Calculate My Paycheck: Gross Pay, Taxes, and Take-Home Pay

Searching calculate my paycheck means you want to estimate take-home pay. Your paycheck starts with gross pay — what you earn before anything is subtracted — and ends with net pay — what actually lands in your bank account. Between the two, taxes and deductions take their share.

Use our Paycheck Calculator for a quick estimate tailored to your situation.

Step 1: Calculate Gross Pay

Gross pay is your earnings before any deductions.

For Hourly Workers

Gross pay = Hourly rate × Hours worked

Example: You earn $22/hour and worked 40 hours this week.

22 × 40 = $880 gross pay

Overtime Pay

If you work more than 40 hours in a week, federal law in the US requires overtime pay for most non-exempt employees at 1.5× the regular rate for those extra hours.

Example: $22/hour base rate, 45 hours worked:

• Regular: 40 × $22 = $880
• Overtime: 5 × $33 = $165
• Total gross pay = $1,045

For Salaried Workers

Gross paycheck = Annual salary ÷ Number of pay periods per year

Example: $72,000 annual salary, paid biweekly (26 pay periods):

$72,000 ÷ 26 = $2,769.23 gross pay per paycheck

Common Pay Frequencies

Pay Frequency	Paychecks per Year	Common For
Weekly	52	Hourly workers, construction
Biweekly	26	Most common for salaried employees
Semimonthly	24	Office/professional roles
Monthly	12	Some executive/international roles

Note: Biweekly (every 2 weeks) and semimonthly (twice a month) sound similar but produce different paycheck amounts for the same annual salary.

Step 2: Deduct Federal Income Tax

Federal income tax is withheld based on your W-4 form filing status and allowances. The tax is progressive — different portions of your income are taxed at different rates.

For a rough estimate, employees can use the IRS withholding estimator or apply their effective tax rate. For a quick rule of thumb:

Annual Income	Rough Federal Effective Rate
Under $30,000	~8–12%
$30,000–$70,000	~12–17%
$70,000–$150,000	~17–22%
$150,000–$400,000	~22–28%

Actual withholding depends on your W-4 settings, additional income, deductions, and credits.

Step 3: Deduct FICA Taxes

FICA stands for Federal Insurance Contributions Act and covers Social Security and Medicare.

• Social Security: 6.2% of gross pay, up to the annual wage base ($168,600 for 2024)
• Medicare: 1.45% of gross pay (no wage limit)
• Additional Medicare tax: 0.9% on earnings over $200,000 (single filers)

Combined, employees pay 7.65% in FICA on most earnings.

Example: $1,500 gross paycheck:

• Social Security: $1,500 × 0.062 = $93.00
• Medicare: $1,500 × 0.0145 = $21.75
• Total FICA = $114.75

Step 4: Deduct State and Local Taxes

State income tax varies significantly:

Tax Situation	What to Expect
No state income tax	WA, TX, FL, NV, and others — $0 state withholding
Low state tax	Many states: 2–5%
Higher state tax	California up to 13.3%, New York up to 10.9%

Some cities and counties also have local income taxes (New York City, Philadelphia, and others).

Step 5: Subtract Pre-Tax Deductions

Pre-tax deductions reduce your taxable income before taxes are calculated, which lowers your overall tax bill.

Common pre-tax deductions:

• 401(k) contributions — typically 3–10% of gross pay
• Health insurance premiums — varies widely
• HSA contributions (Health Savings Account)
• FSA contributions (Flexible Spending Account)
• Dental and vision premiums

Step 6: Subtract Post-Tax Deductions

Post-tax deductions come out after taxes are calculated and do not reduce taxable income:

• Roth 401(k) contributions
• Life insurance premiums (some plans)
• Garnishments (court-ordered)
• Union dues

Full Paycheck Calculation Example

Suppose you earn $65,000/year paid biweekly in a state with 5% income tax. You contribute 5% to a traditional 401(k) and pay $200/month for health insurance.

Gross pay per check: $65,000 ÷ 26 = $2,500

Pre-tax 401(k): $2,500 × 0.05 = $125

Health insurance: $200 ÷ 2 = $100 (semi-monthly split applied to biweekly here for simplicity)

Adjusted gross for tax purposes: $2,500 − $125 − $100 = $2,275

Federal income tax (estimate ~18% effective): $2,275 × 0.18 ≈ $410

FICA: $2,500 × 0.0765 = $191

State tax (5%): $2,275 × 0.05 = $114

Net take-home pay: $2,500 − $125 − $100 − $410 − $191 − $114 = ~$1,560

This is a simplified estimate. Actual withholding tables and your W-4 settings will produce a different number.

Gross Pay vs Net Pay Summary

Term	Meaning
Gross pay	Earnings before any deductions
Pre-tax deductions	Retirement, insurance — reduce taxable income
Federal income tax	Based on filing status and W-4
FICA	Social Security (6.2%) + Medicare (1.45%)
State/local tax	Varies by location
Post-tax deductions	Roth contributions, garnishments
Net pay	What you actually receive

Common Paycheck Calculation Mistakes

Using marginal tax rate as effective rate — your highest bracket is not the rate on every dollar. Most people pay less than their marginal bracket suggests.

Forgetting FICA — many online estimates focus on income tax and miss Social Security and Medicare, which add another 7.65%.

Not accounting for pre-tax deductions — 401(k) contributions reduce your taxable income, so your tax bill is lower than gross pay alone suggests.

Comparing biweekly to semimonthly incorrectly — biweekly (26 checks/year) and semimonthly (24 checks/year) give different amounts per check for the same annual salary.

The Bottom Line

To calculate your paycheck, start with gross pay (hourly rate × hours, or annual salary ÷ pay periods), subtract pre-tax deductions, apply federal and state income tax plus FICA, then subtract any post-tax deductions. The result is your net take-home pay.

Use our Paycheck Calculator for a faster and more accurate estimate that accounts for your specific location, filing status, and deduction choices.

How to Calculate: Step-by-Step Guide

1

Calculate gross pay

Use hourly wage times hours worked, or divide annual salary by pay periods.

2

Subtract taxes

Estimate federal, state, local, Social Security, and Medicare withholding where applicable.

3

Subtract deductions

Account for benefits, retirement contributions, insurance, and other payroll deductions.