What is the difference between gross pay and net pay?

Gross pay is your salary or wages before any deductions. Net pay (take-home pay) is what you actually receive after federal taxes, state taxes, Social Security (6.2%), Medicare (1.45%), and any voluntary deductions are subtracted.

How do pre-tax deductions help?

Pre-tax deductions (like 401k contributions and health insurance premiums) reduce your taxable income, which lowers the amount of tax you owe. A $200 monthly 401k contribution does not reduce take-home pay by $200 — it reduces it by $200 minus the tax you would have paid on that $200.

Is this calculator free to use?

Yes, completely free with no signup required. The calculation runs in your browser and no data is sent to any server.

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How to Calculate Paycheck Net Pay Free — Take-Home Pay (2026)

By Rui Barreira · Last updated: 18 June 2026

Calculate your take-home pay after taxes and deductions with the brevio Paycheck Calculator — free, no signup, runs entirely in your browser. Enter your gross pay, tax rates, and deductions to see exactly what lands in your bank account.

Understanding the difference between gross pay and net pay is essential for budgeting, comparing job offers, and negotiating salary. The calculation involves your federal tax rate, state tax rate, and any voluntary deductions like retirement contributions or health insurance premiums.

How to Use the Tool

Enter your pay amount. This is your gross pay before any deductions.
Select your pay period. Choose from hourly, weekly, bi-weekly, semi-monthly, monthly, or annual. If you selected hourly, also enter your hours per week.
Enter your tax rates. Input your federal and state marginal tax rates as percentages.
Add other deductions. Enter any pre-tax or post-tax deductions in dollars (health insurance, 401k, etc.).
Click Calculate to see your gross pay, total deductions, and take-home pay.

How Net Pay Is Calculated

Net pay (take-home pay) is calculated as: Net Pay = Gross Pay − Federal Tax − State Tax − Other Deductions.

The federal income tax in the US is progressive — your marginal rate only applies to income in that bracket, not all your income. The tool uses a flat rate for simplicity; for a precise calculation, use a marginal bracket table. Common marginal rates for 2024 are 12%, 22%, and 24% for most full-time employees.

State income tax rates vary widely: nine US states have no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), while California tops out at 13.3%. Most states fall between 3% and 6% for typical incomes.

The effective tax rate — shown in the results — is the total taxes divided by gross pay. This is lower than your marginal rate because brackets are applied incrementally.

Frequently Asked Questions

What is the difference between gross pay and net pay?: Gross pay is your salary or wages before any deductions. Net pay (take-home pay) is what you actually receive after federal taxes, state taxes, Social Security (6.2%), Medicare (1.45%), and any voluntary deductions are subtracted.
Why does this calculator not include FICA taxes?: The tool uses your entered federal and state rates for simplicity. For a full paycheck calculation, add Social Security (6.2% up to the annual wage base) and Medicare (1.45%) to your federal rate, or enter them as a combined percentage.
How do pre-tax deductions help?: Pre-tax deductions (like 401k contributions and health insurance premiums) reduce your taxable income, which lowers the amount of tax you owe. A $200 monthly 401k contribution does not reduce take-home pay by $200 — it reduces it by $200 minus the tax you would have paid on that $200.

Frequently Asked Questions

What is the difference between gross pay and net pay?: Gross pay is your salary or wages before any deductions. Net pay (take-home pay) is what you actually receive after federal taxes, state taxes, Social Security (6.2%), Medicare (1.45%), and any voluntary deductions are subtracted.
How do pre-tax deductions help?: Pre-tax deductions (like 401k contributions and health insurance premiums) reduce your taxable income, which lowers the amount of tax you owe. A $200 monthly 401k contribution does not reduce take-home pay by $200 — it reduces it by $200 minus the tax you would have paid on that $200.
Is this calculator free to use?: Yes, completely free with no signup required. The calculation runs in your browser and no data is sent to any server.