How paycheck withholding works
Your take-home pay is what remains after two main types of federal withholding are subtracted from your gross wages: FICA taxes and federal income tax. Neither one is calculated on a single paycheck in isolation — both are based on your annual earnings, which is why changing your pay frequency alone never changes your total annual net pay.
FICA (Federal Insurance Contributions Act) covers Social Security and Medicare. Social Security is withheld at 6.2% of wages, but only up to an annual wage base limit (around $176,100 for 2025 — this limit is adjusted most years). Medicare is withheld at 1.45% of all wages with no upper limit, and an Additional Medicare Tax of 0.9% applies to wages above $200,000 (single) or $250,000 (married filing jointly).
Federal income tax, on the other hand, is calculated progressively: your taxable income (gross wages minus the standard deduction) is split into brackets, and each bracket is taxed at its own marginal rate — never your entire income at the top rate you reach.
2025 federal tax brackets (single filers)
The table below shows the 2025 federal income tax brackets used by this calculator for single filers, after the standard deduction is applied. Married filing jointly and head of household use their own wider brackets, which this calculator applies automatically based on your selection.
| From | To | Marginal rate |
|---|---|---|
| $0 | $11,925 | 10% |
| $11,925 | $48,475 | 12% |
| $48,475 | $103,350 | 22% |
| $103,350 | $197,300 | 24% |
| $197,300 | $250,525 | 32% |
| $250,525 | $626,350 | 35% |
| $626,350 | and above | 37% |
2025 tax year, single filers, after the standard deduction (~$15,000). Brackets are adjusted for inflation most years by the IRS.
Gross pay vs. net pay
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what actually hits your bank account after FICA, federal income tax, and — outside the scope of this calculator — state income tax and any pre-tax deductions like 401(k) contributions or health insurance premiums. This calculator intentionally focuses on the federal portion so you can compare offers across different states on a like-for-like basis.
State income tax is not included
State income tax varies enormously across the US. States like Texas, Florida, Washington, Nevada, Wyoming, South Dakota, Tennessee and Alaska currently have no state income tax at all, while states like California or New York have their own progressive brackets that can add a significant amount to your total withholding. Always check your specific state's department of revenue for exact figures that apply to your paycheck.