About this calculator
This tool subtracts a combined tax rate plus annual non-tax deductions from gross pay to show take-home dollars per year and per month. It is the right starting point when you want a paycheck estimate without picking a specific state, bracket, or 401(k) percentage.
How it works
Net annual salary = Gross salary x (1 - tax rate) - other deductions Monthly net = Net annual / 12
- Gross salary = pre-tax annual pay including base, bonus, and overtime.
- Tax rate = combined effective federal + state + FICA, expressed as a percentage. Default 22 percent is a reasonable midpoint for a 60K to 100K single filer in a low-tax state.
- Other deductions = annual pretax dollars for health insurance, 401(k), HSA, dental, vision, or union dues.
Worked example (2026, single filer)
A single US filer earns $85,000 gross in Texas (no state income tax) and contributes $2,400 per year to health insurance.
- Federal taxable income = $85,000 minus the $15,000 standard deduction = $70,000.
- Federal tax on $70,000 single (2026 brackets): 10% on first $11,925 + 12% on next $36,550 + 22% on remaining $21,525 = $1,192.50 + $4,386 + $4,735.50 = $10,314.
- FICA = 7.65% on full gross = $85,000 x 0.0765 = $6,502.50.
- Combined effective rate = ($10,314 + $6,502.50) / $85,000 = 19.8%.
- Net = $85,000 x (1 - 0.198) - $2,400 = $68,170 - $2,400 = $65,770 per year, $5,481 per month.
Reference: 2026 combined effective rates (single filer)
| Gross salary | Federal effective | Plus FICA | Combined (no state) |
|---|---|---|---|
| $40,000 | ~6.2% | +7.65% | ~13.9% |
| $60,000 | ~9.8% | +7.65% | ~17.5% |
| $85,000 | ~12.1% | +7.65% | ~19.8% |
| $120,000 | ~15.0% | +7.65% | ~22.7% |
| $200,000 | ~19.9% | +7.65% | ~27.5% |
| $300,000 | ~24.0% | +5.4% | ~29.4% |
| $500,000 | ~28.7% | +3.6% | ~32.3% |
Federal uses 2026 brackets and the $15,000 single standard deduction. Add 4 to 10 percent for state income tax in most states (0 percent in TX, FL, WA, NV, TN, SD, WY, AK, NH).
Common mistakes
- Confusing marginal with effective rate. A 22 percent marginal bracket does not mean 22 percent of gross is federal tax; it means the next dollar is taxed at 22 percent. The effective rate is always lower.
- Forgetting the standard deduction. Taxable income is gross minus $15,000 (single 2026) or $30,000 (MFJ). Skipping this overstates federal tax by $1,500 to $7,000.
- Double-counting FICA in the tax rate. If your tax rate field already includes FICA, do not add it again in Other Deductions.
- Ignoring state income tax. California, New York, and New Jersey add 6 to 10 percent at middle incomes. Nine states levy zero.
- Using gross salary for budget planning. Rent, mortgage, and DTI ratios should use net, not gross, to avoid overspending.
- Treating bonus as taxed differently. Bonuses are withheld at a flat 22 percent supplemental rate but taxed at your marginal bracket at filing. The true tax is the bracket, not the withholding.
Related tools and glossary
Frequently asked questions
What is the difference between marginal and effective tax rate?
Your marginal rate is the bracket the next dollar falls into (22 percent for a single filer earning $80,000 in 2026). Your effective rate is total federal tax divided by gross income, which is always lower because the first $11,925 taxes at 10 percent, the next slab at 12 percent, and so on. A $100,000 single filer has a 22 percent marginal but only a 13.8 percent effective federal rate before the standard deduction.
Does this calculator include FICA, state, and local taxes?
It uses a single combined tax-rate field so you control what is included. For a US private-sector worker, a reasonable combined rate is federal effective (12 to 24 percent) plus FICA 7.65 percent plus state (0 to 10 percent). Texas, Florida, and Washington have no state income tax; California and New York add 6 to 10 percent in middle brackets.
Why is my net pay lower than this estimate?
Pretax payroll deductions reduce net pay further: health insurance premiums (~$120 to $600 per month), 401(k) contributions, HSA, FSA, dental and vision, life insurance, and parking. The 2026 401(k) limit is $23,500 for under-50s, $31,000 with catch-up at 50 plus. The Other Deductions field above lets you add these so the net number reflects the actual paycheck.
How accurate is the 22 percent default tax rate?
The 22 percent default is the 2026 marginal bracket for single filers earning $48,475 to $103,350 and is roughly the right combined federal plus FICA effective rate for a $75,000 single filer in a no-state-tax state. Add 4 to 9 percent for state income tax in most states. The 2026 single standard deduction is $15,000, so taxable income equals gross minus $15,000.
How does Social Security tax change above the wage base?
The Social Security portion of FICA (6.2 percent) only applies to wages up to the 2026 wage base of $176,100. Earnings above that cap continue to owe Medicare (1.45 percent) plus an additional 0.9 percent Medicare surtax once total wages exceed $200,000 for a single filer. So a $300,000 earner pays a blended FICA rate near 5.4 percent rather than the headline 7.65, which is why the combined effective rate flattens at high income.
Sources
- IRS Revenue Procedure 2025-32 (2026 inflation-adjusted brackets, standard deduction, and credits).
- Social Security Administration 2026 Fact Sheet (FICA wage base $176,100, 6.2% + 1.45%).
- Tax Foundation, State Individual Income Tax Rates and Brackets 2026.
- IRS Notice 2024-80 (2025 to 2026 retirement-plan contribution limits, 401(k) elective deferral $23,500).