Payroll Calculator - Calculate Net Pay, Federal & State Taxes, FICA Deductions

Payroll Calculator

Calculate your net pay with accurate federal and state tax calculations. Get detailed breakdown of all deductions including FICA taxes, 401(k) contributions, and health insurance premiums for all US states.

Your monthly gross pay of $5000.00 results in a net pay of $2664.00 (53.3% take-home rate) after $2336.00 in total deductions.

Net Pay
$2664.00
53.3% take-home rate
Federal Tax
$990.00
State Tax
$418.50
Social Security
$310.00
Medicare
$72.50
401(k)
$300.00
Health Insurance
$200.00

Annual Summary

Annual Gross:$60,000
Annual Net:$31,968

Complete Guide to Payroll Calculations and Tax Deductions

Understanding Your Paycheck

Your paycheck reflects various deductions from your gross pay to arrive at your net pay. Understanding these deductions helps you plan your finances and optimize your tax strategy through pre-tax benefits and retirement contributions.

Our payroll calculator provides accurate calculations for all US states, accounting for federal tax brackets, state-specific tax rates, and current FICA tax rates.

Key Payroll Components

  • Gross Pay: Total earnings before deductions
  • Federal Income Tax: Based on tax brackets and filing status
  • State Income Tax: Varies by state (9 states have no income tax)
  • FICA Taxes: Social Security (6.2%) and Medicare (1.45%)
  • Pre-tax Deductions: 401(k), health insurance, FSA
  • Net Pay: Your take-home amount after all deductions

Federal Tax Brackets and Calculations

2024 Federal Tax Brackets

Federal income tax uses a progressive tax system with rates from 10% to 37%. Your effective tax rate is typically lower than your marginal rate due to the progressive structure.

Tax RateSingle FilersMarried Filing Jointly
10%$0 - $11,000$0 - $22,000
12%$11,001 - $47,150$22,001 - $94,300
22%$47,151 - $100,525$94,301 - $201,050
24%$100,526 - $191,950$201,051 - $383,900

State Tax Considerations

No State Income Tax States

Nine states don't impose state income tax on wages:

  • • Alaska
  • • Florida
  • • Nevada
  • • New Hampshire*
  • • South Dakota
  • • Tennessee*
  • • Texas
  • • Washington
  • • Wyoming

*NH and TN tax investment income only

Highest State Tax Rates

States with highest marginal tax rates:

  • • California: 13.3%
  • • Hawaii: 11%
  • • New Jersey: 10.75%
  • • Oregon: 9.9%
  • • Minnesota: 9.85%
  • • New York: 8.82%

Rates shown are top marginal rates

FICA Taxes and Social Security

Understanding FICA Contributions

FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare programs. Both you and your employer contribute equal amounts.

Social Security Tax
  • • Rate: 6.2% (employee) + 6.2% (employer)
  • • 2024 wage base: $160,200
  • • Maximum annual contribution: $9,932.40
Medicare Tax
  • • Rate: 1.45% (employee) + 1.45% (employer)
  • • No wage base limit
  • • Additional 0.9% on high earners

Pre-Tax Benefits and Deductions

Maximizing Pre-Tax Savings

Pre-tax deductions reduce your taxable income, lowering your federal and state income taxes. Common pre-tax benefits include:

Retirement Contributions
  • • 401(k): $23,000 limit (2024)
  • • 403(b): $23,000 limit (2024)
  • • Catch-up contributions: Additional $7,500 (age 50+)
Health Benefits
  • • Health insurance premiums
  • • Health Savings Account (HSA)
  • • Flexible Spending Account (FSA)
  • • Dependent care assistance

Payroll Calculation Tips

Optimize Your Withholding

  • Review W-4: Update after life changes
  • Adjust Allowances: Avoid large refunds or payments
  • Additional Withholding: Use for side income
  • Quarterly Reviews: Check year-to-date totals

Maximize Take-Home Pay

  • 401(k) Match: Always get full employer match
  • HSA Contributions: Triple tax advantage
  • Pre-tax Benefits: Use all available options
  • State Considerations: Factor in state tax rates

Start Calculating Your Payroll Today

Use our comprehensive payroll calculator to understand your take-home pay and optimize your tax strategy. Our calculator accounts for current tax rates, all US states, and common deductions to provide accurate results for your financial planning.

Whether you're evaluating a job offer, planning your budget, or optimizing your withholding, our payroll calculator provides the detailed breakdown you need to make informed financial decisions.