Salary Calculator — Free Online Paycheck Estimator

How to Use the Salary Calculator

1. Enter your annual salary: Type your gross annual salary into the first field. This is your total compensation before any taxes or deductions, the figure listed in your employment contract or job offer. For example, enter 65000 for a $65,000 annual salary. The calculator accepts any positive dollar amount.
2. Select your pay frequency: Choose how often you receive a paycheck from the dropdown menu. Options include Weekly (52 paychecks per year), Biweekly (26 paychecks), Semi-Monthly (24 paychecks on the 1st and 15th), and Monthly (12 paychecks). Biweekly is the most common schedule in the United States, used by approximately 43% of employers.
3. Choose your filing status: Select Single or Married Filing Jointly. Your filing status affects standard deductions and tax bracket thresholds, though this calculator applies the flat rate you enter for simplicity. If you are married filing separately or head of household, select the option closest to your situation and adjust the federal rate accordingly.
4. Enter your federal tax rate: Input your marginal federal income tax rate. For 2026, common rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. If you are unsure of your rate, 22% applies to single filers earning $50,401 to $105,700 and is a good starting estimate for most middle-income earners.
5. Enter your state tax rate: Input your state's income tax rate. If you live in a state with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming), enter 0. For states with progressive rates, enter your marginal rate or an average effective rate.
6. Set your 401(k) contribution: Enter the percentage of your gross pay you contribute to your 401(k) retirement plan. The default of 6% represents a common employee contribution that often qualifies for the full employer match. Set to 0 if you do not participate in a retirement plan.

All results update in real time as you change inputs. Experiment with different scenarios to understand how changes in tax rates, contribution levels, or pay frequency affect your take-home pay. The annual summary section provides a comprehensive overview of your total tax burden and effective tax rate.

Salary Calculation Formula

Variables Explained

• Annual Salary: Your total gross compensation for the year before any deductions. This is the base figure from which all calculations derive.
• Pay Periods: The number of times per year you receive a paycheck. Weekly = 52, Biweekly = 26, Semi-Monthly = 24, Monthly = 12. The gross pay per period is simply your annual salary divided by the number of periods.
• Federal Tax: Calculated as Gross Pay Per Period multiplied by the federal tax rate percentage. In reality, federal tax uses progressive brackets, but this flat-rate approximation provides a useful estimate.
• State Tax: Calculated the same way as federal tax using your state's income tax rate. Rates vary from 0% to over 13% depending on your state of residence.
• Social Security: Fixed at 6.2% of gross pay, up to the annual wage base of $184,500 (2026). Your employer pays an additional matching 6.2%.
• Medicare: Fixed at 1.45% of gross pay with no income cap. Earnings above $200,000 (single) are subject to an additional 0.9% Medicare surcharge not included in this calculator.
• 401(k) Contribution: Your elected pre-tax retirement contribution as a percentage of gross pay. Reduces taxable income and is deducted before the paycheck is issued.

Step-by-Step Example

Suppose you earn $65,000 per year, are paid biweekly, with a 22% federal rate, 5% state rate, and 6% 401(k) contribution:

1. Gross pay per period: $65,000 / 26 = $2,500.00
2. Federal tax: $2,500.00 x 0.22 = $550.00
3. State tax: $2,500.00 x 0.05 = $125.00
4. Social Security: $2,500.00 x 0.062 = $155.00
5. Medicare: $2,500.00 x 0.0145 = $36.25
6. 401(k): $2,500.00 x 0.06 = $150.00
7. Net pay: $2,500.00 - $550.00 - $125.00 - $155.00 - $36.25 - $150.00 = $1,483.75

Your biweekly take-home pay would be approximately $1,483.75, resulting in an annual net income of $38,577.50. The effective deduction rate is 40.65% of gross pay, including the 401(k) contribution which builds your retirement savings.

Practical Examples

Example 1: Jessica, Entry-Level Software Developer in Texas

Jessica just landed her first job as a junior developer earning $55,000 per year in Austin, Texas. She is paid biweekly, files as single, and contributes 3% to her 401(k) to get the company match. Since Texas has no state income tax, she enters 0% for state tax. Her marginal federal rate is 22%.

• Gross per paycheck: $55,000 / 26 = $2,115.38
• Federal tax: $2,115.38 x 0.22 = $465.38
• State tax: $0.00
• Social Security: $2,115.38 x 0.062 = $131.15
• Medicare: $2,115.38 x 0.0145 = $30.67
• 401(k): $2,115.38 x 0.03 = $63.46
• Net pay: $1,424.72 per paycheck

Jessica takes home about $1,425 every two weeks. Living in Texas saves her roughly $106 per paycheck compared to a similar salary in California, which reinforces why many tech workers are relocating to no-income-tax states. Her annual take-home is approximately $37,043.

Example 2: Robert, Mid-Career Marketing Manager in New York

Robert earns $95,000 as a marketing manager in New York City. He is paid semi-monthly, files as married filing jointly, and maximizes his 401(k) match at 8%. His federal rate is 22%, and his combined state and city tax rate is 9.5%.

• Gross per paycheck: $95,000 / 24 = $3,958.33
• Federal tax: $3,958.33 x 0.22 = $870.83
• State + city tax: $3,958.33 x 0.095 = $376.04
• Social Security: $3,958.33 x 0.062 = $245.42
• Medicare: $3,958.33 x 0.0145 = $57.40
• 401(k): $3,958.33 x 0.08 = $316.67
• Net pay: $2,091.97 per paycheck

Robert's semi-monthly take-home is about $2,092, resulting in annual net income of approximately $50,207. The combined impact of New York state tax, NYC local tax, and aggressive retirement savings reduces his take-home to about 52.9% of gross. However, his 401(k) contributions of $7,600 annually are building significant retirement wealth.

Example 3: Maria, Part-Time to Full-Time Comparison

Maria is considering moving from a $30,000 part-time role to a $48,000 full-time position in Ohio. She wants to compare weekly take-home pay for both scenarios with a 4.5% state rate and no 401(k) initially. Her federal rate is 12% at the lower salary and 12% at the higher salary (both in the same bracket).

• Part-time weekly gross: $30,000 / 52 = $576.92 | Net: $576.92 - $69.23 - $25.96 - $35.77 - $8.37 = $437.59
• Full-time weekly gross: $48,000 / 52 = $923.08 | Net: $923.08 - $110.77 - $41.54 - $57.23 - $13.38 = $700.16

By moving to full-time, Maria's weekly take-home increases by $262.57 (60% more), while her gross pay increased by 60% as well. The proportional take-home increase is nearly identical because she remains in the same tax bracket. This analysis helps Maria understand that the transition to full-time work delivers the expected financial benefit without bracket creep concerns.

Example 4: David Evaluating a Raise and 401(k) Increase

David currently earns $72,000 and has been offered a raise to $80,000. He is also considering increasing his 401(k) contribution from 4% to 10%. He is paid biweekly in Colorado (state rate 4.4%), with a 22% federal rate.

• Current: $72,000, 4% 401(k) = Net $1,853.39/paycheck ($48,188/year)
• After raise only: $80,000, 4% 401(k) = Net $2,059.33/paycheck ($53,543/year)
• After raise + 401(k) increase: $80,000, 10% 401(k) = Net $1,874.88/paycheck ($48,747/year)

David discovers that even after bumping his 401(k) from 4% to 10%, his take-home pay barely changes from his pre-raise amount ($1,875 vs $1,853), while his annual retirement savings jump from $2,880 to $8,000. This demonstrates how raises can be strategically directed to retirement savings with minimal impact on daily cash flow. David decides to take the higher 401(k) contribution, effectively giving his future self a raise.

Paycheck Deduction Reference Table

Tips and Complete Guide to Understanding Your Paycheck

Understanding Federal Income Tax Brackets

The United States uses a progressive tax system, meaning different portions of your income are taxed at different rates. For 2026, a single filer's first $12,400 is taxed at 10%, income from $12,401 to $50,400 at 12%, $50,401 to $105,700 at 22%, and so on up to 37% for income over $640,600. This means that moving into a higher tax bracket does not cause all your income to be taxed at the higher rate — only the income above the bracket threshold. This is one of the most commonly misunderstood aspects of the tax system and causes unnecessary anxiety about raises and promotions.

Maximizing Your Take-Home Pay

While you cannot avoid mandatory taxes like Social Security and Medicare, there are legitimate strategies to optimize your take-home pay. Reviewing your W-4 withholding allowances ensures you are not overpaying federal taxes throughout the year. If you consistently receive large tax refunds, you are essentially giving the government an interest-free loan. Adjusting your withholding to break even at tax time puts more money in each paycheck. Additionally, pre-tax benefits like health insurance, FSAs, and commuter benefits reduce your taxable income, effectively increasing your take-home pay while providing valuable benefits.

Salary Negotiation and Total Compensation

When evaluating a job offer, base salary is just one component of total compensation. Consider the employer's 401(k) match (typically 3% to 6% of salary), health insurance premiums and coverage quality, equity or stock options, bonuses, paid time off, and other perks. A job offering $5,000 less in salary but including a 6% 401(k) match on a $75,000 salary adds $4,500 in retirement benefits, nearly closing the gap. Use the compound interest calculator to see how 401(k) matching contributions grow over your career — the long-term value often far exceeds the immediate salary difference.

Budgeting with Your Net Pay

Financial planners often recommend the 50/30/20 budgeting rule based on your after-tax income: 50% for needs (housing, food, insurance, transportation), 30% for wants (entertainment, dining, hobbies), and 20% for savings and debt repayment beyond minimums. Using the net pay figure from this calculator, you can quickly determine these budget targets. For example, if your monthly net pay is $3,500, aim for needs under $1,750, wants under $1,050, and save at least $700. Keep in mind that your 401(k) contributions come out before net pay, so they are already part of your savings plan. Use our loan calculator to factor in monthly debt payments when building your budget.

Common Mistakes to Avoid

• Confusing marginal and effective tax rates: Just because your marginal rate is 22% does not mean 22% of your entire income goes to federal tax. The effective rate is always lower due to progressive brackets. Use this distinction when evaluating raises.
• Overlooking FICA taxes in salary comparisons: When comparing job offers, do not forget that Social Security (6.2%) and Medicare (1.45%) apply to all W-2 income. These 7.65% in payroll taxes are often overlooked but significantly impact take-home pay.
• Not accounting for state tax differences: A $100,000 salary in California (top rate 13.3%) provides significantly less take-home pay than the same salary in Texas (0% state tax). Always consider state taxes when evaluating relocation or remote work opportunities.
• Avoiding 401(k) contributions to maximize take-home: While skipping retirement contributions increases your current paycheck, it costs you the employer match (free money) and tax-deferred growth. The long-term cost of not contributing far exceeds the short-term take-home boost.
• Using gross salary for budgeting: Always budget based on net (take-home) pay, not gross salary. Budgeting on gross figures leads to overspending because 25% to 40% of your gross pay never reaches your bank account.

Frequently Asked Questions