How to Calculate Take-Home Pay: 2026 Formula
Take-home pay is your gross salary minus federal income tax, FICA of 7.65%, state and local tax, and any pre-tax deductions such as 401(k) or health insurance. For most US workers net pay lands between 70% and 85% of gross.
Take-home pay (net pay) is your gross pay minus federal income tax, FICA (7.65%), state and local income tax, and any pre-tax or post-tax deductions. Most US workers keep roughly 70%–85% of gross pay.
Step-by-step: how to calculate take-home pay
- Start with gross pay for the year (salary, or hourly rate × hours).
- Subtract pre-tax deductions such as traditional 401(k) and health premiums.
- Subtract the 2026 standard deduction ($16,100 single, $32,200 married filing jointly) to get taxable income.
- Apply the federal brackets (10%, 12%, 22%, 24%…) to taxable income.
- Add FICA: 6.2% Social Security up to $184,500 plus 1.45% Medicare.
- Add state and local income tax where it applies.
- Subtract all taxes and deductions from gross, then divide by your pay periods.
Worked example: $60,000 salary in 2026
A single filer earning $60,000 in a state with no income tax: taxable income is $60,000 − $16,100 = $43,900. Federal tax is $1,240 (10% of $12,400) + $3,780 (12% of $31,500) = $5,020. FICA is $4,590. Net pay is about $50,390 a year, or roughly $1,938 every two weeks.
| Gross salary | Federal tax | FICA | Net (no state tax) | Net per biweekly check |
|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $34,320 | $1,320 |
| $60,000 | $5,020 | $4,590 | $50,390 | $1,938 |
| $80,000 | $8,990 | $6,120 | $64,890 | $2,496 |
| $100,000 | $13,390 | $7,650 | $78,960 | $3,037 |
Figures assume a single filer, standard deduction and no pre-tax deductions. State income tax lowers these numbers in most states.
What changes your take-home pay
- Filing status and W-4 settings change how much federal tax is withheld.
- Pre-tax 401(k) contributions cut federal and most state income tax, but not FICA.
- Your state: nine states have no tax on wages, while others reach above 9%.
- Pay frequency changes each check, not the annual total.
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Open the calculatorFrequently asked questions
How do I calculate my take-home pay?
Subtract pre-tax deductions, federal income tax, 7.65% FICA and state tax from gross pay, then divide by your number of pay periods.
What percentage of my paycheck goes to taxes?
For typical salaries, total taxes take 15%–30% of gross pay, depending on income, filing status and state.
How much is $60,000 a year after taxes?
For a single filer in a state with no income tax, about $50,390 a year in 2026, or roughly $1,938 per biweekly paycheck.
Which states have no income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.