Net Income Calculator
Calculate net take-home pay from gross salary after taxes, Social Security, Medicare, health insurance, and 401(k).
Returns monthly and annual net income.
Net income is the amount of money you actually take home after all taxes and deductions are subtracted from your gross (total) salary.
Net Income = Gross Income - Federal Tax - State Tax - Social Security - Medicare - Other Deductions
What each deduction means:
- Federal tax — ranges from 10% to 37% depending on your income bracket. Most people fall in the 12-24% range.
- State tax — varies from 0% (states like Texas, Florida, Nevada) to as high as 13.3% (California). Nine US states have no state income tax.
- Social Security (FICA) — a flat 6.2% on income up to $168,600 (2024 cap). Income above this cap is not subject to Social Security tax.
- Medicare — a flat 1.45% on all income. High earners pay an additional 0.9% on income above $200,000.
- Other deductions — includes health insurance premiums, retirement contributions (401k, 403b), HSA contributions, and union dues.
Monthly and biweekly breakdowns:
Net Monthly = Annual Net Income / 12
Net Biweekly = Annual Net Income / 26
Practical example: On a $75,000 salary with 22% federal tax, 5% state tax, standard Social Security and Medicare: Federal = $16,500, State = $3,750, SS = $4,650, Medicare = $1,088. Net annual = $49,012, or about $4,084 per month.
Tips: Pre-tax deductions like 401k contributions and health insurance reduce your taxable income, so they save you more than the same amount taken after tax. Use this calculator to see how changes in retirement contributions affect your take-home pay.