Salary Take-Home Pay Calculator

How Federal Income Tax Is Calculated on Your Salary

Federal income tax is progressive: you don’t pay one flat rate on your whole salary. You pay different rates on different portions of your income.

For 2026, a single filer pays 10% on the first $11,925, then 12% on income up to $48,475, then 22% up to $103,350, and so on up to 37% on income above $626,350.

Before any of that applies, the IRS subtracts your standard deduction: $15,000 for single filers in 2026. So if you earn $60,000, you’re taxed on $45,000. That $45,000 lands mostly in the 12% bracket, with a small slice in the 22% bracket. Your effective federal rate ends up around 10–11%, not 22%.

What Is FICA Tax: Why It Comes Off Before Everything Else

FICA (Federal Insurance Contributions Act) covers Social Security and Medicare. These are separate from income taxes and they’re flat: no deductions, no brackets.

Social Security is 6.2% on wages up to $176,100 in 2026. Medicare is 1.45% on all wages. Combined: 7.65%. On a $75,000 salary, that’s $5,738, taken before federal and state income taxes are even calculated.

If you earn over $200,000 as a single filer (or $250,000 married), you also owe an additional 0.9% Medicare surcharge on the amount above that threshold.

Why Your State Matters More Than You Think

Nine states have zero income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The difference is real. On a $90,000 salary, a single filer in Texas takes home about $68,800. The same person in California takes home around $60,900, a $7,900 gap purely from state income taxes.

At the top end, California’s 13.3% state rate is the highest in the US. New York and New Jersey both top 10%. Meanwhile, nine states take exactly $0 in state income tax.

How to Use the City Comparison

A higher salary in an expensive city often isn’t actually worth more. The city comparison solves this.

Enter the same salary in two different states and the tool shows you the cost-of-living adjusted equivalent. It answers: “What would I need to earn in Austin to have the same purchasing power as my $130,000 in San Francisco?”

The answer is usually surprising. San Francisco’s cost of living index is roughly 170–180 versus the US average of 100. Austin sits around 95–100. That means $130,000 in San Francisco buys roughly the same lifestyle as $72,000–$76,000 in Austin. When you factor in Texas’s zero state income tax, the gap widens further.

For remote workers who can choose where to live, this comparison is often worth $20,000–$40,000 a year in real purchasing power.

How 401(k) Contributions Lower Your Tax Bill

A traditional 401(k) contribution is pre-tax: it reduces your taxable income before federal and most state taxes are applied.

Example: You earn $80,000 and contribute 10% ($8,000) to your 401(k). Your taxable income drops to $72,000. In the 22% federal bracket, that $8,000 saves you roughly $1,760 in federal taxes, plus whatever your state would have taken.

The catch: you still pay FICA (Social Security and Medicare) on your full $80,000. The tax break only applies to income taxes, not payroll taxes.

Frequently Asked Questions

How much of my salary do I actually take home?

It depends on your income, state, and filing status. As a rough guide: on a $60,000 salary as a single filer in a typical state, you take home around $46,000–$49,000 per year. On $100,000, expect roughly $72,000–$78,000. High-income earners in high-tax states like California or New York keep significantly less. Use the calculator to get your exact number.

What is FICA tax?

FICA stands for Federal Insurance Contributions Act. It covers two taxes: Social Security (6.2% of your wages, up to the annual wage base) and Medicare (1.45% on all wages). Combined, that’s 7.65% off the top of every paycheck before federal and state income taxes are even calculated. On a $75,000 salary, FICA alone takes about $5,738.

Which states have no income tax?

Nine states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these, your take-home pay is noticeably higher. A $90,000 salary in Texas keeps roughly $8,000 more per year than the same salary in Illinois.

How does filing status affect take-home pay?

Filing status determines which tax brackets apply and how large your standard deduction is. Single filers get a smaller standard deduction than Married Filing Jointly, so they pay more tax on the same income. On a $80,000 salary, a single filer pays roughly $2,000–$3,000 more in federal tax than a married filer would.

What does “equivalent salary” mean in the city comparison?

It answers the question: “What would I need to earn in City B to have the same purchasing power as my salary in City A?” If you earn $120,000 in San Francisco, the equivalent salary in Austin is around $68,000–$72,000 because Austin’s cost of living is roughly 40% lower. The comparison uses cost-of-living index data to calculate this.

Does a 401(k) contribution lower my taxes?

Yes. Traditional 401(k) contributions are pre-tax, which means they reduce your taxable income before federal and most state taxes are calculated. Contributing 10% of a $80,000 salary reduces your taxable income to $72,000, saving roughly $1,760 in federal taxes alone. You still pay FICA on the full $80,000.

What is the difference between effective and marginal tax rate?

Your marginal tax rate is the rate on your last dollar earned. If you’re in the 22% federal bracket, that doesn’t mean you pay 22% on everything. Your effective tax rate is the actual average you pay across your whole income. On a $75,000 salary, your marginal federal rate might be 22%, but your effective federal rate is typically around 13–15%.

How accurate is this calculator?

Very accurate for estimation purposes. It uses the current year’s federal tax brackets, the standard deduction, and each state’s income tax rates. It does not account for itemized deductions, tax credits, investment income, or employer-side withholding differences. For official tax filing, use a CPA or the IRS withholding estimator.

About This Tool

Most paycheck calculators show you one number and call it a day. This one shows you the full breakdown: federal tax, state tax, Social Security, and Medicare as separate dollar amounts, so you actually understand where your money goes.

The city comparison is the part nobody else does for free. Remote workers comparing offers in Austin vs. Seattle vs. Miami can see adjusted purchasing power side by side in about ten seconds. No paywall, no account required, no ads between you and your results.

Formulas use current IRS tax brackets and state rates. Not financial advice. Use a CPA for official tax filing.