Payroll Calculator
Calculate net pay after federal tax, Social Security, Medicare, health insurance, and 401(k) deductions.
What is Payroll Calculator?
A payroll calculator determines net (take-home) pay after all withholdings and deductions from gross salary. It accounts for federal income tax, Social Security (6.2% on income up to the annual cap), Medicare (1.45%, plus 0.9% additional on high earnings), state income tax, health insurance premiums, retirement plan contributions (401k/403b), and other pre-tax deductions. The gap between gross and net pay surprises many employees — understanding all deductions helps with budgeting and optimizing tax-advantaged benefit elections.
How It Works
Enter gross pay (annual or per-period), pay frequency, filing status, and allowances. The tool calculates federal income tax using current bracket rates and standard deduction, Social Security tax (6.2% up to wage base), Medicare (1.45% + 0.9% above threshold), and any state tax. Then it applies elected deductions: health insurance premiums (pre-tax), 401k contributions (pre-tax), HSA contributions, and other benefits. Net pay = gross - all taxes - all deductions. A detailed breakdown shows each line item and its impact on take-home.
Common Use Cases
- •Estimating take-home pay from a new salary offer to understand actual disposable income
- •Modeling the paycheck impact of increasing 401k contributions for retirement planning
- •Understanding total tax burden across federal, Social Security, Medicare, and state levels
- •Calculating the net cost of electing higher health insurance tiers or adding dependents
- •Comparing bi-weekly vs semi-monthly pay frequency impact on individual paychecks
- •Planning annual withholdings to avoid large tax bills or excessive refunds at filing time
Frequently Asked Questions
What deductions are included?▼
Federal income tax, Social Security (6.2%), Medicare (1.45%), health insurance, and 401(k) contributions.
What are the current US FICA rates?▼
Social Security is 6.2% of wages up to an annual wage base that is adjusted each year, and Medicare is 1.45% with no cap. An Additional Medicare Tax of 0.9% applies above a threshold. Employers match the 6.2% and 1.45%, but not the additional 0.9%.
What is the difference between gross pay, taxable wages and net pay?▼
Gross pay is total earnings. Pre-tax deductions such as traditional 401(k) contributions and most health premiums reduce taxable wages, so income tax is computed on a lower figure. Net pay is what remains after all taxes and deductions, and it is always the smallest of the three.
Why do 401(k) contributions reduce income tax but not Social Security tax?▼
Traditional 401(k) deferrals are exempt from federal income tax but still subject to FICA, so they lower your income tax bill without reducing Social Security or Medicare withholding. Section 125 health premiums, by contrast, are usually exempt from both.
Does this include state and local taxes?▼
No. State income tax varies enormously, several states levy none at all, and some cities add their own. State disability and unemployment contributions differ too. Add your own state and local rates for a complete figure.
Why does my actual paycheck differ slightly from the estimate?▼
Employers use the IRS withholding tables and your W-4 elections, which approximate your annual liability across pay periods rather than computing exact tax each time. Bonuses are often withheld at a flat supplemental rate. Any over- or under-withholding settles when you file.
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