Net Pay Calculator

Net pay, commonly called take-home pay, is what remains after all required and voluntary deductions are subtracted from your gross pay. Understanding this calculation helps you budget accurately and evaluate job offers in real terms.

The formula: Net Pay = Gross Pay − Federal Tax − State Tax − FICA − Other Deductions

Breaking down each deduction:

Federal income tax is calculated using marginal tax brackets. For 2026 (single filer):

• 10% on income up to $12,400
• 12% on $12,401–$50,400
• 22% on $50,401–$105,700
• 24% on $105,701–$201,775 (and higher brackets above)

FICA taxes (flat rates):

• Social Security: 6.2% of gross pay, up to the annual wage base of $184,500 in 2026
• Medicare: 1.45% of all gross pay (no cap)
• Total FICA: 7.65%

Worked example (single, no state tax, biweekly pay): Annual salary: $65,000 → Biweekly gross = $65,000 / 26 = $2,500

• Federal tax (estimated): ~$310
• Social Security: $2,500 × 6.2% = $155
• Medicare: $2,500 × 1.45% = $36.25
• Health insurance premium: $120
• 401(k) contribution (5%): $125
• Net Pay = $2,500 − $310 − $155 − $36.25 − $120 − $125 = ~$1,754

To run that through the calculator, combine the three taxes into one rate: ($310 + $155 + $36.25) ÷ $2,500 = 20.05%, with the health insurance and 401(k) going in as $245 of other deductions. It returns $1,753.75.

The mistake almost everyone makes with biweekly pay

There are 26 biweekly pay periods in a year, not 24. Two of those months you get three paychecks instead of two.

So $1,754 every two weeks is $45,598 a year, which is $3,800 a month, not the $3,508 you get by doubling a fortnightly figure. Budgeting from the doubled number quietly understates your income by about $3,500 a year, and people then treat the two three-paycheck months as a windfall rather than as the money they were already owed. Semi-monthly pay (24 periods, the 15th and the last day) really does double, which is why the two get confused.

Gross monthly on that $65,000 salary would be $5,416. Net is $3,800. State income tax, which ranges from nothing to 13.3%, comes out of that as well. Budget from net, never from gross.