How to Calculate Your US Take-Home Pay
2025-08-13
1. Gross vs Net Pay
Gross Pay is your salary before taxes and deductions. Net Pay is what you actually receive after all deductions. In the US, deductions include federal income tax, state income tax, FICA (Social Security + Medicare), health insurance, and 401k contributions.
2. Federal Income Tax
2025 progressive tax rates: 10%, 12%, 22%, 24%, 32%, 35%, 37%. For single filers: 10% up to $11,600, 12% up to $47,150, etc. Adjust withholding via W-4 form. More dependents increase deductions.
3. State Income Tax
Rates vary by state. Nine states have no state income tax (Texas, Florida, etc.). California has up to 13.3%, New York up to 10.9%. Check your state's tax rate.
4. FICA Taxes
Social Security: 6.2% of wages, capped at $160,200. Medicare: 1.45% of all wages, no cap. High earners ($200k+) pay additional 0.9% Medicare tax.
5. Other Deductions
Health insurance, dental, vision, 401k contributions, HSA/FSA, life insurance can be deducted. These are optional and based on your elected amounts.