What's Taken Out of Your Paycheck?
Your gross pay — hourly wage times hours worked — is rarely what you take home. Several deductions come out before the money reaches you. Federal income tax is withheld based on your earnings and the information on your W-4. FICA covers Social Security (6.2%) and Medicare (1.45%). Most states add a state income tax, though nine states (including Texas, Florida and Washington) have none. Finally, pre-tax deductions like a traditional 401(k) or health insurance premium reduce both your take-home pay and your taxable income.
How to Calculate Net Pay from Hourly Wage
The salary paycheck calculator (hourly) works in clear steps. First it finds your gross pay for the period by multiplying your hourly wage by hours per week and the right frequency factor. Then it annualizes that figure, subtracts pre-tax deductions and the standard deduction, and applies the 2025 federal tax brackets to estimate income tax. It adds Social Security and Medicare on your gross wages, applies your state's flat rate, and divides everything back to your pay period. What remains is your net, or take-home, pay.
For 2025 the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly, and the federal marginal rates run 10%, 12%, 22%, 24%, 32%, 35% and 37%. Social Security applies only to the first $168,600 of wages, and an extra 0.9% Medicare surtax kicks in above $200,000.
Understanding Your Pay Stub
A pay stub lists your gross pay, each tax and deduction, and your net pay, usually with both "current" and "year-to-date" columns. Watching the year-to-date figures helps you spot when you cross the Social Security wage cap (after which that 6.2% stops) or when a bonus pushes more of your income into a higher bracket. If your withholding looks too high or too low, the fix is your W-4 — adjusting it changes how much federal tax your employer holds back each period. Remember that withholding is an estimate; your true tax is settled when you file your return, which is why some people get refunds and others owe.
This tool gives a clean, realistic estimate, but it simplifies a few things real payroll software handles — local city taxes, progressive state brackets, post-tax deductions and credits among them. Treat the result as a strong ballpark, not an exact paystub.