Where your salary actually goes
A salary number is never what lands in your account. Before tax is even applied, pre-tax deductions come off the top — retirement contributions and benefits like health insurance. Tax is then charged on what remains, not your full salary. This calculator walks through that order so the final "take-home" figure reflects reality, not just gross pay minus a single tax percentage.
Using this for a raise or job offer
Because it is quick to adjust, this is a good tool for comparing scenarios — a raise, a new job's salary, or increasing your retirement contribution. If you're negotiating hourly versus salaried pay, pair this with the Salary to Hourly Calculator to compare on equal terms.
Frequently asked questions
How is take-home pay calculated here?
Start with your gross salary, subtract pre-tax deductions (retirement contributions and things like health insurance premiums), then apply your estimated effective tax rate to what remains. What is left is your take-home pay — the cash that actually lands in your account.
What is an "effective tax rate" and how do I estimate mine?
It is the average rate you pay across all your income — combined federal, state and payroll taxes — which is lower than your top tax bracket. Check a recent pay stub (total tax withheld ÷ gross pay) for your real number, or use 20–30% as a rough US estimate depending on income and state.
Why does my retirement contribution reduce take-home pay if I still own that money?
A 401(k) or similar contribution is real money — it is just not cash in your pocket. It moves from your paycheck straight into your retirement account, so it lowers take-home pay even though your net worth is unaffected.
Is this exact enough for budgeting?
It is a solid planning estimate, not a payroll-exact figure — real paychecks also factor in exact tax brackets, filing status, local taxes and benefit elections. Use your actual pay stub for precise budgeting, and this tool for what-if scenarios like a raise or a new job offer.
Last updated: June 2026