Payroll Tax Calculator
Estimates an employee's net take-home pay by deducting federal, state, Social Security, and Medicare taxes from gross pay. Use it for paycheck planning, budgeting, or verifying payroll accuracy.
About this calculator
Net pay is what an employee actually receives after mandatory payroll deductions. The core formula used here is: Net Pay = Gross Pay − (Gross Pay × Federal Rate) − (Gross Pay × State Rate) − (Gross Pay × Social Security Rate) − (Gross Pay × 0.0145). The 0.0145 (1.45%) represents the employee's Medicare tax, which is fixed by federal law. Social Security is typically 6.2% for employees (up to the annual wage base). Federal and state withholding rates vary based on filing status, allowances, and state law. This calculator lets you enter your specific rates to get a personalized net pay estimate. Note that other voluntary deductions such as health insurance premiums or 401(k) contributions are not included here.
How to use
Suppose an employee earns $4,000 gross pay per month, with federal withholding of 22%, state withholding of 5%, and Social Security of 6.2%. Net Pay = $4,000 − ($4,000 × 0.22) − ($4,000 × 0.05) − ($4,000 × 0.062) − ($4,000 × 0.0145). That's $4,000 − $880 − $200 − $248 − $58 = $2,614 net pay per month. Enter those values into the calculator to confirm instantly without manual arithmetic.
Frequently asked questions
What is the difference between gross pay and net pay on a paycheck?
Gross pay is the total amount earned before any deductions — it's your salary or hourly wages times hours worked. Net pay, often called 'take-home pay,' is what remains after federal income tax withholding, state income tax, Social Security (6.2%), and Medicare (1.45%) are subtracted. Additional voluntary deductions such as health insurance premiums, 401(k) contributions, or union dues reduce net pay further. Understanding both figures helps employees budget accurately and helps employers verify payroll costs.
How do I find my federal income tax withholding rate for payroll?
Your federal withholding rate depends on your W-4 form, filing status (single, married filing jointly, etc.), and any additional withholding amounts you've requested. The IRS Tax Withholding Estimator at irs.gov is the most accurate tool for determining a precise rate. For this calculator, you can use your effective federal tax rate — total federal tax owed divided by gross income — from your prior year's tax return as a reasonable approximation. Keep in mind that withholding is an estimate; you may owe or receive a refund when you file.
Why is Social Security tax different from Medicare tax on my paycheck?
Social Security and Medicare are both components of FICA (Federal Insurance Contributions Act) taxes, but they fund separate programs and carry different rates. Social Security is taxed at 6.2% for employees, but only up to an annual wage base ($168,600 in 2024); earnings above that threshold are no longer subject to Social Security tax. Medicare is taxed at 1.45% with no wage cap, and high earners (above $200,000 for single filers) pay an additional 0.9% surtax. Employers match both the Social Security and standard Medicare rates, effectively doubling the total contribution to these programs.