for self-employment taxes and benefits.

Frequently Asked Questions

Paycheck Calculator FAQ

Why is my take-home pay different from what the calculator shows?

Our calculator provides estimates based on standard federal and state tax rates. Your actual paycheck may differ due to additional deductions like health insurance premiums, HSA contributions, FSA contributions, union dues, garnishments, or additional withholding you requested on your W-4. Always refer to your actual pay stub for exact figures.

Which states have the lowest income taxes?

Nine states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Among states that do have income tax, North Dakota (2.5% flat), Arizona (2.5% flat), Indiana (3.05% flat), and Louisiana (3% flat) have the lowest rates in 2025.

How do I convert my hourly wage to an annual salary?

Multiply your hourly rate by the number of hours you work per week, then multiply by the number of weeks you work per year. The standard formula for a full-time worker is: Hourly Rate × 40 hours × 52 weeks = Annual Salary. For example, $25/hour × 40 × 52 = $52,000 per year. Use our Hourly to Salary calculator above for instant results.

What is the difference between gross pay and net pay?

Gross pay is your total earnings before any deductions — the number listed on your employment contract or job offer. Net pay (also called take-home pay) is what you actually receive after federal taxes, state taxes, Social Security, Medicare, and any other deductions are withheld. The difference between gross and net pay typically ranges from 20% to 40% depending on your income level and state.

How much does a raise actually increase my take-home pay?

Because of progressive taxation, a raise doesn't increase your take-home pay by the full amount. A $5,000 raise might only add $3,000-$3,800 to your annual take-home pay after federal and state taxes. Use our Raise Impact Calculator to see the exact after-tax value of any raise before negotiating your next salary increase.

Find out exactlywhat you take home.