How Gross Becomes Net Pay
Every paycheck loses four chunks before reaching you: federal income tax, state income tax, FICA (Social Security 6.2% to the $176,100 wage base plus Medicare 1.45% on all wages and 0.9% over $200k), and your elected deductions, pre-tax 401k and health premiums. Pre-tax 401k shrinks the income subject to federal and state tax (but not FICA), which is why raising contributions can lift your effective savings twice.
Net = Gross − Federal − State − FICA − 401k − Health (per period)
Weekly 52 · Biweekly 26 · Semimonthly 24 · Monthly 12
Worked Example
Scenario: $85,000 salary, biweekly, 18% federal, 5% state, $6,000 401k, $2,400 health
Take-Home / Check
~$2,360
Net Annual
~$61,400
FICA / Year
~$6,500
Effective Tax Rate
~27%
Biweekly pay means 26 checks, twice a year you get a third paycheck month. Plan bonuses and budgets around it with our Budget Calculator.
What the Calculator Shows
- Take-home per check, net dollars deposited each payday
- Gross per check, pre-deduction pay for comparison
- Federal, state & FICA lines, each deduction shown separately per check
- Net annual pay, true yearly spending power
- Effective tax rate, total tax divided by gross income
Raise Your Take-Home
Check your W-4, persistent large refunds mean over-withholding and smaller checks. Compare job offers on net, not gross: a $5k raise in a no-income-tax state can beat $8k in a high-tax one. Hourly workers can convert with our Salary Calculator first.