From gross to take-home
Your gross salary is never what you take home. First, the IRS takes federal income tax, calculated on a progressive scale after subtracting the standard deduction. Then come FICA taxes: 6.2% for Social Security (up to the wage base) and 1.45% for Medicare on all wages. Most workers also pay state income tax, which varies a lot by state.
Contributing to a 401(k) lowers your taxable income, so pre-tax savings actually reduce the tax bite while building your retirement. That's why the calculator lets you add it.
Quick example
On an $85,000 salary, a single filer pays roughly federal tax plus 7.65% FICA, landing in the mid-$60,000s take-home before state tax — an effective rate well below the top bracket.
What gets taken out
- Federal income tax. Progressive, 10% to 37%, on income after the standard deduction.
- Social Security — 6.2%. Only on wages up to $184,500 (2026).
- Medicare — 1.45%. On all wages, plus 0.9% extra above $200,000.
- State tax. Varies; nine states have none.
Common questions
Your gross salary minus federal income tax, Social Security (6.2%), Medicare (1.45%), any state tax and pre-tax deductions like a 401(k). The result is what actually lands in your account.
This is an estimate using 2026 federal brackets and the standard deduction. Real withholding depends on your W-4 allowances, local taxes, health premiums and other deductions specific to your employer.
It uses a single flat state-tax percentage as an approximation. Nine states have no income tax; others use their own brackets. Enter your effective state rate for a closer figure.
For 2026, Social Security tax (6.2%) only applies to the first $184,500 of wages. Medicare (1.45%) applies to all wages, with an extra 0.9% above $200,000.