Take Home Pay Calculator

Take home pay is calculated by subtracting all deductions from your gross salary. The formula is: Take Home Pay = Gross Salary - (Gross Salary × Tax Rate / 100) - Other Deductions. Other deductions may include retirement contributions, health insurance, and other withholdings.

Gross pay is your total salary before any deductions. Net pay (take home pay) is the amount you actually receive after all deductions, including taxes, insurance, retirement contributions, and other withholdings have been subtracted.

Common paycheck deductions include: federal income tax, state income tax, Social Security tax, Medicare tax, health insurance premiums, retirement contributions (401k, IRA), flexible spending accounts, wage garnishments, and voluntary deductions like union dues or charity contributions.

You can increase your take home pay by: adjusting your tax withholdings (W-4 form), contributing to pre-tax retirement accounts, utilizing flexible spending accounts, reviewing and optimizing insurance plans, negotiating a higher salary, or exploring tax credits and deductions you may qualify for.

Yes, bonus payments are typically taxed at a flat supplemental rate of 22% for federal taxes (37% for bonuses over $1 million). Some states may also have different withholding rates for bonuses. However, when you file your annual tax return, bonuses are ultimately taxed as ordinary income.