What is the difference between gross pay and net pay?

Gross pay is your total salary or hourly wages before any taxes or deductions are taken out. Net pay (take-home pay) is the actual amount of money deposited into your bank account after federal taxes, state taxes, FICA, and benefits are deducted.

FICA stands for the Federal Insurance Contributions Act. It is a mandatory 7.65% payroll tax deducted from every W-2 employee's paycheck. It funds Social Security (6.2%) and Medicare (1.45%).

How do pre-tax deductions affect my paycheck?

Pre-tax deductions (like traditional 401(k) contributions and health insurance premiums) lower your taxable gross income. Because your taxable income is lower, you pay less in income tax, meaning a $100 deduction to your 401(k) might only reduce your actual take-home pay by $75.

Why are some months different when paid bi-weekly?

If you are paid bi-weekly (every two weeks), you receive 26 paychecks a year. Since there are 12 months, you will typically receive two paychecks per month. However, there will be two 'magic months' every year where you receive three paychecks.

Paycheck Calculator

Stop guessing what your next paycheck will look like. Accurately calculate your net take-home pay by subtracting federal taxes, state taxes, FICA, and your 401(k) contributions.

Income & Frequency

Annual Gross Salary

Pay Frequency

Est. State Tax

Pre-Tax Deductions

401k / 403b

Health Ins. (Per Check)

Net Take-Home Pay

$1,682/ check

This is the actual amount deposited into your bank account per pay period.

Total Annual Net

$43,726

Your total take-home pay for the year.

Total Deducted

$1,203

Taxes and benefits per check.

Paycheck Breakdown

Gross Pay$2,885

401k & Healthcare-$294

FICA (SS & Med)-$209

Fed & State Tax-$699

NET PAY$1,682

How to Use the Paycheck Calculator

Using our paycheck calculator is simple and requires no registration:

Enter your Annual Gross Salary (your total pre-tax compensation).
Select your Pay Frequency (e.g., Bi-weekly, Semi-monthly).
Enter your estimated State Tax rate (use 0% if you live in a tax-free state like Texas or Florida).
Input any Pre-Tax Deductions, such as the percentage you contribute to your 401(k) or your per-paycheck health insurance premium.
The calculator will determine your exact net take-home pay per check, and provide an annualized breakdown of your taxes.

Why Use a Paycheck Calculator?

A $100,000 salary doesn't mean you have $100,000 to spend. This Paycheck Calculator cuts through the illusion of gross income, showing you the mathematical reality of your take-home pay so you can accurately budget for rent, savings, and living expenses.

How to Calculate Your Net Take-Home Pay in 2026

When you receive a job offer for $100,000 a year, you are not actually going to take home $100,000. Your "Gross Pay" is heavily reduced by a series of mandatory taxes and voluntary deductions before the money ever reaches your bank account.

Understanding the difference between Gross Pay and Net Pay is the foundation of personal finance. A paycheck calculator allows you to accurately budget your life based on the money you actually receive, rather than the money you technically earn.

The Three Mandatory Taxes

Every W-2 employee in the United States is subject to three main payroll taxes that are automatically withheld by your employer:

Federal Income Tax: This is based on a progressive tax bracket system. The percentage you pay increases as your income increases.
FICA Taxes (7.65%): This is a flat tax that funds Social Security (6.2%) and Medicare (1.45%). Every employee pays this, and your employer pays a matching 7.65% on your behalf.
State Income Tax: Depending on where you live, your state will take an additional percentage. (Note: States like Texas, Florida, and Nevada have no state income tax).

The Power of Pre-Tax Deductions

Not all deductions are bad. Some deductions actually save you money by lowering your "Taxable Gross Income." These are known as Pre-Tax Deductions.

Common Pre-Tax Deductions

If you earn $5,000 a month but put $500 into a traditional 401(k), the government will only tax you as if you earned $4,500. This lowers your immediate tax bill while building your retirement wealth.

• 401(k) and 403(b) Retirement Contributions
• Health, Dental, and Vision Insurance Premiums
• Health Savings Accounts (HSA)
• Flexible Spending Accounts (FSA)

Bi-Weekly vs. Semi-Monthly

One of the most confusing aspects of salaried compensation is pay frequency. It is critical to know exactly how your employer processes payroll:

Bi-Weekly (26 Checks): You are paid every two weeks (e.g., every other Friday). Because there are 52 weeks in a year, you will experience two "magic months" where you receive three paychecks instead of two.
Semi-Monthly (24 Checks): You are paid twice a month on specific dates (e.g., the 1st and 15th). Your checks will be slightly larger than bi-weekly checks, but you will only ever get two checks a month.
Monthly (12 Checks): You receive one large check per month.
Weekly (52 Checks): Most common for hourly or retail workers.