How is take-home pay calculated?
Your gross pay is reduced by pre-tax deductions (like 401(k) and health premiums), then federal income tax is applied to what remains after the standard deduction, using progressive tax brackets. Separately, FICA taxes โ 6.2% Social Security (up to the wage base) and 1.45% Medicare โ come out of your full gross.
2025 federal tax brackets (single)
10% to $11,925 ยท 12% to $48,475 ยท 22% to $103,350 ยท 24% to $197,300 ยท 32% to $250,525 ยท 35% to $626,350 ยท 37% above. The standard deduction for a single filer is $15,000.
What this estimate leaves out
State and local income tax (this is federal only), pre-tax benefits beyond the field above, retirement matching, and itemized deductions. Nine states have no state income tax โ there your real take-home is closer to this figure.
Frequently asked questions
Does this include state taxes?
No โ it estimates federal income tax and FICA only. State income tax varies from 0% (e.g. TX, FL, WA) to over 13% (CA), so add your state rate separately.
Is this for a single filer?
Yes. It uses the single-filer standard deduction and brackets. Married-filing-jointly thresholds are roughly double, so your tax would typically be lower.
Why is FICA taken from my full pay?
Social Security and Medicare are payroll taxes on gross wages and are not reduced by the standard deduction. Social Security stops at the annual wage base ($176,100 for 2025); Medicare has no cap.