Salary & Paycheck Tax Calculator
It estimates take-home pay from gross salary using progressive tax brackets and shows how much falls into each band.
Take-home per month
$5,328.96
Income tax
$8,550
FICA
$6,503
Taxable income
$62,900
Marginal rate
22%
Effective rate
17.7%
Tax per month
$1,254.38
| Band | Income | Tax |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $38,000 | $4,560 |
| 22% | $12,500 | $2,750 |
What it calculates
It estimates take-home pay from gross salary using progressive tax brackets and shows how much falls into each band.
Why it matters
Marginal rates confuse people constantly — a raise into a higher bracket never taxes your whole income at the higher rate.
Who it's for
Job seekers comparing offers, freelancers budgeting for tax, and anyone checking a payslip.
Formula
- Gross
- Total pay before deductions
- Bracket
- Income band with its own rate
- Net
- Take-home after tax
Worked example
Progressive tax on 60,000
- 1First band taxed at its own rate
- 2Only income above each threshold is taxed at the next rate
- 3Sum the tax from every band
Effective rate is always lower than your top marginal rate
How the salary & paycheck tax calculator works
Progressive systems slice income into bands. Your marginal rate is the rate on your last unit of income; your effective rate is total tax divided by gross income.
Income is taxed in bands: only the slice of income inside each band pays that band's rate. Your marginal rate applies to the next dollar earned, while the effective rate is what you actually pay overall.
Pre-tax deductions such as 401(k) or pension contributions reduce taxable income, but not payroll tax — FICA and National Insurance are charged on gross pay. US Social Security stops at the annual wage base while Medicare does not, and the UK personal allowance tapers away above £100,000.
Estimates exclude state, local and regional taxes, and use 2026 thresholds.
Common mistakes
- Believing a raise can leave you worse off — with progressive brackets it cannot.
- Forgetting social security, pension or student loan deductions.
- Applying one country's bands to another's income.
Tips and best practice
- Pension contributions often come out of pre-tax income, lowering taxable pay.
- Compare offers on net pay, not gross.
Frequently asked questions
What is take-home pay?
Gross pay minus income tax and other deductions such as social contributions and pension.
What is the difference between marginal and effective tax rate?
Marginal is the rate on your next unit of income; effective is total tax divided by total income.
Will a raise push me into a higher bracket and cost me money?
No. Only the income above the threshold is taxed at the higher rate.
Does this include social security?
It models income tax bands. Add national insurance, social security or payroll contributions separately.
Related calculators
Further reading
Methodology & trust
- Formula source
- Progressive marginal tax bracket arithmetic.
- Last updated
- 2026-07-28
- Privacy
- Every calculation runs in your browser. No inputs are sent to a server or stored.
- Accessibility
- Keyboard navigable, labeled inputs and WCAG AA color contrast.