Understanding your paycheck breakdown is essential for financial planning. This calculator shows exactly where your money goes before it hits your bank account.
How This Calculator Works
> [!IMPORTANT] > 2024 Tax Update: Federal tax brackets have been adjusted for inflation. The standard deduction increased to $14,600 for single filers and $29,200 for married filing jointly.
This calculator determines:
- Gross Pay - Your total earnings before deductions
- Federal Income Tax - Based on brackets and filing status
- FICA Taxes - Social Security (6.2%) and Medicare (1.45%)
- State Taxes - Varies by state (some have none)
- Net Pay - What actually hits your bank account
Tax Breakdown Example
Scenario: $75,000 Annual Salary, Single Filer
| Deduction | Annual | Per Paycheck (bi-weekly) |
| Gross Pay | $75,000 | $2,885 |
| Federal Tax | $8,250 | $317 |
| Social Security | $4,650 | $179 |
| Medicare | $1,088 | $42 |
| State Tax (5%) | $3,750 | $144 |
| Net Pay | $57,262 | $2,203 |
Frequently Asked Questions
What is FICA?
FICA includes Social Security tax (6.2% up to $168,600 in 2024) and Medicare tax (1.45% on all earnings). High earners also pay an additional 0.9% Medicare tax on income over $200,000.
How do I adjust my withholding?
File a new W-4 form with your employer. If you get large refunds, increase your allowances. If you owe money at tax time, decrease them.
What's the difference between gross and net pay?
Gross pay is your total earnings. Net pay (take-home pay) is what remains after all taxes and deductions.
Are 401(k) contributions pre-tax?
Traditional 401(k) contributions are pre-tax, reducing your taxable income. This lowers your current tax bill but you'll pay taxes when you withdraw in retirement.
Key Points to Remember
- Check your paystub regularly for accuracy
- Adjust W-4 to avoid large refunds or bills
- Maximize pre-tax benefits to reduce taxable income
- FICA is fixed - you cannot avoid these taxes on earned income