Salary Calculator

Number of tax allowances claimed (typically 0-3)

How do I calculate my take-home pay from my salary?

Enter your salary amount and select the pay frequency (hourly, weekly, monthly, or annual). Choose your filing status, state, and number of allowances. The calculator will automatically compute federal tax, state tax, Social Security, and Medicare deductions to show your net take-home pay.

What taxes are included in the salary calculator?

The calculator includes Federal income tax (using 2024 progressive tax brackets), State income tax (for all 50 US states), Social Security tax (6.2% up to the wage base limit of $168,600), and Medicare tax (1.45% plus additional 0.9% for high earners over $200,000 for single filers or $250,000 for married filers).

How do I convert hourly wage to annual salary?

Select "Hourly" as your pay frequency, enter your hourly rate and hours per week (default is 40 hours for full-time). The calculator will automatically convert to weekly, biweekly, monthly, and annual salary amounts. For example, $25/hour at 40 hours/week equals $52,000 annually.

What is the difference between gross and net salary?

Gross salary is your total pay before any deductions - this is what employers advertise in job postings. Net salary (take-home pay) is what you actually receive in your paycheck after federal tax, state tax, Social Security, and Medicare are deducted from your gross pay. The difference can be 20-35% depending on your income level and location.

How accurate are the tax calculations?

The calculator uses 2024 federal tax brackets and current state tax rates to provide estimates. It includes standard deductions and allowances. However, actual taxes may vary based on additional deductions, credits, retirement contributions, health insurance premiums, and specific circumstances. Always consult a tax professional or use official IRS tools for precise calculations.

What is FICA tax?

FICA (Federal Insurance Contributions Act) tax includes two components: Social Security tax (6.2% of wages up to $168,600 in 2024) and Medicare tax (1.45% of all wages). High earners pay an additional 0.9% Medicare tax on wages over $200,000 for single filers or $250,000 for married filing jointly. Your employer matches these contributions.

Which states have no income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you work in one of these states, your take-home pay will be higher since you only pay federal taxes and FICA, not state income tax.

What are tax allowances and how do they affect my paycheck?

Tax allowances (or exemptions) reduce the amount of income subject to federal withholding. Each allowance reduces your taxable income by approximately $4,700. More allowances mean less tax withheld from each paycheck, resulting in higher take-home pay but potentially owing taxes at year-end. Fewer allowances mean more tax withheld and a smaller paycheck, but likely a refund when you file taxes. Most people claim 0-3 allowances.