How to calculate your US take-home pay
Gross pay vs. take-home pay
Your gross pay is the headline figure on your offer letter โ the total before anything is withheld. Your take-home pay (or net pay) is what actually lands in your bank account after federal income tax, Social Security and Medicare (together called FICA) and any pre-tax deductions such as a 401(k) or health insurance premium.
The gap between the two surprises most people. On a $5,000-per-month salary it is common to see $800โ$1,200 withheld before the money ever reaches you. Knowing how each piece is calculated lets you check your pay stub and plan a realistic budget.
Step 1 โ Federal income tax
The US uses progressive brackets: only the income inside each band is taxed at that bandโs rate, not your whole salary. For 2025 the single-filer brackets run 10%, 12%, 22%, 24%, 32%, 35% and 37%, with the first slice of income shielded by the standard deduction ($15,000 for single filers in 2025). Your effective rate โ total tax divided by total income โ is always lower than your marginal (top-bracket) rate.
Step 2 โ FICA: Social Security & Medicare
FICA is a flat payroll tax separate from income tax. In 2025 employees pay 6.2% Social Security on wages up to the $176,100 wage base, plus 1.45% Medicare on all wages (an extra 0.9% applies above $200,000). Together thatโs 7.65% off the top for most workers โ a big, often-overlooked chunk of the gap between gross and net.
Step 3 โ Pre-tax deductions lower your taxable income
Contributions to a traditional 401(k), an HSA or pre-tax health premiums come out before income tax is calculated, so they shrink the amount that gets taxed. Putting $500 a month into a 401(k) doesnโt cut your take-home by the full $500 โ because part of that $500 would otherwise have gone to tax, the real hit to your paycheck is smaller. Thatโs the quiet superpower of pre-tax saving.
A worked example
Take $6,000 gross per month ($72,000/yr), single, no pre-tax deductions. FICA takes 7.65% (~$459). Federal income tax on $72,000 after the standard deduction lands at an effective rate of roughly 11โ12%. Net pay comes to about $4,700โ$4,800 a month โ before any state income tax, which 41 states also levy. The exact figure depends on your W-4, state and benefits, which is why running your own numbers beats any rule of thumb.