Net Pay Calculator
Net pay is what is left after everything comes out of your gross pay: federal income tax, Social Security, Medicare, state tax, and your pre-tax and post-tax deductions. It is the same number as take-home pay, and it is the figure your budget actually runs on. The free paycheck calculator above works out net pay per paycheck and per year, with every deduction listed line by line.
On the default example — $75,000 a year, paid biweekly, single, with a 5% 401(k) contribution and no state tax — net pay is $2,256.44 per paycheck, or $58,667.50 a year. Gross pay per paycheck is $2,884.62, so $628.18 per paycheck comes out. This page shows what comes out, what changes the figure, and the net pay at the salaries people ask about most.
How Net Pay Is Calculated
Net pay is gross pay minus pre-tax deductions minus all taxes. The calculator follows five steps: start with gross pay, subtract pre-tax deductions such as the 401(k) to get federal taxable wages, subtract the standard deduction to get taxable income, apply the 2026 federal tax brackets progressively, and subtract the child tax credit. Social Security and Medicare are calculated separately, on the full gross pay — a 401(k) contribution lowers federal income-tax wages but not FICA wages. State tax is applied at the rate you enter, and post-tax deductions come out last.
On the default $75,000 example, the steps are: gross pay $75,000.00, 401(k) $3,750.00, federal taxable wages $71,250.00, standard deduction $16,100.00, taxable income $55,150.00, federal tax $6,845.00, Social Security $4,650.00, Medicare $1,087.50, total tax $12,582.50, net pay $58,667.50 a year, or $2,256.44 per biweekly paycheck. The effective tax rate is 16.78% and the marginal bracket is 22%.
Step 1 — Start with gross pay
Your annual salary before any deductions. Net pay is always calculated from gross pay, never from an earlier net figure.
Step 2 — Subtract pre-tax deductions
The 401(k), health insurance, HSA or FSA, and other pre-tax deductions come out before federal tax. On the default, the 401(k) alone is $3,750.00 a year.
Step 3 — Subtract the taxes and post-tax deductions
Federal income tax, Social Security, Medicare, state tax, and any post-tax deductions such as a Roth 401(k) come out next. What is left is net pay.
Worked Examples: Net Pay at Three Salaries
Each row is a salary run through the calculator above — single, biweekly, 5% 401(k), no state tax — with the federal tax, the total tax, and the net pay per year and per paycheck.
| Gross a year | Federal tax | Social Security | Medicare | Net pay a year | Net per paycheck |
|---|---|---|---|---|---|
| $45,000 | $2,950.00 | $2,790.00 | $652.50 | $36,357.50 | $1,398.37 |
| $75,000 | $6,845.00 | $4,650.00 | $1,087.50 | $58,667.50 | $2,256.44 |
| $85,000 | $8,935.00 | $5,270.00 | $1,232.50 | $65,312.50 | $2,512.02 |
On the $45,000 salary, the federal tax is $2,950.00 a year: taxable income is $26,650 after the 401(k) of $2,250 and the $16,100 standard deduction, so 10% on the first $12,400 is $1,240 and 12% on the remaining $14,250 is $1,710. Social Security is $2,790.00 and Medicare is $652.50, for total tax of $6,392.50 and net pay of $36,357.50 a year. On the $85,000 salary, the federal tax is $8,935.00: taxable income is $64,650, so 10% on $12,400 is $1,240, 12% on $38,000 is $4,560, and 22% on the remaining $14,250 is $3,135. The effective rate is 18.16% and the marginal bracket is 22%.
How to Use the Net Pay Calculator
The calculator is the same paycheck calculator, used with your own numbers. Follow these steps and the net pay figure is exact for the inputs you enter.
- Enter your gross pay per year. If you are paid hourly, convert the hourly rate to an annual figure first.
- Pick your pay frequency. Weekly, biweekly, semimonthly, or monthly — the annual net pay is the same, but the per-paycheck figure changes.
- Pick your filing status. Single, married filing jointly, head of household, or married filing separately.
- Enter children under 17. Each one is worth a $2,200 child tax credit in 2026.
- Enter your 401(k) percentage and your age. The age sets the IRS contribution limit.
- Enter per-paycheck deductions. Health insurance, HSA or FSA, other pre-tax deductions, your state tax rate, extra withholding, and post-tax deductions.
- Read the net pay. The big number is per paycheck; the table shows the annual figure and every deduction line.
The result updates as you type. Try adding a $150 health premium and a $100 HSA contribution per paycheck to the default: net pay falls from $2,256.44 to $2,054.71 per paycheck, but the federal tax also falls, from $6,845.00 to $5,590.00 a year — because health and HSA money reduces both federal tax and FICA wages.
What Lowers Net Pay — and What Does Not
Not every deduction works the same way. The table below shows which deductions lower federal tax, which lower FICA, and which lower neither.
| Deduction | Lowers federal tax? | Lowers FICA? | 2026 limit |
|---|---|---|---|
| Traditional 401(k) | Yes | No | $24,500 ($32,500 at 50+, $35,750 at 60–63) |
| Health insurance premium | Yes | Yes | None |
| HSA contribution | Yes | Yes | $4,400 self-only / $8,750 family (2026) |
| FSA contribution | Yes | Yes | $3,400 health FSA (2026) |
| Roth 401(k) | No — after tax | No | Shares the $24,500 cap with traditional |
Health insurance premiums and HSA or FSA contributions are better than 401(k) money in one way: they reduce FICA wages too, so they save the 7.65% payroll tax as well as income tax. A Roth 401(k) contribution is the opposite: it comes out after tax, so it does not reduce this year’s tax at all, but the money grows tax-free and comes out tax-free in retirement. The calculator treats Roth contributions as a post-tax deduction for exactly that reason.
Common Mistakes About Net Pay
Most net pay confusion comes from the wrong comparison or the missing deduction.
- Budgeting on gross pay. A $75,000 salary is $2,884.62 gross per biweekly paycheck, but only $2,256.44 net. Budget on the net number.
- Forgetting that 401(k) money is still yours. The $144.23 per paycheck is saved in your retirement account, and it cut your federal tax too.
- Assuming state tax is included. The default state rate is 0%. A 5% state rate on the default paycheck costs $3,562.50 a year and cuts net pay to $2,119.42 per paycheck.
- Thinking a raise makes you poorer. Moving into a higher bracket taxes only the income inside that bracket at the higher rate. Net pay always rises when gross pay rises.
- Confusing the marginal bracket with the effective rate. The marginal bracket is 22% on the default, but the effective rate is 16.78% — the average across all the brackets.
- Treating a refund as free money. A large tax refund means you overpaid during the year. Adjusting your W-4 puts that money in your paychecks instead.
Where Net Pay Decides Things
Net pay is the number behind every money decision, and the situations below are where it matters most.
- Rent and housing. Your budget runs on net pay: $2,256.44 per biweekly paycheck is $4,888.96 a month on a $75,000 salary.
- Loan payments. A $500.95 monthly loan payment is affordable only against the net figure, not the salary.
- Job offers. Compare net pay, not salary: an $85,000 offer is $2,512.02 per biweekly paycheck after tax and a 5% 401(k).
- Retirement saving. Raising the 401(k) from 5% to 10% cuts net pay from $2,256.44 to $2,143.94 per paycheck, but saves $825 a year of federal tax.
- Health choices. A $150 health premium and $100 HSA per paycheck cut net pay to $2,054.71, but they also cut the federal tax to $5,590.00.
Tips for Accurate Results
Five habits keep the net pay estimate close to your real paycheck.
- Use your pay stub. The numbers on the stub are the inputs the calculator needs, and they are already exact.
- Enter the state rate. The default is 0%, and the estimate will be too high if your state has an income tax and you leave it there.
- Enter health and HSA amounts per paycheck. They are per-paycheck figures, not annual ones, and they reduce both federal tax and FICA.
- Remember the estimate label. Real employers withhold using IRS Publication 15-T and your W-4, per pay period. Use the IRS Tax Withholding Estimator for exact planning.
- Check the marginal bracket. It tells you what a raise or an extra deduction is worth: at 22%, each dollar of pre-tax deduction saves 22 cents of federal tax.
Net Pay Quick Answers
The figures people look up most often about net pay.
| Question | Answer |
|---|---|
| Net pay on $75,000, biweekly | $2,256.44 per paycheck, $58,667.50 a year |
| Net pay on $45,000, biweekly | $1,398.37 per paycheck, $36,357.50 a year |
| Net pay on $85,000, biweekly | $2,512.02 per paycheck, $65,312.50 a year |
| Net pay on $75,000 with 5% state tax | $2,119.42 per paycheck, $55,105.00 a year |
| Net pay on $75,000 with health $150 and HSA $100 | $2,054.71 per paycheck, $53,422.50 a year |
Related tools on this site: the main paycheck calculator, the salary calculator for converting pay, the federal tax calculator for the tax line alone, and the 401(k) calculator for what your retirement contributions become. The IRS publishes the brackets and deductions in Revenue Procedure 2025-32.
Frequently Asked Questions
What is the difference between gross pay and net pay?
Gross pay is your salary before any deductions. Net pay, or take-home pay, is what remains after federal income tax, Social Security, Medicare, state tax, and your pre-tax and post-tax deductions. On a $75,000 salary the difference is $16,332.50 a year.
What is my net pay on a $75,000 salary?
For a single filer paid biweekly with a 5% 401(k) contribution and no state tax, net pay is $58,667.50 a year, or $2,256.44 per paycheck. Gross pay per paycheck is $2,884.62.
Does a 401(k) reduce my net pay?
Yes, but the money is not lost — it is saved in your retirement account, and it cuts your federal tax. Raising the 401(k) from 5% to 10% on $75,000 cuts net pay from $2,256.44 to $2,143.94 per paycheck and saves $825 a year of federal tax.
Does health insurance reduce net pay?
Yes, but less than the premium itself, because health premiums reduce both federal tax and FICA. A $150 premium per paycheck is $3,900.00 a year, but net pay falls by less than that, because the tax also falls.
How can I increase my net pay?
Raise your pre-tax deductions, such as 401(k) or HSA contributions — but those move money to savings, not to spending. Check your W-4 withholding, since over-withholding gives the government an interest-free loan that returns as a refund. A raise is the only way to increase net pay without reducing savings.
Disclaimer: This calculator gives an annualized estimate for general information only and is not tax advice. Real payroll withholding follows IRS Publication 15-T and your W-4. State tax rules, local taxes, and refundable credits are simplified or not included. Talk to a tax professional for your situation.