Insights
How to Calculate Your Take-Home Pay in the US (2026)
Your take-home pay — the money that actually lands in your bank account — is your gross salary minus three taxes and any pre-tax deductions. The formula is simple:
Take-home = Gross pay
− Federal income tax
− State income tax
− FICA (7.65%)
− Pre-tax deductions (401k, health, etc.)The tricky part is that each of those is calculated differently. Here is exactly how, so you can estimate your own — or jump straight to the US paycheck calculator for your state.
What gets deducted from your paycheck
Three mandatory taxes come out of nearly every US paycheck, plus anything you choose to set aside pre-tax.
Federal income tax
This is progressive: your income is taxed in brackets (10%, 12%, 22%, 24%, and up), and only the portion in each bracket is taxed at that rate. That means your effective rate — total federal tax divided by income — is lower than your top bracket. For many single filers earning $50,000–$100,000, the effective federal rate lands around 10–15% after the standard deduction (around $15,000 for a single filer, which the IRS raises each year for inflation).
State income tax
This varies hugely by where you live. Nine states have no state income tax at all — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — so a paycheck there is only reduced by federal tax and FICA. Other states range from around 3% to over 13% (California’s top rate). Pick your state in the calculator to apply the right rate.
FICA: Social Security + Medicare
FICA is the payroll tax that funds Social Security and Medicare, and it is the same everywhere:
- Social Security: 6.2% of your wages, up to an annual wage cap that rises each year with inflation (around $176,000 recently — earnings above it aren’t taxed for Social Security).
- Medicare: 1.45% of all wages, with no cap.
Together that’s 7.65% taken from almost every paycheck, on top of income tax. This is often the piece people forget when they estimate their take-home.
Pre-tax deductions that lower your tax
Money you contribute to a traditional 401(k), HSA, FSA, or pre-tax health premiums comes out before income tax is calculated, so it lowers your taxable income and your tax bill. It reduces your take-home cash today, but it isn’t lost — it’s going into retirement or health savings.
A worked example
Take a $70,000 salary in a state with a ~5% income tax, no pre-tax deductions:
| Item | Amount |
|---|---|
| Gross salary | $70,000 |
| FICA (7.65%) | −$5,355 |
| Federal income tax (~10% effective) | −$7,200 |
| State income tax (~5%) | −$2,800 |
| Estimated take-home | ≈ $54,600/yr (≈ $4,550/mo, ≈ $2,100 biweekly) |
Move to a no-income-tax state and the same salary nets roughly $2,800 more a year. Enter your own numbers in the paycheck calculator for a precise figure, hourly or salary.
Take-home pay for common salaries
Rough annual take-home for a single filer, in a state with ~5% income tax (no pre-tax deductions). Numbers are estimates — your exact figure depends on your state, filing status, and deductions:
| Gross salary | ≈ Take-home / year | ≈ Per month |
|---|---|---|
| $40,000 | ~$32,300 | ~$2,690 |
| $60,000 | ~$47,200 | ~$3,930 |
| $80,000 | ~$61,300 | ~$5,110 |
| $100,000 | ~$74,700 | ~$6,225 |
FAQ
How much is taken out of my paycheck? For a middle income, expect roughly 20–30% of gross to go to federal tax, state tax, and FICA combined — more in high-tax states, less (or none at the state level) in no-income-tax states.
What is FICA? FICA is the 7.65% payroll tax for Social Security (6.2%) and Medicare (1.45%). It’s separate from income tax and comes out of nearly every US paycheck.
Why is my paycheck smaller than my salary ÷ number of pays? Because taxes and FICA come out first, plus any 401(k), health premiums, or other deductions. The calculator shows the full breakdown.
How do I calculate take-home for an hourly job? Multiply your hourly wage by hours per week and weeks per year to get annual gross, then apply the same taxes. The paycheck calculator has an hourly mode that does this for you.
Which states have no income tax? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Your paycheck there is only reduced by federal tax and FICA.