Free Paycheck Calculator: Hourly & Salary Take Home After Taxes (2023)

Federal Paycheck Calculator

Free Paycheck Calculator: Hourly & Salary Take Home After Taxes (1)

Federal Paycheck Quick Facts

  • Federal income tax rates range from 10% up to a top marginal rate of 37%.
  • The U.S. real median household income (adjusted for inflation) in 2021 was $70,784.
  • 9 U.S. states don't impose their own income tax for tax year 2022.

How Your Paycheck Works: Income Tax Withholding

When you start a new job or get a raise, you’ll agree to either an hourly wage or an annual salary. But calculating your weekly take-home pay isn’t a simple matter of multiplying your hourly wage by the number of hours you’ll work each week, or dividing your annual salary by 52. That’s because your employer withholds taxes from each paycheck, lowering your overall pay. Because of the numerous taxes withheld and the differing rates, it can be tough to figure out how much you’ll take home. That’s where our paycheck calculator comes in.

Tax withholding is the money that comes out of your paycheck in order to pay taxes, with the biggest one being income taxes. The federal government collects your income tax payments gradually throughout the year by taking directly from each of your paychecks. It's your employer's responsibility to withhold this money based on the information you provide in your Form W-4. You have to fill out this form and submit it to your employer whenever you start a new job, but you may also need to re-submit it after a major life change, like a marriage.

If you do make any changes, your employer has to update your paychecks to reflect those changes. Most people working for a U.S. employer have federal income taxes withheld from their paychecks, but some people are exempt. To be exempt, you must meet both of the following criteria:

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  1. In the previous tax year, you received a refund of all federal income tax withheld from your paycheck because you had zero tax liability.
  2. This year, you expect to receive a refund of all federal income tax withheld because you expect to have zero tax liability again. If you think you qualify for this exemption, you can indicate this on your W-4 Form.

Federal Top Income Tax Rate

YearRate
202237.00%
202137.00%
202037.00%
201937.00%
201837.00%
201739.60%
201639.60%
201539.60%
201439.60%
201339.60%
201235.00%

When it comes to tax withholdings, employees face a trade-off between bigger paychecks and a smaller tax bill. It's important to note that while past versions of the W-4 allowed you to claim allowances, the current version doesn't. Additionally, it removes the option to claim personal and/or dependency exemptions. Instead, filers are required to enter annual dollar amounts for things such as total annual taxable wages, non-wage income and itemized and other deductions. The new version also includes a five-step process for indicating additional income, entering dollar amounts, claiming dependents and entering personal information.

One way to manage your tax bill is by adjusting your withholdings. The downside to maximizing each paycheck is that you might end up with a bigger tax bill if, come April, you haven't had enough withheld to cover your tax liability for the year. That would mean that instead of getting a tax refund, you would owe money.

If the idea of a big one-off bill from the IRS scares you, then you can err on the side of caution and adjust your withholding. Each of your paychecks may be smaller, but you’re more likely to get a tax refund and less likely to have tax liability when you fill out your tax return.

Of course, if you opt for more withholding and a bigger refund, you're effectively giving the government a loan of the extra money that’s withheld from each paycheck. If you opt for less withholding you could use the extra money from your paychecks throughout the year and actually make money on it, such as through investing or putting it in a high-interest savings account. You could also use that extra money to make extra payments on loans or other debt.

(Video) Free payroll tax, paycheck calculator

When you fill out your W-4, there are worksheets that will walk you through withholdings based on your marital status, the number of children you have, the number of jobs you have, your filing status, whether someone else claims you as your dependent, whether you plan to itemize your tax deductions and whether you plan to claim certain tax credits. You can also fine-tune your tax withholding by requesting a certain dollar amount of additional withholding from each paycheck on your W-4.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

How Your Paycheck Works: FICA Withholding

In addition to income tax withholding, the other main federal component of your paycheck withholding is for FICA taxes. FICA stands for the Federal Insurance Contributions Act. Your FICA taxes are your contribution to the Social Security and Medicare programs that you’ll have access to when you’re a senior. It’s your way of paying into the system.

FICA contributions are shared between the employee and the employer. 6.2% of each of your paychecks is withheld for Social Security taxes and your employer contributes a further 6.2%. However, the 6.2% that you pay only applies to income up to the Social Security tax cap, which for 2022 is $147,000 ($160,200 for 2023). So any income you earn above that cap doesn’t have Social Security taxes withheld from it. It will still have Medicare taxes withheld, though.

There is no income limit on Medicare taxes. 1.45% of each of your paychecks is withheld for Medicare taxes and your employer contributes another 1.45%. If you make more than a certain amount, you'll be on the hook for an extra 0.9% in Medicare taxes. Here's a breakdown of these amounts for tax years 2022 and 2023:

  • $200,000 for single filers, heads of household and qualifying widow(er)s with dependent children
  • $250,000 for married taxpayers filing jointly
  • $125,000 for married taxpayers filing separately

2022 - 2023 Income Tax Brackets

  • Single Filers
  • Married, Filing Jointly
  • Married, Filing Separately
  • Head of Household
Single Filers
Taxable IncomeRate
$0 - $10,27510%
$10,276 - $41,77512%
$41,776 - $89,07522%
$89,076 - $170,05024%
$170,051 - $215,95032%
$215,951 - $539,90035%
$539,901+37%
(Video) How to estimate your personal income taxes
Married, Filing Jointly
Taxable IncomeRate
$0 - $20,55010%
$20,551 - $83,55012%
$83,551 - $178,15022%
$178,151 - $340,10024%
$340,101 - $431,90032%
$431,901 - $647,85035%
$647,851+37%
Married, Filing Separately
Taxable IncomeRate
$0 - $10,27510%
$10,276 - $41,77512%
$41,776 - $89,07522%
$89,076 - $170,05024%
$170,051 - $215,95032%
$215,951 - $323,92535%
$323,926+37%
Head of Household
Taxable IncomeRate
$0 - $14,65010%
$14,651 - $55,90012%
$55,901 - $89,05022%
$89,051 - $170,05024%
$170,051 - $215,95032%
$215,951 - $539,90035%
$539,901+37%
(Video) Program 1: Paycheck Calculator

If you work for yourself, you need to pay the self-employment tax, which is equal to both the employee and employer portions of the FICA taxes (15.3% total). Luckily, when you file your taxes, there is a deduction that allows you to deduct the half of the FICA taxes that your employer would typically pay. The result is that the FICA taxes you pay are still only 6.2% for Social Security and 1.45% for Medicare.

How Your Paycheck Works: Deductions

Federal income tax and FICA tax withholding are mandatory, so there’s no way around them unless your earnings are very low. However, they’re not the only factors that count when calculating your paycheck. There are also deductions to consider.

For example, if you pay any amount toward your employer-sponsored health insurance coverage, that amount is deducted from your paycheck. When you enroll in your company’s health plan, you can see the amount that is deducted from each paycheck. If you elect to contribute to a Health Savings Account (HSA) or Flexible Spending Account (FSA) to help with medical expenses, those contributions are deducted from your paychecks too.

Also deducted from your paychecks are any pre-tax retirement contributions you make. These are contributions that you make before any taxes are withheld from your paycheck. The most common pre-tax contributions are for retirement accounts such as a 401(k) or 403(b). So if you elect to save 10% of your income in your company’s 401(k) plan, 10% of your pay will come out of each paycheck. If you increase your contributions, your paychecks will get smaller. However, making pre-tax contributions will also decrease the amount of your pay that is subject to income tax. The money also grows tax-free so that you only pay income tax when you withdraw it, at which point it has (hopefully) grown substantially.

Some deductions from your paycheck are made post-tax. These include Roth 401(k) contributions. The money for these accounts comes out of your wages after income tax has already been applied. The reason to use one of these accounts instead of an account taking pre-tax money is that the money in a Roth IRA or Roth 401(k) grows tax-free and you don’t have to pay income taxes when you withdraw it (since you already paid taxes on the money when it went in). If you are early in your career or expect your income level to be higher in the future, this kind of account could save you on taxes in the long run.

How Your Paycheck Works: Pay Frequency

Some people get monthly paychecks (12 per year), while some are paid twice a month on set dates (24 paychecks per year) and others are paid bi-weekly (26 paychecks per year). The frequency of your paychecks will affect their size. The more paychecks you get each year, the smaller each paycheck is, assuming the same salary.

How Your Paycheck Works: Local Factors

If you live in a state or city with income taxes, those taxes will also affect your take-home pay. Just like with your federal income taxes, your employer will withhold part of each of your paychecks to cover state and local taxes.

(Video) Calculate Your Income With the Best Salary Calculator

FAQs

How do I calculate my take home pay from my gross pay? ›

Figure out the take-home pay by subtracting all the calculated deductions from the gross pay, or using this formula: Net pay = Gross pay - Deductions (FICA tax; federal, state and local taxes; and health insurance premiums).

How do I calculate how much taxes to take out of my paycheck? ›

Calculate the sum of all assessed taxes, including Social Security, Medicare and federal and state withholding information found on a W-4. Divide this number by the gross pay to determine the percentage of taxes taken out of a paycheck.

What is my take home pay if I make $30000? ›

If you make $30,000 a year living in the region of California, USA, you will be taxed $4,985. That means that your net pay will be $25,015 per year, or $2,085 per month. Your average tax rate is 16.6% and your marginal tax rate is 25.2%.

What is take home pay for $16 hour? ›

$16 Per Hour is…
$16 per Hour – Full TimeTotal Income
Weekly Wage (40 Hours)$640
Bi-Weekly Wage (80 Hours)$1,280
Daily Wage (8 Hours)$128
Net Estimated Monthly Income$2,117
3 more rows
Dec 6, 2022

What is the percentage of federal taxes taken out of a paycheck? ›

Employers should withhold half (7.65%) of the 15.3% owed in FICA (Social Security and Medicare) taxes from an employee's gross pay. FICA taxes come in addition to regular federal income taxes, which change depending on your income level. There are seven tax brackets in 2022 and 2023: 12%. 22%, 24%, 32%, 35%, and 37%.

How do you break down salary to hourly? ›

Converting a Salary to an Hourly Wage
  1. Simply use the annual salary and divide into it the scheduled hours per year.
  2. Example: John earns $50,000/year. ...
  3. Example: If Mary makes $1,000 per week, and is scheduled to work 40 hours per week, divide 40 hours into $1,000 to get her hourly rate.
Apr 1, 2021

What is the formula to calculate gross pay? ›

Gross Salary is, therefore: Basic Salary + HRA + Other Allowances.

How do you calculate biweekly pay? ›

How to calculate biweekly pay
  1. Figure out your gross annual salary.
  2. Divide that number by 26.
  3. That number is the amount you'll receive biweekly.
  4. If you want to know your hourly pay, take your biweekly paycheck and divide by the number of hours worked every two weeks.
Feb 8, 2019

How much federal tax should be taken out of a $500 paycheck? ›

If the gross pay is $500, Social Security and Medicare combined come to $38.25. The employee's federal income tax is $47.50. After these amounts are subtracted, the take-home pay comes to $414.25. If you are in a state that levies a state income tax, follow state rules to calculate and deduct the state income tax.

How much tax is taken out of a $2000 paycheck? ›

If you make $2,000 a year living in the region of California, USA, you will be taxed $175. That means that your net pay will be $1,825 per year, or $152 per month.

How much tax is deducted from a 1000 paycheck? ›

For example, an employee with a gross pay of $1,000 would owe $62 in Social Security tax and $14.50 in Medicare tax.

What is my take home pay if I make 40000? ›

If you make $40,000 a year living in the region of California, USA, you will be taxed $7,507. That means that your net pay will be $32,493 per year, or $2,708 per month.

How much is 40k a year hourly? ›

So if an employee earns $40,000 annually working 40 hours a week, they make about $19.23 an hour (40,000 divided by 2,080).

How much is 60k a year hourly? ›

Based on that figure, the hourly wage for a job that pays $60,000 per year is $28.75 per hour. Here's exactly how that $60,000 per year breaks down: $28.75 per hour. $230 per day (assuming an eight-hour work day)

How much is $16 an hour every two weeks? ›

$16 hourly is how much per two weeks? If you make $16 per hour, your Biweekly salary would be $1,280. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

How much is $16.50 an hour annually? ›

$16.50 an hour is $33,000 a year in annual income.

The calculation assumes 50 work weeks with an average of two weeks of holidays in a year.

What is $16 * 40 hours a week? ›

So to calculate your weekly income, see below: $16 an hour multiplied by 40 hours per week is $640 per week income.

How much taxes will be taken out of a 300 dollar check? ›

Pretty much it is, claiming Single and Zero allowances you will pat a little under 10%, Social Security is 6.2%and Medicare is 1.45%. So right off the bat you lose 16.85% or $84.25 in federal. State taxes can run between 0.00% and 7.0%.

How much is $20 an hour annually? ›

$20 hourly is how much per year? If you make $20 per hour, your Yearly salary would be $41,600. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

How much is 70k a year hourly? ›

A salary of $70,000 equates to a monthly pay of $5,833, weekly pay of $1,346, and an hourly wage of $33.65.

How do you calculate take home? ›

Take Home Salary = Gross Salary - Income Tax - Employee's PF Contribution(PF) - Prof. Tax. Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity. Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service.

How do I calculate my gross pay stub? ›

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

How do you calculate biweekly pay hourly? ›

Divide the biweekly pay by the number of regular hours worked to calculate the regular hourly rate. For example, if your biweekly gross pay is $1,600 and you work a regular 40-hour workweek, your hourly rate is $20 [$1,600 / (40 x 2) = $1,600/80 = $20].

How much should you save if you get paid biweekly? ›

One rule of thumb is to save 20% of your pay. Aim to be realistic and find a savings ratio that works well for you. Some savings goals you could consider working toward are investing for retirement, building an emergency fund and saving for a down payment on a house.

Is biweekly 2x a week? ›

Biweekly and bimonthly can mean the same thing because of the prefix bi-, which here can mean “occurring every two” or “occurring twice in.” Therefore, biweekly can be “twice in a week” or “every other week.” Bimonthly can also mean "every other week" if it's twice in a month, or it can mean “every other month.”

Is it better to claim 1 or 0? ›

By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.

Should I claim 1 or 0? ›

Claiming 1 reduces the amount of taxes that are withheld from weekly paychecks, so you get more money now with a smaller refund. Claiming 0 allowances may be a better option if you'd rather receive a larger lump sum of money in the form of your tax refund.

How much taxes come out of a 1200 paycheck? ›

Pretty much it is, claiming Single and Zero allowances you will pat a little under 10%, Social Security is 6.2%and Medicare is 1.45%. So right off the bat you lose 16.85% or $84.25 in federal. State taxes can run between 0.00% and 7.0%.

What is my take home pay if I make 50000? ›

If you make $50,000 a year living in the region of California, USA, you will be taxed $10,242. That means that your net pay will be $39,758 per year, or $3,313 per month.

What is my net pay if my gross is 60000? ›

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.

What is my take home pay if I make 45000? ›

If you make $45,000 a year living in the region of California, USA, you will be taxed $8,874. That means that your net pay will be $36,126 per year, or $3,010 per month.

What is $22 an hour annually? ›

$22 hourly is how much per year? If you make $22 per hour, your Yearly salary would be $45,760. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

What is $50000 a year hourly? ›

An average person works about 40 hours per week, which means if they make $50,000 a year, they earn $24.04 per hour.

How much is 80k a year hourly? ›

$80,000 is $38.46 an hour without vacation time.

If you work a full 40-hour week for 52 weeks, that amounts to 2,080 hours of work.

What's $35 an hour annually? ›

If you make $35 per hour, your Yearly salary would be $72,800. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

How much is 75k a year hourly? ›

$75,000 is $37.50 an hour.

$37.50 is the hourly wage a person who earns a $75,000 salary will make if they work 2,000 hours in a year for an average of 40 hours per week, with two weeks of total holidays. We take the annual salary of $75,000 and divide it by 2,000 to get to a $37.50 hourly rate.

How much every 2 weeks is 60k a year? ›

When looking at how much $60,000 a year is biweekly in your paycheck, you simply need to calculate how much you would earn over every two weeks. If you assume a full-time position with no overtime and exactly 40 hours per week, then you would earn $60,000 / 26 bi-weekly pay periods = $2,307.69 per biweekly paycheck.

What is take home pay on $60000? ›

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.

How much tax comes out of a $500 paycheck? ›

Calculate Take-Home Pay

If the gross pay is $500, Social Security and Medicare combined come to $38.25. The employee's federal income tax is $47.50. After these amounts are subtracted, the take-home pay comes to $414.25.

How much taxes do they take out of $1000? ›

For example, an employee with a gross pay of $1,000 would owe $62 in Social Security tax and $14.50 in Medicare tax.

How much is $2800 a month hourly? ›

If you make $2,800 per month, your hourly salary would be $16.15. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

What is my take home pay if I make 70000? ›

If you make $70,000 a year living in the region of California, USA, you will be taxed $17,665. That means that your net pay will be $52,335 per year, or $4,361 per month. Your average tax rate is 25.2% and your marginal tax rate is 41.0%.

How much is $70000 a year per hour? ›

A salary of $70,000 equates to a monthly pay of $5,833, weekly pay of $1,346, and an hourly wage of $33.65.

How much is a $2000 check after taxes? ›

If you make $2,000 a year living in the region of California, USA, you will be taxed $175. That means that your net pay will be $1,825 per year, or $152 per month.

What would taxes be on $4000? ›

If you make $4,000 a year living in the region of California, USA, you will be taxed $350. That means that your net pay will be $3,650 per year, or $304 per month. Your average tax rate is 8.8% and your marginal tax rate is 8.8%.

How much federal tax do I pay on $36000? ›

If you make $36,000 a year living in the region of California, USA, you will be taxed $6,496. That means that your net pay will be $29,504 per year, or $2,459 per month. Your average tax rate is 18.0% and your marginal tax rate is 25.3%.

What is $17.50 an hour annually? ›

$17.50 an hour is $35,000 a year in annual income.

If you earn an hourly wage of $17.50 an hour and work for an average of 40 hours a week for 50 weeks a year, you'll earn a yearly salary of $35,000.

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