Net Income Calculator

Quick gross-to-net income calculator showing all tax deductions. See monthly, biweekly, and hourly net.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Publication 15 (Circular E), Employer's Tax Guide

$

Net Annual Income

$61,592.50

Net Monthly

$5,132.71

Effective Tax Rate

17.9%

Income Breakdown

Gross Annual Income$75,000.00
Federal Income Tax- $7,670.00
Social Security (6.2%)- $4,650.00
Medicare (1.45%)- $1,087.50
Total Deductions & Tax- $13,407.50
Net Annual Income$61,592.50

Take-Home Pay

Annual$61,592.50
Monthly$5,132.71
Bi-Weekly$2,368.94
Weekly$1,184.47
Hourly (40 hr/wk)$29.61
Effective Total Tax Rate17.9%

Use the Net Income Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Take-home pay is the number that actually lands in your bank account, and it sits well below the salary printed on your offer letter. Calculating it precisely is the foundation of any honest budget, because it tells you the true disposable income you have to work with each pay period.

The calculation starts from Gross Pay and works downward, peeling off federal income tax, state income tax, and local taxes, then Social Security and Medicare under FICA, and finally any pre-tax benefits such as health insurance premiums or 401(k) contributions.

Most errors come from leaving deductions out, particularly pre-tax benefits or irregular items like union dues that are easy to overlook. Withholding is not fixed either; it shifts with your W-4 elections, so it is worth checking those periodically to confirm the result still matches reality.

Example: Calculating Net Pay for a Bi-Weekly Check of $2,000 Gross

  1. 1 Input your gross bi-weekly pay of $2,000. For deductions, let's assume: Federal Tax = $200, State Tax = $80, Social Security (6.2%) = $124, Medicare (1.45%) = $29, Health Insurance (pre-tax) = $100.
  2. 2 Gross Pay - Federal Tax - State Tax - Social Security - Medicare - Health Insurance = Net Income. So, $2,000 - $200 - $80 - $124 - $29 - $100 = $1,467.
  3. 3 Your estimated net income for this bi-weekly paycheck is $1,467.
  4. 4 This means that while your gross earnings are $2,000, you have $1,467 available to spend or save. Understanding this difference is vital for making informed financial decisions.

Source: IRS — Publication 15 (Circular E), Employer's Tax Guide · Last updated: April 2026

Frequently Asked Questions

How do I calculate net income from gross salary?
Start with gross salary, subtract federal income tax, state income tax, Social Security (6.2% up to $184,500), Medicare (1.45%), and any pre-tax deductions like health insurance and 401(k). The remainder is your net (take-home) income.
What percentage of my paycheck goes to taxes?
For a typical middle-income earner, about 25-35% of gross pay goes to all taxes and deductions. This includes roughly 12-22% federal income tax, 0-10% state income tax, and 7.65% FICA. Pre-tax deductions reduce the tax portion.
Why is my net income different from my AGI?
AGI is a tax concept that includes all income minus specific above-the-line deductions. Net income (take-home pay) is your actual paycheck after all taxes and deductions are withheld. AGI does not subtract FICA taxes, health insurance, or 401(k) contributions.