🧾 Payroll Calculator
Calculate your US employee net take-home pay after federal income tax, Social Security, Medicare, state tax, and pre-tax deductions. Based on 2024 federal tax brackets.
Pay Breakdown — Per Paycheck
| Net Take-Home Pay | — |
Annual Projections
Employer Cost (per paycheck)
| Total Employer Cost | — |
How Payroll Taxes Are Calculated
Federal income tax is withheld based on your annualized gross pay (after pre-tax deductions) using the 2024 IRS Publication 15-T percentage method. Social Security is 6.2% on wages up to $168,600/year. Medicare is 1.45% with no earnings limit.
Tips to Increase Your Take-Home Pay
- 1. Maximize pre-tax contributions (401k, HSA, FSA) — these reduce your taxable income dollar-for-dollar.
- 2. Review your W-4 allowances — claiming too few means overwithholding and an unnecessary interest-free loan to the government.
- 3. Contribute to a dependent care FSA if you have childcare costs — saves both income tax and FICA.
- 4. Check if your employer offers commuter benefits — transit/parking can be pre-tax up to $315/month (2024).
Frequently Asked Questions
Your employer uses IRS Publication 15-T to withhold federal income tax. Your annualized gross pay (minus pre-tax deductions and allowances) is mapped to the 2024 tax brackets, and the resulting annual tax is divided by your number of pay periods.
Under the redesigned 2020+ W-4, allowances were replaced with dollar amounts for dependents and other adjustments. The legacy allowance concept (each one roughly reduces taxable income by $4,300/year) still applies to older W-4 forms. The more allowances you claim, the less tax is withheld.
Pre-tax deductions are taken from your gross pay before taxes are calculated. Common examples include 401(k) contributions, health insurance premiums (employer-sponsored), HSA/FSA contributions, and commuter benefits. They reduce your taxable income, lowering your tax bill.
For 2024, Social Security tax (6.2%) only applies to the first $168,600 of earned income per year. Once you hit that threshold during the year, Social Security withholding stops for the rest of the year. Medicare tax (1.45%) has no limit.
This calculator uses the base Medicare rate of 1.45%. High earners (over $200,000 single / $250,000 married) also owe an additional 0.9% Medicare surtax, which is withheld by employers once annual wages exceed $200,000.
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