How is my paycheck calculated?+
Your gross paycheck is your annual salary divided by pay periods (24 semi-monthly, 26 biweekly, 52 weekly). From that, the calculator subtracts: federal income tax withholding (based on your W-4), Social Security tax (6.2% on wages up to $184,500 in 2026), Medicare tax (1.45% on all wages plus 0.9% Additional Medicare on wages over $200,000), state income tax (varies by state — 9 states have no tax), local tax if applicable (NYC, Philadelphia, many Ohio cities, Maryland counties, etc.), and pre-tax deductions like 401(k), HSA, and health insurance premiums.
How much taxes are taken out of my paycheck?+
Federal withholding plus FICA (Social Security + Medicare) typically takes 18-30% of gross pay before state and local tax. For a $75,000 single filer in 2026: federal withholding ~$8,970/year, FICA $5,737, totaling 19.6% federal. Add California state tax of about $3,000 (4.0% effective) and you're at 23.6% combined. In Texas with no state tax, same income would be 19.6%. High earners hit higher marginal brackets — at $200,000 single, combined federal+FICA is closer to 30%, plus Additional Medicare Tax of 0.9% on wages over $200,000.
What is the difference between gross and net pay?+
Gross pay is your full earned wages before any deductions. Net pay (take-home pay) is what hits your bank account after federal income tax withholding, FICA (Social Security + Medicare), state income tax, local tax, and voluntary pre-tax deductions like 401(k), HSA, and health insurance premiums. The gap between gross and net is typically 25-35% of gross pay depending on state and contribution choices. Pre-tax 401(k) and HSA contributions reduce taxable income, which reduces the tax taken out — so increasing those can grow your net pay less than the contribution amount.
How do I increase my take-home pay?+
Three main levers: (1) reduce taxable income via pre-tax contributions to 401(k), HSA, FSA, dependent-care FSA, and commuter benefits — each dollar contributed saves you your marginal tax rate on that dollar; (2) update your W-4 to match actual withholding to actual tax owed — most refunds are interest-free loans to the government, and adjusting allowances brings cash flow into each paycheck instead of one annual refund; (3) move to a no-tax state (Texas, Florida, Tennessee, Washington, Nevada, Wyoming, South Dakota, New Hampshire, Alaska) — at $100K income this saves $3,000-$9,000/year compared to high-tax states.
What state has the highest take-home pay?+
The 9 no-income-tax states all share the top tier for take-home pay: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. On a $100K salary, these states give you about $78,900 take-home vs $72,400 in California — a $6,500 annual gap. Of the income-tax states, those with the lowest take-home impact are typically Pennsylvania (3.07% flat), Indiana (2.95% flat), and Ohio (2.75% flat). Cost of living matters too — Texas has high property taxes, Washington has high sales tax (10%+), so the no-tax savings are partially offset by other taxes.
