Free Paycheck Calculator: Hourly & Salary Take Home After Taxes (2024)

Federal Paycheck Calculator

Free Paycheck Calculator: Hourly & Salary Take Home After Taxes (1)

Federal Paycheck Quick Facts

  • Federal income tax rates range from 10% up to a top marginal rate of 37%.
  • The U.S. real median household income (adjusted for inflation) in 2022 was $74,580.
  • 9 U.S. states don't impose their own income tax for tax year 2023.

How Your Paycheck Works: Income Tax Withholding

When you start a new job or get a raise, you’ll agree to either an hourly wage or an annual salary. But calculating your weekly take-home pay isn’t a simple matter of multiplying your hourly wage by the number of hours you’ll work each week, or dividing your annual salary by 52. That’s because your employer withholds taxes from each paycheck, lowering your overall pay. Because of the numerous taxes withheld and the differing rates, it can be tough to figure out how much you’ll take home. That’s where our paycheck calculator comes in.

Tax withholding is the money that comes out of your paycheck in order to pay taxes, with the biggest one being income taxes. The federal government collects your income tax payments gradually throughout the year by taking directly from each of your paychecks. It's your employer's responsibility to withhold this money based on the information you provide in your Form W-4. You have to fill out this form and submit it to your employer whenever you start a new job, but you may also need to re-submit it after a major life change, like a marriage.

If you do make any changes, your employer has to update your paychecks to reflect those changes. Most people working for a U.S. employer have federal income taxes withheld from their paychecks, but some people are exempt. To be exempt, you must meet both of the following criteria:

  1. In the previous tax year, you received a refund of all federal income tax withheld from your paycheck because you had zero tax liability.
  2. This year, you expect to receive a refund of all federal income tax withheld because you expect to have zero tax liability again. If you think you qualify for this exemption, you can indicate this on your W-4 Form.

For reference, the top federal income tax rate is 37%, and the bottom rate is 10%. Here's a breakdown of the income tax brackets for 2023, which you will file in 2024:

2023 Income Tax Brackets (due April 2024)

  • Single Filers
  • Married, Filing Jointly
  • Married, Filing Separately
  • Head of Household
Single Filers
Taxable IncomeRate
$0 - $11,00010%
$11,000 - $44,72512%
$44,725 - $95,37522%
$95,375 - $182,10024%
$182,100 - $231,25032%
$231,250 - $578,12535%
$578,125+37%
Married, Filing Jointly
Taxable IncomeRate
$0 - $22,00010%
$22,000 - $89,45012%
$89,450 - $190,75022%
$190,750 - $364,20024%
$364,200 - $462,50032%
$462,500 - $693,75035%
$693,750+37%
Married, Filing Separately
Taxable IncomeRate
$0 - $11,00010%
$11,000 - $44,72512%
$44,725 - $95,37522%
$95,375 - $182,10024%
$182,100 - $231,25032%
$231,250 - $346,87535%
$346,875+37%
Head of Household
Taxable IncomeRate
$0 - $15,70010%
$15,700 - $59,85012%
$59,850 - $95,35022%
$95,350 - $182,10024%
$182,100 - $231,25032%
$231,250 - $578,10035%
$578,100+37%

And, here's a breakdown of income tax brackets for 2024, which you will file in 2025:

2024 Income Tax Brackets (due April 2025)

  • Single Filers
  • Married, Filing Jointly
  • Married, Filing Separately
  • Head of Household
Single Filers
Taxable IncomeRate
$0 to $11,60010%
$11,600 - $47,15012%
$47,150 - $100,52522%
$100,525 - $191,95024%
$191,950 - $243,72532%
$243,725 - $609,35035%
$609,350+37%
Married, Filing Jointly
Taxable IncomeRate
$0 - $23,22010%
$23,220 - $94,30012%
$94,300 - $201,05022%
$201,050 - $383,90024%
$383,900 - $487,45032%
$487,450 - $731,20035%
$731,200+37%
Married, Filing Separately
Taxable IncomeRate
$0 - $11,60010%
$11,600 - $47,15012%
$47,150 - $100,52522%
$100,525 - $191,95024%
$191,950 - $243,72532%
$243,725 - $365,60035%
$365,600+37%
Head of Household
Taxable IncomeRate
$0 - $16,55010%
$16,550 - $63,10012%
$63,100 - $100,50022%
$100,500 - $191,95024%
$191,950 - $243,70032%
$243,700 - $609,35035%
$609,350+37%

When it comes to tax withholdings, employees face a trade-off between bigger paychecks and a smaller tax bill. It's important to note that while past versions of the W-4 allowed you to claim allowances, the current version doesn't. Additionally, it removes the option to claim personal and/or dependency exemptions. Instead, filers are required to enter annual dollar amounts for things such as total annual taxable wages, non-wage income and itemized and other deductions. The new version also includes a five-step process for indicating additional income, entering dollar amounts, claiming dependents and entering personal information.

One way to manage your tax bill is by adjusting your withholdings. The downside to maximizing each paycheck is that you might end up with a bigger tax bill if, come April, you haven't had enough withheld to cover your tax liability for the year. That would mean that instead of getting a tax refund, you would owe money.

If the idea of a big one-off bill from the IRS scares you, then you can err on the side of caution and adjust your withholding. Each of your paychecks may be smaller, but you’re more likely to get a tax refund and less likely to have tax liability when you fill out your tax return.

Of course, if you opt for more withholding and a bigger refund, you're effectively giving the government a loan of the extra money that’s withheld from each paycheck. If you opt for less withholding you could use the extra money from your paychecks throughout the year and actually make money on it, such as through investing or putting it in a high-interest savings account. You could also use that extra money to make extra payments on loans or other debt.

When you fill out your W-4, there are worksheets that will walk you through withholdings based on your marital status, the number of children you have, the number of jobs you have, your filing status, whether someone else claims you as your dependent, whether you plan to itemize your tax deductions and whether you plan to claim certain tax credits. You can also fine-tune your tax withholding by requesting a certain dollar amount of additional withholding from each paycheck on your W-4.

A financial advisor can help you understand how taxes fit into a set of financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you canhave a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

How Your Paycheck Works: FICA Withholding

In addition to income tax withholding, the other main federal component of your paycheck withholding is for FICA taxes. FICA stands for the Federal Insurance Contributions Act. Your FICA taxes are your contribution to the Social Security and Medicare programs that you’ll have access to when you’re a senior. It’s your way of paying into the system.

FICA contributions are shared between the employee and the employer. 6.2% of each of your paychecks is withheld for Social Security taxes and your employer contributes a further 6.2%. However, the 6.2% that you pay only applies to income up to the Social Security tax cap, which for 2023 is $160,200 ($168,600 for 2024). So any income you earn above that cap doesn’t have Social Security taxes withheld from it. It will still have Medicare taxes withheld, though.

There is no income limit on Medicare taxes. 1.45% of each of your paychecks is withheld for Medicare taxes and your employer contributes another 1.45%. If you make more than a certain amount, you'll be on the hook for an extra 0.9% in Medicare taxes. Here's a breakdown of these amounts for the current tax year:

  • $200,000 for single filers, heads of household and qualifying widow(er)s with dependent children
  • $250,000 for married taxpayers filing jointly
  • $125,000 for married taxpayers filing separately

If you work for yourself, you need to pay the self-employment tax, which is equal to both the employee and employer portions of the FICA taxes (15.3% total). Luckily, when you file your taxes, there is a deduction that allows you to deduct the half of the FICA taxes that your employer would typically pay. The result is that the FICA taxes you pay are still only 6.2% for Social Security and 1.45% for Medicare.

How Your Paycheck Works: Deductions

Federal income tax and FICA tax withholding are mandatory, so there’s no way around them unless your earnings are very low. However, they’re not the only factors that count when calculating your paycheck. There are also deductions to consider.

For example, if you pay any amount toward your employer-sponsored health insurance coverage, that amount is deducted from your paycheck. When you enroll in your company’s health plan, you can see the amount that is deducted from each paycheck. If you elect to contribute to a Health Savings Account (HSA) or Flexible Spending Account (FSA) to help with medical expenses, those contributions are deducted from your paychecks too.

Also deducted from your paychecks are any pre-tax retirement contributions you make. These are contributions that you make before any taxes are withheld from your paycheck. The most common pre-tax contributions are for retirement accounts such as a 401(k) or 403(b). So if you elect to save 10% of your income in your company’s 401(k) plan, 10% of your pay will come out of each paycheck. If you increase your contributions, your paychecks will get smaller. However, making pre-tax contributions will also decrease the amount of your pay that is subject to income tax. The money also grows tax-free so that you only pay income tax when you withdraw it, at which point it has (hopefully) grown substantially.

Some deductions from your paycheck are made post-tax. These include Roth 401(k) contributions. The money for these accounts comes out of your wages after income tax has already been applied. The reason to use one of these accounts instead of an account taking pre-tax money is that the money in a Roth IRA or Roth 401(k) grows tax-free and you don’t have to pay income taxes when you withdraw it (since you already paid taxes on the money when it went in). If you are early in your career or expect your income level to be higher in the future, this kind of account could save you on taxes in the long run.

How Your Paycheck Works: Pay Frequency

Some people get monthly paychecks (12 per year), while some are paid twice a month on set dates (24 paychecks per year) and others are paid bi-weekly (26 paychecks per year). The frequency of your paychecks will affect their size. The more paychecks you get each year, the smaller each paycheck is, assuming the same salary.

How Your Paycheck Works: Local Factors

If you live in a state or city with income taxes, those taxes will also affect your take-home pay. Just like with your federal income taxes, your employer will withhold part of each of your paychecks to cover state and local taxes.

Free Paycheck Calculator: Hourly & Salary Take Home After Taxes (2024)

FAQs

How much tax is taken out of a $1000 dollar check? ›

Income Tax Brackets
Single Filers
California Taxable IncomeRate
$0 - $10,4121.00%
$10,412 - $24,6842.00%
$24,684 - $38,9594.00%
7 more rows

How much taxes are taken out of a $1200 paycheck? ›

The amount of taxes taken out of a $ 1200 paycheck depends on several factors such as filing status , number of exemptions , and state and federal tax rates . However , on average , approximately 22 % of a $ 1200 paycheck would be deducted for taxes , which amounts to $ 264 .

How much gets taken out of my paycheck in NY? ›

Overview of New York Taxes
Gross Paycheck$3,146
Federal Income11.75%$370
State Income4.67%$147
Local Income3.28%$103
FICA and State Insurance Taxes7.80%$246
23 more rows

What is the amount of money that you actually take home from your paycheck? ›

Your net pay is essentially your gross income minus the taxes and other deductions that are withheld from your earnings by your employer. Your net pay each pay period is the final amount on your paycheck. Your annual net pay is your salary minus the money that's withheld throughout the year.

How much taxes should be taken out of a $2000 check? ›

If you make $2,000 a year living in the region of California, USA, you will be taxed $175. That means that your net pay will be $1,825 per year, or $152 per month.

How much tax is taken out of $400 a week? ›

From weekly $400 gross pay assuming you filed married with zero allowances on W4): federal withholding - $425. social security - $25. Medicare - $6.

How much tax is taken out of a $1500 check? ›

If you make $1,500 a year living in the region of California, USA, you will be taxed $131. That means that your net pay will be $1,369 per year, or $114 per month. Your average tax rate is 8.8% and your marginal tax rate is 8.8%.

How much tax is taken out of a 600 dollar check? ›

However , as a general estimate , if you are a single filer with no dependents and no additional income , the federal income tax rate for your income bracket would be around 12 % , which would amount to $ 72 in taxes taken out of your $ 600 weekly paycheck .

How much an hour is $4000 a month after taxes? ›

$4,000 a month is how much an hour? If you make $4,000 a month, your hourly salary would be $23.08.

What percentage of paycheck goes to taxes? ›

Income tax: 1 percent to 12.3 percent

California has nine tax brackets, ranging from 1 percent to 12.3 percent. Those who make over $1 million also pay an additional 1 percent income tax.

How much is 30 dollars an hour annually after taxes? ›

As $30 an hour is $62,400 a year before tax, this would put you in the third tier at a 22% tax rate. With estimated deductions placing your taxable income at around $49,450, you would pay $6,496 in federal taxes. Your take-home pay after just federal taxes would be around $55,504.

How to calculate hourly rate from salary? ›

First, determine the total number of hours worked by multiplying the hours per week by the number of weeks in a year (52). Next, divide this number from the annual salary. For example, if an employee has a salary of $50,000 and works 40 hours per week, the hourly rate is $50,000/2,080 (40 x 52) = $24.04.

What is the formula for take-home pay? ›

Determine take-home pay by adding together taxable income, income taxes, and other deductions. Then, subtract the total from your gross amount. Need an easy way to calculate take-home pay for employees? Let Patriot's payroll software calculate taxes and deductions for you.

What percentage of your paycheck should you take-home? ›

This goes back to a popular budgeting rule that's referred to as the 50-30-20 strategy, which means you allocate 50% of your paycheck toward the things you need, 30% toward the things you want and 20% toward savings and investments.

What tax bracket am I in in 2024? ›

Tax brackets 2024 (taxes due April 2025)
Tax rateSingleMarried filing jointly
10%$0 to $11,600$0 to $23,200
12%$11,601 to $47,150$23,201 to $94,300
22%$47,151 to $100,525$94,301 to $201,050
24%$100,526 to $191,950$201,051 to $383,900
3 more rows
May 30, 2024

How much is taken out of a $1000 paycheck? ›

For example, an employee with a gross pay of $1,000 would owe $62 in Social Security tax and $14.50 in Medicare tax.

How much federal tax on $1,000? ›

Federal income tax basics
Tax rateSingleMarried filing jointly
10%$0 to $11,000$0 to $22,000
12%$11,001 to $44,725$22,001 to $89,450
22%$44,726 to $95,375$89,451 to $190,750
24%$95,376 to $182,100$190,751 to $364,200
3 more rows

What percent of a paycheck goes to taxes? ›

The personal income tax rate in California is 1.0%–13.30%. California does not have reciprocity with other states.

How much is a $1000 tax deduction worth? ›

For most non-business deductions, the savings are based upon your tax bracket. For example, if you are in the 12% tax bracket, a $1,000 deduction would save you $120 in taxes. On the other hand, if you are in the 32% tax bracket, the $1,000 deduction will save you $320 in taxes.

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