Updated: 2026-02-07·7 min read

How to Calculate Your Take-Home Pay (Step-by-Step)

You just got a job offer with a great salary number — but how much will actually hit your bank account? This step-by-step guide walks you through calculating your real take-home pay.

Your Situation

You received a job offer for $75,000/year and want to know your actual monthly and biweekly take-home pay after all taxes and deductions.

Understanding Your Deductions

Your gross salary is reduced by several mandatory deductions: federal income tax (based on brackets and filing status), state income tax (varies 0-13.3% by state), Social Security (6.2% on first $168,600), and Medicare (1.45% on all earnings). Additional voluntary deductions may include 401k contributions, health insurance premiums, and dental/vision insurance.

For our $75,000 example (single filer, standard deduction): federal tax is approximately $8,600, FICA is $5,738, leaving take-home of $60,662/year (before state tax).

Worked Example: $75,000 Salary

Let us walk through calculating take-home pay for a $75,000 single filer in three different states:

Salary ComponentTexas (0%)Illinois (4.95%)California (~6%)
Gross Salary$75,000$75,000$75,000
Standard Deduction-$14,600-$14,600-$14,600
Federal Tax-$8,600-$8,600-$8,600
State Tax$0-$3,713-$2,770
Social Security (6.2%)-$4,650-$4,650-$4,650
Medicare (1.45%)-$1,088-$1,088-$1,088
Annual Take-Home$60,662$56,949$57,892
Monthly Take-Home$5,055$4,746$4,824
Biweekly Take-Home$2,333$2,190$2,227

Pre-Tax Benefits Impact

Pre-tax deductions (401k, health insurance, HSA, FSA) reduce your taxable income, effectively saving you money. Contributing $6,000/year to a 401k on a $75,000 salary reduces your federal taxable income to $69,000, saving approximately $1,320 in federal tax.

Health insurance premiums ($100-$500/month pre-tax) also reduce taxable income. The net cost of a $300/month premium is effectively $210-$250/month after tax savings.

Action Steps

1

Start with gross salary

Your gross salary is the number on your offer letter before any deductions.

2

Subtract federal tax

Apply the 2026 tax brackets to your income after the standard deduction.

Tax Calculator
3

Subtract state tax

Apply your state's tax rate. Zero in TX, FL, WA; up to 13.3% in CA.

Salary Calculator
4

Subtract FICA

Social Security (6.2%) + Medicare (1.45%) = 7.65% on all earnings.

5

Use our calculator for precision

Our calculator handles all the math automatically with 2026 tax tables.

Take-Home Pay Calculator

Frequently Asked Questions