Payroll Estimate Calculator

Enter the hourly rate, hours worked, and tax rates to instantly calculate gross pay, all deductions, and the employee's actual take-home pay.

Earnings

Hourly Rate ? The employee's pay rate per hour before any deductions.

Hours Worked ? Total hours worked in this pay period. Use 40 for a standard full-time week.

Tax Rates

Federal Tax Rate ? US federal income tax withheld. Common rates: 10% (low income), 12%, 22%, 24% (mid), 32%+ (high income).

Federal withholding rate 12%

State Tax Rate ? State income tax rate. Ranges from 0% (TX, FL, etc.) to ~13% (CA). Check your state's withholding tables.

State withholding rate 5%

Other Deductions

Other Deductions ? Health insurance premiums, 401(k) contributions, garnishments, or any other pre/post-tax deductions. Benefits, 401(k), health insurance, garnishments

Pay Breakdown

Employee Take-Home Pay (Net Pay)

—

this pay period

Gross Pay

—

before any deductions

Federal Tax

—

withheld

State Tax

—

withheld

Total Deductions

—

all withholdings

Payslip Summary

Pay Distribution

Net Pay

Federal Tax

State Tax

Other

Annualised Projection (52 Weeks)

Gross Pay

—

Total Deductions

—

Net Pay

—

⚠ This calculator provides estimates only. Actual withholding may vary based on W-4 elections, FICA taxes (Social Security 6.2% + Medicare 1.45%), local taxes, pre-tax benefit adjustments, and other factors. Consult a payroll professional or CPA for compliance.

Understanding Your Paycheck

Gross Pay vs Net Pay

Gross pay is total earnings before any deductions. Net pay — your take-home — is what remains after taxes, benefits, and other withholdings are subtracted. These two numbers are almost never equal.

Net Pay = Gross Pay − Total Deductions

Federal Tax Withholding

Federal income tax is withheld based on the employee's W-4 form and IRS withholding tables. Rates range from 10% to 37% depending on filing status and income level. This calculator uses the rate you specify as an estimate.

Federal Tax = Gross Pay × Federal Rate

FICA Taxes (Not Included)

This calculator focuses on income tax withholding. In practice, employees also pay FICA: 6.2% Social Security (on first $168,600 in 2024) and 1.45% Medicare — totalling 7.65%. Add these to "Other Deductions" for a more complete estimate.

FICA = 6.2% SS + 1.45% Medicare

Pre-Tax Deductions

Contributions to 401(k) plans, health insurance premiums, HSA contributions, and FSA deductions are typically pre-tax — they reduce gross pay before taxes are calculated. This lowers taxable income and reduces the tax bill.

Taxable Gross = Gross − Pre-Tax Deductions

What employers and employees should understand about payroll

Gross pay and employer cost are different. Employers also pay the matching FICA contribution (7.65%), unemployment insurance (FUTA/SUTA), and workers' comp — adding roughly 10–15% on top of gross wages as the true cost of employment.
W-4 elections control withholding amount. Employees can adjust their federal withholding by updating their W-4. Claiming more allowances reduces withholding and increases take-home pay — but may result in a tax bill at year end.
State tax rates vary dramatically. Seven states have no income tax (TX, FL, NV, WA, WY, SD, AK). California tops out at 13.3%. Always use your specific state's withholding rate for accuracy.
Pre-tax benefits significantly increase effective take-home. A $500/month employer-sponsored health plan that the employee contributes $100 toward pre-tax is worth more than a $100 raise, because the $100 isn't taxed.
Overtime changes the math. Hours above 40 per week must be paid at 1.5× the regular rate under federal law (FLSA). This calculator uses a single rate — use it per period and factor overtime separately.

Frequently Asked Questions

Gross pay is total earnings before any deductions — it's the number on the offer letter. Net pay (take-home pay) is what actually gets deposited into the employee's bank account after federal taxes, state taxes, FICA, health insurance, and any other deductions are removed. The gap between the two is often 20–35% of gross.

Not automatically. FICA taxes (6.2% Social Security + 1.45% Medicare = 7.65%) apply to virtually all W-2 employees and can be added to the "Other Deductions" field for a more complete estimate. Self-employed individuals pay double this (15.3%) as self-employment tax.

Use 10% for lower-income earners (under ~$11,600/year single). Use 12% for incomes up to ~$47,000. Use 22% for incomes up to ~$100,500. Use 24% for incomes up to ~$191,950. These are marginal rates — actual effective withholding may be lower. Check the IRS withholding tables or Publication 15-T for precise amounts.

Divide the annual salary by the number of pay periods (26 for biweekly, 24 for semi-monthly, 12 for monthly). That gives gross pay per period. Then enter that as hourly rate × 1 hour (or use the annualised view). Alternatively, divide the annual salary by 52 and enter it as a weekly gross equivalent.

Other deductions can include: FICA taxes (7.65%), employee health/dental/vision insurance premiums, 401(k) or retirement plan contributions, HSA or FSA contributions, union dues, wage garnishments, and any other recurring withholdings. Including FICA in this field will give you a significantly more accurate net pay estimate.