Paycheck Calculator
Where does your paycheck actually go? See exactly how much federal tax, Social Security, and Medicare eat from each paycheck — and how pre-tax deductions like your 401(k) save you real money.
8,000+
Paychecks Calculated
Take-home demystified
22-30%
Typical Deduction Rate
From gross to net
10+
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Texas CPA
IRS-sourced data
Paycheck Calculator
See your actual take-home pay
Estimated Take-Home Per Paycheck
$2,087.62
26x per year = $54,278/year
Disclaimer: This calculator provides estimates for educational purposes only. Federal withholding uses the simplified IRS Pub 15-T percentage method. State and local taxes are not included. Consult with a qualified CPA for personalized tax advice.
Understanding Your Paycheck Deductions
Most employees are surprised to see 22-30% of their gross pay disappear before it hits their bank account. The biggest culprits are federal income tax withholding and FICA (Social Security + Medicare). Understanding these deductions helps you make smarter decisions about your W-4 and pre-tax benefits.
Federal Withholding: The Biggest Bite
Your employer uses IRS Publication 15-T to estimate how much federal tax to withhold from each paycheck. The amount depends on your salary, filing status, and any adjustments on your W-4. If you owe a big refund or balance every April, your withholding may need adjustment — talk to your CPA.
FICA: Social Security + Medicare
Every W-2 employee pays 6.2% for Social Security (on wages up to $176,100 in 2025) and 1.45% for Medicare (no cap). Your employer matches these amounts — that's the "hidden half" that adds 7.65% to your true cost of employment. High earners above $200,000 ($250,000 MFJ) also pay an additional 0.9% Medicare tax.
Pre-Tax Deductions: Your Secret Weapon
401(k) contributions, HSA contributions, and health insurance premiums come out before federal tax is calculated. A $500/month 401(k) contribution at a 22% bracket saves you $110/month in federal taxes — that's $1,320/year in tax savings while building your retirement nest egg. It's the rare tax move that benefits you twice.
Frequently Asked Questions
Why is my take-home pay so much less than my salary?
Your paycheck is reduced by federal income tax withholding, Social Security tax (6.2%), Medicare tax (1.45%), and any pre-tax deductions (401k, HSA, health insurance). For a $65,000 salary, these deductions typically reduce your take-home to about 70-78% of gross pay.
What is the "employer half" of payroll taxes?
Your employer pays an additional 6.2% Social Security tax and 1.45% Medicare tax on your behalf — matching your employee contributions. This means the true cost of employment is 7.65% more than your salary. This hidden cost is why self-employed individuals pay 15.3% in SE tax.
How does pay frequency affect my paycheck?
Your annual salary divided by pay periods determines gross per paycheck. Bi-weekly (26 paychecks) gives slightly different amounts than semi-monthly (24 paychecks) because of the different divisor. Weekly paychecks are smaller but more frequent; monthly are larger but less frequent.
How do pre-tax deductions save me money?
401(k) contributions, HSA contributions, and health insurance premiums reduce your taxable income before federal taxes are calculated. For example, a $6,000 annual 401(k) contribution at a 22% tax bracket saves you $1,320 in federal taxes — the money grows tax-deferred too.
What is the Additional Medicare Tax?
If your wages exceed $200,000 ($250,000 married filing jointly), you pay an extra 0.9% Medicare tax on the amount above the threshold. Unlike regular Medicare, your employer does NOT match this additional tax.
Getting less than you expected?
This calculator shows your current paycheck picture. A CPA can help optimize your W-4, maximize pre-tax deductions, and identify tax credits you might be missing.
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