Payroll Calculator

Calculate your net pay after taxes and deductions.

Pay Information

Tax Information

Pre-tax Deductions

Paycheck Results

Gross Pay

$1,000

Total Deductions

$165

Net Pay

$835

How it works

A payroll calculator turns gross pay into net pay by subtracting taxes and deductions. It applies pre-tax deductions first, then withholds federal income tax, FICA, and state tax, then any post-tax deductions — the same sequence an employer's payroll runs.

Gross to net

Net = Gross − pre-tax deductions − income taxes − FICA − post-tax deductions
FICA
7.65% payroll tax (employee share)
pre-tax
401k, health premiums — reduce taxable wages

Worked example

  • Gross = $4,000/month
  • FICA 7.65%, ~12% combined income tax
  1. FICA = $306
  2. Income tax ≈ $480

Net ≈ $3,214 before other deductions.

Good to know

  • Employers also pay a matching 7.65% FICA on top of wages — a cost beyond your gross pay.
  • Pre-tax benefits lower both income tax and (for some) FICA.
  • State and local taxes vary widely; a few states have no income tax at all.

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Frequently Asked Questions

What taxes are withheld from a paycheck?

Employees pay federal income tax withholding, Social Security tax of 6.2% (up to the annual wage base), Medicare tax of 1.45% (plus 0.9% extra on high earners), and state or local income taxes where they apply.

What is the difference between gross pay and net pay?

Gross pay is total earnings before anything is taken out; net pay is what actually hits your bank account after taxes, retirement contributions, insurance premiums, and other deductions.

How do pre-tax deductions affect payroll?

Pre-tax 401(k) contributions (up to $24,500 in 2026) reduce income tax withholding but not Social Security and Medicare taxes. Section 125 benefits like health premiums and HSA contributions through payroll typically reduce both.

How is overtime handled in payroll?

Under federal law (FLSA), non-exempt employees earn at least 1.5x their regular rate for hours over 40 in a workweek. Some states add stricter rules — California requires daily overtime after 8 hours, for example.

What payroll taxes does the employer pay?

Employers match the employee's 6.2% Social Security and 1.45% Medicare taxes, and also pay federal (FUTA) and state (SUTA) unemployment taxes. These come from the employer, not the employee's paycheck.