Paycheck Calculator

Your paycheck shows gross pay (what you earned before deductions) and net pay (what you actually take home). The difference — often 25–35% of gross income — goes to federal income tax, state income tax, Social Security, Medicare, and any voluntary pre-tax deductions like 401(k) contributions and health insurance premiums.

Federal income tax is progressive: you pay lower rates on the first portions of income and higher rates on amounts above each bracket threshold. The 2025 federal brackets for a single filer: 10% on first $11,925; 12% on $11,925–$48,475; 22% on $48,475–$103,350; 24% on $103,350–$197,300; 32% on $197,300–$250,525; 35% on $250,525–$626,350; 37% on amounts above. "Being in the 22% bracket" doesn't mean all your income is taxed at 22% — only the portion above $48,475.

FICA taxes: Social Security (6.2% on wages up to $176,100 in 2025) and Medicare (1.45% on all wages, plus 0.9% surtax on wages above $200,000 single/$250,000 married). These are fixed-rate taxes that apply on the first dollar earned.

Pre-tax deductions reduce your taxable income: traditional 401(k) contributions, health insurance premiums, HSA contributions, and FSA contributions are all deducted before taxes are calculated. A $500/month 401(k) contribution in the 22% bracket saves $110/month in federal taxes — meaning it only reduces take-home pay by $390, not $500.

Your W-4 withholding form tells your employer how much federal tax to withhold. Claiming too many allowances results in underwithholding and a tax bill in April. Too few allowances means overwithholding and a refund — essentially giving the government an interest-free loan. Adjust your W-4 when your life situation changes (marriage, children, new job, significant income change).