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Key takeaways
- This paycheck calculator helps you estimate your take-home pay after federal taxes, state taxes, and withholdings are deducted from your gross income.
- Your net income depends on your filing status, number of dependents, and state tax requirements – each state has different income tax structures.
- Your employer automatically withholds FICA taxes for Social Security and Medicare, federal income tax, and state income tax from your paycheck.
- You can adjust your tax withholdings by updating your Form W-4 with your employer.
Understanding your take-home pay can help you budget with confidence and plan for expenses. Whether you’re starting a new job or want to verify your current earnings, you can use our paycheck calculator to estimate your net income after taxes and withholdings. We’ll walk you through what taxes come out of your paycheck, how to calculate your earnings manually, and how to read your pay stub.
Paycheck calculator
This calculator is a representational tool, and your actual take-home pay may be different based on your filing status and other factors. This calculator does not account for state income taxes or deductions like health insurance or retirement savings. It assumes a filing status of single or Married filing separately. This calculator also assumes you have no dependents. The calculator does factor in marginal federal income taxes. It’s for educational purposes only and is not intended to offer any tax, legal, financial, or investment advice.
Paycheck Calculator
Estimate your gross pay and post-tax take-home pay.
Get paid when you say, up to $500, with MyPay.^
Our paycheck calculator estimates weekly, biweekly, and monthly gross and net income for both salaried and hourly employees. Here’s how to use it:
- Hourly or salary: Select how you receive your pay
- Hourly wage: Enter your wage per hour
- Average weekly hours: Enter how many hours you work each week
- Annual salary: Enter how much you earn every year (if applicable)
- Overtime hourly wage: If you have overtime pay to include, enter how much you earn per overtime hour
- Average weekly overtime hours: If you have overtime pay to include, enter how many hours of overtime you work each week
After entering your details into the paycheck calculator, the tool will show you your results.
What taxes come out of your paycheck
Your employer withholds four main taxes from your paycheck: federal income tax, FICA taxes for Social Security and Medicare, state income tax, and local taxes. Your employer is required to withhold these taxes before you receive your pay.
Here’s what each tax covers:
- Federal income tax: This tax goes to the federal government to fund national programs. The amount depends on your income and filing status.
- FICA taxes: The Federal Insurance Contributions Act requires contributions to Social Security and Medicare. You pay a set percentage of your income into these programs.
- State income tax: Most states charge their own income tax to fund local services, though some states have no income tax at all.
- Local taxes: Some cities or counties may deduct additional taxes from your pay.
How to calculate take-home pay
Net income, or your take-home pay, is what you actually receive after taxes, withholdings, and deductions. To calculate it, subtract federal taxes, state taxes where they apply, and any deductions from your gross pay. Everyone pays federal taxes regardless of location, but state tax requirements vary.
For example:
For example, if you live in a state with no income tax and have an annual income of $60,000, you may fall into the 22% marginal bracket under the IRS 2025 tax brackets (for single filers, the 22% bracket applies to taxable income from $48,475 to $103,349).
If we break this into monthly pay periods, your gross monthly income would be $5,000, and your net income would be around $3,980, not including deductions from health insurance, retirement contributions, or state taxes.
How to calculate your paycheck
Here’s how to manually estimate your paycheck:
- Find your gross salary or hourly rate: Check your pay stub or offer letter for your gross income.
- Calculate hours worked (if hourly): Add the hours you worked during your pay period.
- Calculate overtime pay when it applies: Multiply your hourly rate by 1.5. Then multiply that rate by the overtime hours you worked.
- Add overtime to gross income: Combine overtime pay with your regular gross income
- Determine your tax bracket: Find which federal tax bracket matches your annual income.
- Calculate federal tax: Multiply your gross income by your federal tax rate.
- Calculate state income tax (if applicable): Multiply your gross income by your state income tax rate.
- Subtract total taxes: Add federal and state taxes together. Then subtract that sum from your gross income to get your net income.
A quick example
Let’s plug in some numbers to see the process in action. For this example, you earn $20 an hour and work 40 hours every week during a monthly pay period. Here’s the formula for calculating your gross pay:
Weekly gross pay = 20×40
Your gross pay for the week would be $800. To calculate which tax income bracket you’re in, multiply your weekly gross pay by 52 (since there are 52 weeks in a year).
Annual gross pay = (20×40) x 52
Your annual gross would come out to $41,600 in this example. Since that figure falls into the federal tax bracket range of $11,925 to $48,474, you can expect to pay 12% of your annual income as taxes.
Federal income tax = 41,600 x .12
In this scenario, you’ll pay $4,992 in taxes this year. To calculate your net income for the year, subtract your taxes from your gross income:
Annual net income = 41,600 – 4,992
Your annual net income would equal $36,608. To calculate your monthly net income, divide this number by 12.
Monthly net income = 36,608/12
Your monthly net income would equal $3,051. You can use the same formula to calculate different paycheck amounts with state income tax rates and overtime payments added when applicable.
Understanding paycheck withholdings
Paycheck withholdings cover your financial obligations as a taxpayer. Employers take money from your gross pay in three forms:
- Taxes: Mandatory charges from federal and local governments to fund public services
- Social withholdings: Your contributions to Medicare and Social Security programs
- Deductions: Amounts for retirement plans, health insurance, or other benefits you choose
Your employer will share all of your relevant taxes, withholdings, and deductions on your pay stub. You can ask your employer to update your Form W-4 if you need to readjust your federal tax withholdings.
How paycheck withholdings work
Your employer calculates paycheck withholdings based on your Form W-4, which includes:
- Filing status: Whether you file as single, married filing jointly, married filing separately, or head of household
- Dependents: More allowances mean less withholding, while fewer allowances mean higher withholding
- Additional withholdings: Extra amounts you request to avoid owing taxes at year-end
State-based paycheck withholding considerations
State income tax withholding varies significantly by location. Here are the key differences:
- State-specific tax rates: Each state sets its own income tax rates based on budget requirements
- Varying tax brackets: In tiered tax systems, states often tax higher incomes at higher rates
- State-specific deductions: Allowances for education costs, property taxes, or state retirement plans
- State-specific tax credits: Credits for renewable energy investments, childcare expenses, or certain income sources
These brackets differ from federal tax brackets and are specific to each state’s tax structure. Some states have no income tax, while others use a flat rate or tiered brackets.
Here is a breakdown of income tax criteria in each state:
| States with tiered income tax ranges | States with no income tax | States with a flat income tax rate |
|---|---|---|
| Alabama Arkansas California Connecticut Delaware Hawaii Kansas Maine Maryland Massachusetts Minnesota Missouri Montana Nebraska New Jersey New Mexico New York North Dakota Ohio Oklahoma Oregon Rhode Island South Carolina Vermont Virginia West Virginia Wisconsin District of Columbia | Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming | Arizona Colorado Georgia Idaho Illinois Indiana Iowa Kentucky Louisiana Michigan Mississippi North Carolina Pennsylvania Utah |
Familiarize yourself with your state’s withholding regulations to understand how your take-home pay is affected. This will help you avoid surprises come tax season.
How to read a paycheck
Every paycheck should have the same essential parts. Here’s what each part of your paycheck means:
- Check number: A unique identification number that your employer assigns to a specific check
- Employer’s name and address: The official name and physical address of your employer or company issuing the check
- Employee’s name and address: Your name and address
- Check date: The date when the check is issued
- Payment amount: The exact sum of money you earn, in both numerical and written form
- Employer’s bank account and routing numbers: The bank account number and routing number of your employer’s account
Your paycheck will generally be in the form of your net pay, or take-home pay, for this pay period.
How to read a pay stub
A pay stub details your earnings, withholdings, and deductions each time your employer pays you.
- Pay period start and end date: The time frame for calculating this paycheck’s earnings
- Hours worked: The total number of hours you worked during the pay period
- Gross pay: Your total earnings before any deductions or taxes
- Net or take-home pay: The amount you receive after all deductions and taxes
- Federal taxes: Earnings withheld by the federal government
- State income taxes: Taxes from your state to fund local services
- Medicare and Social Security: Deductions from your paychecks for these programs
- Deductions for benefits: Contributions to health insurance and retirement plans
- Year-to-date totals: Cumulative earnings and deductions from the start of the calendar year
- Paid time off (PTO) balances: Your accrued vacation, sick leave, and other paid time off
- Wage garnishments, if they apply: These are court-ordered deductions to repay debts.
Chime tip: Even if you receive your paycheck via direct deposit, your employer should still be able to provide a digital copy of your paystub for your financial records.
Take control of your paycheck knowledge
Understanding what goes into your paycheck puts you in control of your financial planning. Whether you’re using our calculator to estimate your take-home pay, reading your pay stub for the first time, or adjusting your withholdings, you now have the tools to make informed decisions about your earnings.
Start by calculating your estimated net income with our paycheck calculator. Then review your actual pay stub to see how your withholdings break down. If your withholdings don’t match your expectations, talk to your employer about updating your Form W-4.
After determining your take-home pay, you can use our budget calculator to create a monthly spending plan.
FAQs
How often should I check my paycheck calculations?
Check your calculations at the start of each year, when you get a raise, or when you experience major life changes like getting married or having a child. These life events affect your withholdings and tax liability.
What's the difference between biweekly and semi-monthly pay?
Biweekly pay means you get paid every two weeks, for a total of 26 biweekly pay periods a year; semi-monthly pay generally means you get paid twice a month, for a total of 24 paychecks a year.
Your individual paycheck amounts differ based on which pay schedule your employer uses.
Can I change how much tax is withheld from my paycheck?
Yes, you can adjust your federal tax withholding by submitting a new Form W-4 to your employer. This may help if you find yourself owing taxes at year-end or getting a very large refund.
Why does my paycheck amount vary if I'm an hourly employee?
If you’re paid hourly, your paycheck depends on the exact number of hours you worked during that pay period. Fewer hours or overtime pay will change your gross and net pay accordingly.
How are bonuses taxed on my paycheck?
Employers typically withhold a 22% flat rate from bonuses using the flat-rate method for supplemental wages. When you file your annual return, you’ll owe your regular income tax rate on the bonus amount.