Free Payroll Calculator
Estimate your take-home pay with detailed tax and deduction breakdowns
Payroll Calculation
Standard Tax Rates
Understanding Your Paycheck & Deductions
When you receive your paycheck, the amount you "take home" (Net Pay) is always lower than what you earned (Gross Pay). Here is why:
- FICA Taxes: Social Security (6.2%) and Medicare (1.45%) are mandatory federal deductions.
- Federal Income Tax: Based on your income bracket and tax filing status.
- State Income Tax: Varies by state; some states like Florida or Texas have 0% income tax.
- Local Taxes: Some cities or counties impose additional small income taxes.
Frequently Asked Questions
What is the difference between Gross and Net pay?
Gross pay is the total amount you earn before any taxes or deductions are taken out. Net pay is the "take-home" amount you actually see in your bank account.
How do I calculate my hourly rate from my salary?
Divide your annual salary by 2,080 (the average number of work hours in a year). For example, a $50,000 salary equals approximately $24.04 per hour.
How much is overtime pay?
Standard overtime is "time and a half" (1.5x your regular rate) for any hours worked over 40 in a single work week.
Are my taxes calculated automatically?
Our calculator uses standard federal and state estimates. For exact figures, always consult your W-4 form and official IRS tax tables.
Understanding Your Paycheck & Deductions
When you receive your paycheck, the amount you "take home" (Net Pay) is always lower than what you earned (Gross Pay). Here is why:
- FICA Taxes: Social Security (6.2%) and Medicare (1.45%) are mandatory federal deductions.
- Federal Income Tax: Based on your income bracket and tax filing status.
- State Income Tax: Varies by state; some states like Florida or Texas have 0% income tax.
- Local Taxes: Some cities or counties impose additional small income taxes.
Frequently Asked Questions
What is the difference between Gross and Net pay?
Gross pay is the total amount you earn before any taxes or deductions are taken out. Net pay is the "take-home" amount you actually see in your bank account.
How do I calculate my hourly rate from my salary?
Divide your annual salary by 2,080 (the average number of work hours in a year). For example, a $50,000 salary equals approximately $24.04 per hour.
How much is overtime pay?
Standard overtime is "time and a half" (1.5x your regular rate) for any hours worked over 40 in a single work week.
Are my taxes calculated automatically?
Our calculator uses standard federal and state estimates. For exact figures, always consult your W-4 form and official IRS tax tables.