1. What Is The Salary Calculator?

The Salary Calculator estimates your net pay after accounting for federal tax, state tax, and FICA contributions based on your gross salary, filing status, and state of residence for the 2024/25 tax year.

2. How Does The Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Your total earnings before any deductions
• Federal Tax — Income tax paid to the federal government
• State Tax — Income tax paid to your state government
• FICA — Social Security and Medicare taxes

3. Understanding Tax Components

Federal Tax: Progressive tax system with rates from 10% to 37% based on income and filing status.

State Tax: Varies by state, with some states having no income tax and others having progressive or flat tax systems.

FICA: Consists of Social Security tax (6.2% on income up to $168,600) and Medicare tax (1.45% on all income, plus 0.9% on income over $200,000 for high earners).

4. Using The Calculator

Tips: Enter your gross salary in USD, select your filing status and state of residence. The calculator will estimate your net pay and tax breakdown.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: This provides an estimate based on standard tax rates. Actual taxes may vary based on additional factors like deductions, credits, and specific circumstances.

Q2: What states have no income tax?
A: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.

Q3: Are 401(k) contributions considered in this calculation?
A: This calculator assumes pre-tax deductions are already accounted for in your gross salary input.

Q4: How often are tax brackets updated?
A: Federal tax brackets are typically adjusted annually for inflation. State tax rules vary by state.

Q5: What's the difference between marginal and effective tax rate?
A: Marginal tax rate is the rate on your last dollar of income, while effective tax rate is your total tax divided by total income.