EachCalculatorSalary Calculator
Estimate your real take-home pay from a gross annual salary after federal tax, Social Security, Medicare, and state/local tax. An illustrative estimate only, not tax or financial advice.
How It Works
Federal tax
Federal income tax is estimated using the same simplified progressive brackets and standard deduction as the Tax Calculator.
Payroll taxes
Social Security (6.2%, up to an annual wage cap) and Medicare (1.45%) are calculated on top of federal tax — these are mandatory payroll taxes separate from income tax.
State and local tax
A flat percentage you provide is applied to approximate combined state and local income tax, since rates vary widely by location.
Example Calculation
A single filer earning $80,000/year with a 5% state tax rate takes home roughly $61,600/year (about $5,133/month) after federal tax, Social Security, Medicare, and state tax.
Common Mistakes
- Forgetting Social Security tax stops once income exceeds the annual wage base — very high earners pay a lower effective payroll tax rate.
- Using your state's top marginal rate instead of your effective state rate, which overestimates your state tax.
- Comparing job offers by gross salary alone instead of estimated take-home pay, especially across different states.
Frequently Asked Questions
- Why is my take-home pay so much lower than my salary?
- Gross salary is reduced by federal income tax, Social Security, Medicare, and (in most states) state income tax before you ever see it — commonly 20-35% of gross pay depending on income and location.
- Is Social Security tax capped?
- Yes — Social Security tax only applies up to an annual wage base ($168,600 in this calculator's assumptions), above which no additional Social Security tax is withheld.
- Does this account for pre-tax deductions like a 401(k)?
- No — this calculates take-home pay from gross salary directly. Pre-tax contributions (401(k), HSA, etc.) would reduce your taxable income and change the result.