US Paycheck Calculator

What is FICA and how much is withheld?

FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Employees pay 6.2% for Social Security (on the first $168,600 of wages in 2024) and 1.45% for Medicare (on all wages, plus 0.9% additional Medicare on wages over $200,000 for single filers). Your employer matches these amounts.

How does a 401(k) contribution reduce my paycheck?

Traditional 401(k) contributions are pre-tax — they reduce your federal (and usually state) taxable income. If you contribute 6% of an $80,000 salary ($4,800), you avoid paying federal, state, and Social Security tax on that $4,800. The actual paycheck reduction is less than $4,800 — typically $3,000–$3,500 — because you're saving taxes on it.

Which states have no income tax?

As of 2024: Alaska, Florida, Nevada, New Hampshire (only taxes investment income, phasing out), South Dakota, Tennessee (phased out), Texas, Washington, and Wyoming have no wage income tax. Texas and Nevada have no state income tax but have higher property taxes.

What is the difference between gross and net pay?

Gross pay is your full salary before any withholding. Net pay (take-home) is what hits your bank account after federal tax, FICA, state/local taxes, and pre-tax benefit deductions (401k, health insurance, FSA) are withheld. The gap between gross and net is typically 25–40% for most US workers.