Take-Home Pay Calculator: How Much of Your Salary Do You Keep?
Quick Answer
To calculate take-home pay, start with your gross salary and subtract federal income tax (based on your 2026 tax bracket), Social Security (6.2% up to $176,100), Medicare (1.45%), state income tax, and pre-tax deductions like 401(k) contributions and health insurance premiums. Most workers keep 65–80% of their gross pay depending on income level, filing status, and state.
- *FICA taxes take 7.65% off every paycheck, regardless of income.
- *Federal income tax is marginal — only income above each bracket threshold is taxed at the higher rate.
- *Pre-tax deductions (401k, HSA, FSA) reduce taxable income and lower your tax bill.
- *A $75,000 salary nets roughly $56,000–$58,000 after federal tax and FICA for a single filer.
What Is Take-Home Pay?
Take-home pay — also called net pay — is the amount deposited into your bank account after all deductions. It starts with your gross pay (your salary or hourly wages before anything is removed) and subtracts federal income tax, FICA taxes, state income tax, and any voluntary deductions like retirement contributions and health insurance premiums.
According to the Bureau of Labor Statistics, the median weekly earnings for full-time workers in the U.S. reached $1,165 in Q4 2025— roughly $60,580 annually. But what workers actually bring home is considerably less once taxes and deductions run their course.
The 2026 Federal Income Tax Brackets
The IRS uses a progressive marginal tax system. You don't pay a flat rate on all your income — you pay each rate only on income within that bracket. For 2026, the federal income tax brackets for single filers are:
| Tax Rate | Taxable Income (Single) | Taxable Income (Married Filing Jointly) |
|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
The standard deduction for 2026 is $15,000 for single filers and $30,000 for married filing jointly. This amount is subtracted from your gross income before the brackets apply, which is why a single person earning $65,000 doesn't pay taxes on the full $65,000 — they pay on $50,000 after the standard deduction.
For a deep dive into the brackets, see our 2026 Federal Tax Brackets guide.
FICA Taxes: Social Security and Medicare
FICA taxes are separate from income tax and apply to every W-2 employee. They fund Social Security and Medicare, and they come off your paycheck before you ever see a dollar.
In 2026, per the Social Security Administration:
- Social Security: 6.2% on wages up to $176,100 (the wage base). Once you earn $176,100, Social Security taxes stop for the year.
- Medicare: 1.45% on all wages with no cap.
- Additional Medicare surtax: 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly). Your employer withholds this automatically once your wages cross $200,000.
Combined standard FICA is 7.65%. Your employer also pays a matching 7.65% — it just doesn't show up on your pay stub. For self-employed workers, both halves add up to 15.3%, covered in our self-employment tax guide.
See also: FICA Tax Guide: What It Is and How It Works
Gross Pay vs Net Pay: Real Examples
The table below shows estimated annual take-home pay for single filers in 2026, assuming no pre-tax deductions and no state income tax (to isolate federal and FICA).
| Gross Salary | Federal Income Tax | FICA Tax | Est. Net Pay | % Kept |
|---|---|---|---|---|
| $40,000 | $2,969 | $3,060 | $33,971 | 84.9% |
| $60,000 | $6,174 | $4,590 | $49,236 | 82.1% |
| $75,000 | $9,486 | $5,738 | $59,776 | 79.7% |
| $100,000 | $15,009 | $7,650 | $77,341 | 77.3% |
| $150,000 | $29,127 | $9,933 | $110,940 | 73.9% |
| $200,000 | $44,427 | $13,266 | $142,307 | 71.2% |
Add state income tax (which ranges from 0% in Texas, Florida, and Nevada to 13.3% at the top in California) and these figures drop further. Use our Take-Home Pay Calculator to get state-specific estimates.
6 Deductions That Reduce Your Take-Home Pay
Your pay stub subtracts more than just taxes. Here are the six most common deductions, ranked by how much they typically reduce take-home pay:
1. Federal Income Tax Withholding
The biggest single deduction for most workers. Your employer uses IRS Publication 15-T withholding tables to estimate your annual tax liability and spread it across paychecks. Adjusting your W-4 allowances changes how much is withheld each period.
2. FICA (Social Security + Medicare)
A flat 7.65% on every paycheck, no exceptions. Unlike income tax, there's no standard deduction, no credits, and no withholding adjustments. It applies from dollar one.
3. State Income Tax
Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. The rest range from 2.9% (North Dakota) to 13.3% (California's top marginal rate). For a $75,000 earner in California, state tax can add another $5,000–$6,000 in annual withholding.
4. Employer-Sponsored Health Insurance
The average employee contribution for employer-sponsored family coverage was $6,575 per year in 2025, per the Kaiser Family Foundation. These premiums are typically deducted pre-tax through a Section 125 cafeteria plan, reducing taxable income.
5. Retirement Contributions (401k, 403b)
Contributing to a traditional 401(k) reduces your taxable income dollar for dollar. The 2026 IRS 401(k) contribution limit is $23,500 (plus $7,500 catch-up for workers 50 and older). Maxing your 401(k) at $23,500 on a $100,000 salary cuts your federal taxable income to $61,500, saving roughly $5,000+ in federal tax. See our 401(k) contribution limits guide.
6. Other Pre-Tax Benefits
HSA contributions (up to $4,300 single / $8,550 family in 2026), FSA elections, dental and vision premiums, and commuter benefits all reduce taxable income and shrink your tax bill. These are some of the most underutilized ways to increase effective take-home pay.
How Pre-Tax Deductions Work (and Why They Actually Help)
A common misconception: “If I contribute $500/month to my 401(k), my take-home pay drops by $500.” That's not accurate.
Because the $500 contribution is pre-tax, it reduces your taxable income by $500 first. If you're in the 22% federal bracket, the tax savings is $110. So your net paycheck only drops by $390, not $500 — and you still get the full $500 invested.
Here's how pre-tax contributions reduce your tax burden for a single filer in the 22% federal bracket:
| Contribution | Annual Amount | Federal Tax Saved (22%) | Net Cost to Take-Home Pay |
|---|---|---|---|
| 401(k) max | $23,500 | $5,170 | $18,330 |
| HSA (single) | $4,300 | $946 | $3,354 |
| FSA (healthcare) | $3,300 | $726 | $2,574 |
| Health insurance | $2,400 | $528 | $1,872 |
The tax savings are real money. A worker who maximizes all pre-tax options above could reduce their federal tax bill by over $7,000 per year.
How to Read Your Pay Stub
Every pay stub should show:
- Gross pay: Your earnings before deductions for this pay period.
- Federal income tax withheld: Based on your W-4 and the IRS withholding tables.
- Social Security withheld: Should be exactly 6.2% of gross pay (until you hit the wage base).
- Medicare withheld: Should be 1.45% of gross pay (or 2.35% once wages exceed $200,000).
- State tax withheld: Depends on your state.
- Pre-tax deductions: 401(k), HSA, FSA, health insurance — listed before tax calculations.
- Net pay: The final number — what you actually receive.
If the Social Security or Medicare withholding on your stub doesn't match these percentages, check with your HR department. Errors in FICA withholding do happen, and you're responsible for ensuring the right amount reaches the IRS. See our guide on reading your pay stub for more detail.
Strategies to Increase Your Take-Home Pay
Adjust Your W-4
If you consistently get a large tax refund, you're over-withholding — giving the IRS an interest-free loan all year. Updating your W-4 to reflect accurate deductions and tax credits reduces withholding and increases each paycheck. Our W-4 withholding guide walks through the process.
Maximize Pre-Tax Contributions
Every dollar routed pre-tax to a 401(k), HSA, or FSA reduces taxable income and the taxes withheld from each check. For a 22% bracket earner, this is a guaranteed 22% return on every dollar (plus FICA savings on 401k contributions).
Claim All Eligible Tax Credits
The Earned Income Tax Credit, Child Tax Credit, and Child and Dependent Care Credit can dramatically reduce your tax liability. These don't affect paycheck withholding directly, but they reduce your year-end tax bill and may generate a refund you can recapture through W-4 adjustment.
Consider a No-Income-Tax State
Remote workers in high-tax states who are free to relocate can effectively give themselves a meaningful raise by moving to a no-income-tax state. A $150,000 earner in California pays roughly $12,000 in state income tax — that's cash that would stay in their pocket in Texas or Florida.
See your exact take-home pay
Try our free Take-Home Pay Calculator →Also useful: Paycheck Calculator • FICA Tax Calculator • W-4 Withholding Calculator
Frequently Asked Questions
How do I calculate my take-home pay?
To calculate take-home pay, start with your gross salary and subtract federal income tax (based on your bracket and filing status), Social Security tax (6.2% up to $176,100), Medicare tax (1.45%), state income tax, and pre-tax deductions like 401(k) contributions and health insurance premiums. What remains is your net pay.
What percentage of my paycheck goes to taxes?
Most workers pay between 20% and 35% of gross pay in combined federal, FICA, and state taxes. A single filer earning $60,000 typically loses about 22–25% to taxes before state taxes. FICA alone takes 7.65% off the top regardless of income level.
What is FICA tax and how much is it in 2026?
FICA stands for Federal Insurance Contributions Act. In 2026 employees pay 6.2% for Social Security on wages up to $176,100, plus 1.45% Medicare on all wages. High earners pay an additional 0.9% Medicare surtax on wages above $200,000 (single) or $250,000 (married). Total standard FICA: 7.65%.
Do pre-tax deductions reduce my take-home pay?
Pre-tax deductions like 401(k) contributions, HSA deposits, and FSA elections reduce your taxable income — not your gross pay. So a $500/month 401(k) contribution reduces your taxable income by $500, cutting your federal tax bill while only modestly reducing your take-home compared to the full $500.
How much of a $75,000 salary do I take home?
A single filer earning $75,000 in 2026 with no pre-tax deductions takes home approximately $56,000–$58,000 after federal income tax and FICA — roughly 75–77% of gross pay. Add state income tax and the number drops further. States like Texas and Florida take zero additional income tax.
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions — your salary or hourly rate times hours worked. Net pay (take-home pay) is what lands in your bank account after federal taxes, FICA, state taxes, health insurance, retirement contributions, and any other deductions have been subtracted.