Paycheck Calculator

Where Does Your Paycheck Go?

The number on your offer letter is your gross pay — what you actually receive is your net (take-home) pay. Between the two sits a stack of deductions. On a $75,000 salary, a typical single filer in a 5%-tax state keeps roughly 60–65% of each paycheck. Understanding each slice is the first step to optimizing what you keep.

The standard deductions, explained

• Federal income tax: the biggest variable slice. The U.S. uses marginal brackets — in 2025, a single filer pays 10% on the first $11,925, 12% up to $48,475, 22% up to $103,350, and so on. Only the dollars inside each bracket are taxed at that bracket's rate.
• Social Security (6.2%): taken on wages up to the annual wage base ($176,100 for 2025). Earnings above that are exempt.
• Medicare (1.45%): no cap — it applies to all wages, plus an extra 0.9% on high earners.
• State income tax: ranges from 0% (Texas, Florida, Washington and six others) to over 13% (California). Moving states can be a bigger raise than a promotion.
• Pre-tax benefits: 401(k) contributions and health insurance premiums come out before income tax is calculated, lowering your taxable income.

Three levers to raise your take-home pay

1. Max the pre-tax levers. Every dollar into a traditional 401(k) avoids income tax today. HSA contributions are even better — triple tax-advantaged.
2. Check your W-4 withholding. A big tax refund means you gave the IRS an interest-free loan all year. Adjusting your W-4 puts that money in your paychecks instead.
3. Mind the state line. Remote workers are sometimes taxed based on where the work is performed. Nine states levy no wage income tax at all — worth knowing before you relocate.

Paycheck FAQ

Why is my first paycheck of the year bigger? It usually is not — but your last paychecks can be: once your earnings pass the Social Security wage base, the 6.2% deduction stops for the rest of the year.

Is overtime taxed at a higher rate? No. Overtime is taxed as ordinary income. Withholding on a big overtime check can look higher because payroll software annualizes that one check, but it evens out at tax time.

Should I adjust my W-4 after a raise? Often yes. A raise can push part of your income into a higher bracket, and stale withholding is how people end up owing in April.

Disclaimer: this calculator provides rough estimates for planning purposes only and is not tax advice. Brackets, wage bases, and state rules change yearly — consult a tax professional for your situation.