Take-Home Pay Calculator

The gross income is the amount that actually goes into your account after taxes and various deductions have been taken out. It's almost always significantly lower than the gross salary, which often comes as a surprise. This calculator converts the annual gross income to net income, shows the amounts for each tax bracket, and breaks down the result in an individual paycheck you would receive on pay day. There are two modes: The automatic mode for USA uses 2026 tax rates, while the flat rate mode allows you to enter your own values regardless of your location.

Gross income versus net income

Gross income is the salary listed on job postings - the number you see. Net income is also called "after tax" and is what's left over after income taxes, payroll taxes, and various deductions are taken out of your paycheck. Lenders and tax authorities generally look at gross income while your budget should be based on net income. If you mix up the two, you might plan with an amount that you don't actually get to keep.

How the calculator works

Enter your annual gross income and select the frequency of paychecks. In US mode, the tool will apply the standard deduction based on your tax bracket, then calculate taxes using the appropriate tax rates, adding in Social Security and Medicare taxes. In flat tax mode, you use a single rate that you enter for these calculations, which allows it to be used anywhere. The annual result is then divided by the frequency of paychecks to show your actual net income per paycheck.

You can also work backwards. If you leave the gross income field blank and enter your desired net income amount, then the tool will calculate what gross salary is required. This is a reverse calculation of pay - working out how much gross income is needed to achieve your desired net income?

What is deducted from my salary?

In the United States, each paycheck has a number of different deductions taken out separately. Because there are different rules for each deduction, the total amount can seem high.

• Federal income tax is levied at progressive rates of between 10 percent and 37 percent, but only on income above the standard deduction.

• Social security tax is levied at a rate of 6.2% on salaries below an annual salary threshold of $184,500, with this threshold applying in the year 2026. No deductions are made for amounts above this threshold.

• The Medicare tax is 1.45 percent on all wages and has no cap. For high-income earners who exceed a certain threshold that corresponds to their tax bracket, an additional 0.9 percent surtax is levied.

• State and local income taxes depend on where you live. Nine states don't collect any income tax at all, while the highest rates in other states can top out at more than 13 percent.

• When calculating taxable income, certain pre-tax deductions are taken into account including contributions to 401(k) retirement plans, health insurance, Health Savings Accounts (HSA), and Flexible Spending Accounts (FSA). This reduces the amount of income that is subject to tax.

• Post-tax deductions include contributions to Roth accounts, union dues and payroll withholdings that are subtracted from the net income, which reduces available income but has no effect on tax liability.

The standard deduction for 2026.

Since only income above the standard deduction is taxable, the calculator first subtracts this amount. If your salary is below the standard deduction, no federal income tax will be withheld, but Social Security and Medicare taxes still must be paid.

Frequency of pay and gross salary per payment.

The frequency of paychecks does not change the annual tax burden but only the distribution of that same annual salary. The more frequent the paychecks, the smaller each paycheck is and the less frequent the paychecks, the larger each paycheck is. Bi-monthly paychecks are often confused with bi-weekly paychecks but they are not the same thing. A bi-weekly paycheck means 26 paychecks per year while a bi-monthly paycheck means 24 paychecks per year.

Example calculation:

For an annual salary of $60,000, for a single individual with no additional deductions and paid fortnightly, the taxable income after deducting the standard deduction of $16,100 is $43,900.. The federal tax consists of $1,240 (tax bracket 10) and $3,780 (tax bracket 12), which totals to $5,020. Social security tax is $3,720,, Medicare tax is $870,, so the total payroll tax is $4,590.

This is about 84% of the gross salary, which is approximately $1,938 per pay and there are 26 bi-weekly pays in a year. If you also put away $6,000 into a retirement account (401(k)), your taxable income will be reduced to $37,900,, thus reducing federal tax and leaving more money in your pocket. This 401(k) money is however taken out of the paycheck and transferred to a retirement account, so it's not immediately available.

Calculation with a tool outside of the US:

When the tax system is switched to a flat rate, the options that are only for US will disappear. By entering one single rate for income tax and social security tax, this calculator tool will apply that rate on gross salary after deducting the allowable deductions. Even if a country has regional taxes, state and local tax rates settings remain valid and treatment of deductions does not change. You can quickly estimate your net income no matter where you are without pretending to know all rules for each country.

Ways to increase gross income.

Part of your salary is fixed but there are also some factors that you can influence yourself.

• The money is put into an account that is available before taxes are taken out. By using programs like 401(k)s, HSAs and FSAs you can reduce your taxable income which means some of the money saved would otherwise be used to pay taxes.

• Please check to see if the withholding is correct. If you get a large refund every April, it means that you have been loaning money to the government interest-free all year long. By adjusting your W-4 form, you can increase your paychecks.

• Check your pay stubs. If you can find a cheaper insurance policy or cancel the spouse's secondary health insurance coverage, this will increase your net take-home pay.

• Be aware of state lines. If you move from a high-tax to a no-income tax state, your net income can increase even if your gross income stays the same.

• Overtime and bonuses should be compared. Although additional income is also taxed, the tax rate at the border means that a large part of it remains with the recipient rather than being lost completely.

This tool is for educational purposes only and provides an estimate. The US calculation uses the 2026 federal tax rates, standard deduction, and FICA. It does not take into account various tax credits, accurate withholding (Form W-4), alternative minimum tax, or any state-specific rules. In the flat rate mode, it uses the values entered. Please check your pay stubs and consult a qualified professional for definitive information.