Why your paycheck is smaller than your pay.
Enter your gross pay and a few basics to see an estimated take-home amount, with each tax line broken out and explained in plain language. This is an estimate for learning, not tax filing.
Pay before any taxes are taken out, for one paycheck.
A flat rate stand-in. Most states use brackets and deductions this does not model.
$1,947.56
From $2,500.00 gross. That is about $50,637 a year after an estimated 22% in taxes.
Tax on your income after the 2024 standard deduction of $14,600. Simplified 2024 brackets are used; your real withholding depends on your W-4 and more.
6.2% of pay, up to a yearly wage cap ($168,600 for 2024). It funds Social Security retirement and disability benefits.
1.45% of all pay, with no wage cap. It funds Medicare health coverage. (A small extra Medicare tax can apply to high earners and is not included here.)
A simplified flat 5% stand-in. Real state taxes vary widely and many use brackets and deductions.
This is an estimate for learning, not tax filing or a guarantee of your real paycheck. See the assumptions below.
Gross pay is what you earn before anything is taken out. Take-home pay (also called net pay) is what actually lands in your account after taxes.
The biggest pieces taken out are usually federal income tax and FICA. FICA is two payroll taxes together: Social Security (6.2% up to a yearly wage cap) and Medicare (1.45% of all pay). Many people also owe state income tax, which this tool models as a single simplified flat rate.
Your real paycheck also depends on things this tool does not include, like money you set aside before tax for retirement or health insurance, tax credits, and how you filled out your W-4. Treat the number here as a ballpark.
Simplified estimate for the 2024 tax year. Not tax filing.
- Federal income tax uses simplified 2024 IRS brackets and the 2024 standard deduction, applied to your annual gross. It does not model your W-4 allowances, other income, or credits.
- Social Security is 6.2% up to the 2024 wage base of $168,600; Medicare is 1.45% of all pay. The extra Medicare tax on high earners is not included.
- State income tax is a single flat-rate stand-in from a short labeled list, not any real state tax code. Most states use brackets, deductions, and sometimes local taxes this does not model.
- Pre-tax retirement and health deductions, tax credits, and local or city taxes are left out. Your real paycheck will differ.