Gross vs. net
How gross salary becomes net take-home pay
"Gross to net" is the single most important conversion in personal finance, because the gross number is what you negotiate but the net number is what you live on. Here is exactly how this calculator strips a gross salary down to the cash you can actually spend.
The four deductions that shrink your gross
- Federal income tax — applied to your taxable income (gross minus pre-tax deductions minus the standard deduction) using the 2026 IRS brackets.
- Social Security — 6.2% of wages up to the 2026 wage base of $184,500.
- Medicare — 1.45% of all wages, with an extra 0.9% above $200,000 (single).
- State income tax — zero in nine states; a flat or progressive rate elsewhere. Check your state page.
Gross-to-net at a glance
| Gross salary | Approx. net (federal only) | % kept |
|---|---|---|
| $50,000 | ~$42,400 | ~85% |
| $72,000 | ~$59,200 | ~82% |
| $100,000 | ~$79,200 | ~79% |
| $150,000 | ~$113,500 | ~76% |
Single filer, standard deduction, 2026 federal brackets and FICA, no state tax. State tax lowers the % kept.
Why your real net may differ slightly
This tool computes a clean annual figure assuming the standard deduction and steady pay. Your actual paychecks can vary with W-4 elections, health-insurance premiums, bonuses (taxed at a flat 22% supplemental rate) and tax credits. For budgeting, the annual net figure here is the most reliable anchor.
Questions
Gross to net calculator FAQ
What is the difference between gross and net pay?
Gross pay is your total earnings before any deductions — the headline salary in your offer. Net pay, or take-home pay, is what lands in your bank account after federal income tax, Social Security, Medicare, state tax and any pre-tax deductions like a 401(k) are removed.
How do I convert gross salary to net pay?
Subtract federal income tax (on income after the standard deduction), 6.2% Social Security, 1.45% Medicare, and any state tax from your gross salary. This gross-to-net calculator does all of it automatically using the 2026 IRS brackets and the $184,500 Social Security wage base.
What percentage of gross pay is net pay?
Most US workers take home roughly 70% to 85% of gross pay. The exact share depends on income, filing status and state: higher earners and residents of high-tax states keep less, while no-income-tax states like Texas and Florida keep more.
Does the gross-to-net calculator include 401(k) deductions?
Yes. Enter your annual pre-tax 401(k) or HSA contributions and the calculator lowers your taxable income before computing federal tax, while still applying FICA to your gross wages, exactly as a real paycheck does.
- Sources: IRS Rev. Proc. 2025-32 (2026 brackets & standard deduction) · SSA 2026 OASDI wage base ($184,500) · IRS Topic No. 751.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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