Salary After Tax Calculator
Decode your earnings. Project your true take-home pay with precise federal, state, and statutory deduction modeling.
Standard Social Security (6.2%) and Medicare (1.45%) rates are applied by default. These taxes fund essential federal welfare programs.
Input baseline earnings to project liquidity
Net income modeling engine ready
Understanding Your Take-Home Pay
"Your gross salary is a vanity metric; your net take-home pay is the reality that defines your financial freedom." Know your tipping budget with our Tip Calculator.
Statutory Accuracy
Integrated modeling of FICA (Social Security & Medicare) ensures your projections match real-world payroll cycles.
Tax Drag Analysis
Calculate your effective tax rate to understand the total 'drag' on your earnings compared to your gross baseline.
Instant Projections
Modify state taxes or extra deductions in real-time to see an immediate impact on your monthly take-home liquidity.
Gross vs. Net Income: The Guide
Knowing the difference between Gross and Net income is crucial for budgeting.
| Term | Definition | Best Used For |
|---|---|---|
| Gross Income | The total amount earned before any taxes or deductions are taken out. | Applying for mortgages, loans, and negotiating salary offers. |
| Net Income | The remaining amount after taxes, benefits, and voluntary contributions. | Monthly budgeting, paying bills, and saving. |
How US Taxes Are Calculated
Marginal vs. Effective Tax Rate
Many people mistakenly believe that if they move into a higher tax bracket, their entire income is taxed at that higher rate. This is false.
The US uses a Marginal Tax System. You only pay the higher rate on the specific portion of income that exceeds the bracket threshold. Your Effective Tax Rate is the weighted average of these rates, which is always lower than your top marginal rate.
Frequently Asked Questions
Q: What is FICA?
FICA stands for the Federal Insurance Contributions Act. It is a mandatory payroll tax that funds Social Security (6.2%) and Medicare (1.45%).
Q: Do I pay state taxes?
It depends on where you live. States like Texas, Florida, and Nevada have 0% state income tax, while California and New York have high state levies.
Q: How do 401(k) contributions affect taxes?
Traditional 401(k) contributions are 'pre-tax', meaning they lower your taxable income today, reducing your current federal tax bill.
Q: What is a 'Standard Deduction'?
The IRS allows you to deduct a specific amount (e.g., $14,600 for singles in 2024) from your income before calculating tax, effectively making that portion of earnings tax-free.