How Does a Paycheck Calculator Work?
A paycheck calculator estimates your take-home pay by starting with your gross income and subtracting applicable taxes and deductions.
What Is Gross Pay?
Gross pay is the total amount you earn before taxes and other deductions are taken from your paycheck.
What Is Net Pay?
Net pay is the amount of money you receive after taxes, deductions, and other applicable withholdings. It is commonly called your take-home pay.
What Taxes Are Taken Out of a Paycheck?
- Federal income tax
- Social Security tax
- Medicare tax
- State income tax
- Local income tax, where applicable