Paycheck Calculator - Free Take-Home Pay Calculator 2024
Free paycheck calculator to estimate take-home pay after taxes. Calculate federal, state, FICA taxes and deductions. Includes 2024 tax brackets and comprehensive paycheck guide.
Paycheck Calculator
Calculate your take-home pay after federal and state taxes, FICA deductions, and other withholdings. Our free 2024 paycheck converter helps you understand exactly what to expect on your paycheck and how to optimize your deductions for maximum take-home pay.
Understanding Your Paycheck
Your paycheck represents the culmination of various calculations involving federal and state taxes, Social Security, Medicare, and voluntary deductions. Understanding each component helps you make informed decisions about your withholdings and take-home pay.
Gross pay is your total earnings before any deductions—the amount your employer agrees to pay you. Net pay (take-home pay) is what remains after all mandatory taxes and voluntary deductions are subtracted. For most workers, net pay ranges from 65% to 80% of gross pay, depending on tax bracket, state of residence, and benefit elections.
| Type | Examples | Tax Treatment | Notes |
|---|---|---|---|
| Mandatory Federal | Federal Income Tax, Social Security, Medicare | Required by law | Based on W-4 and earnings |
| Mandatory State | State Income Tax, SDI, SUI | Varies by state | 9 states have no income tax |
| Mandatory Local | City/County taxes | Varies by locality | Common in PA, OH, NY |
| Voluntary Pre-Tax | 401(k), HSA, FSA, Health Insurance | Reduces taxable income | Immediate tax savings |
| Voluntary Post-Tax | Roth 401(k), Life Insurance, Garnishments | After tax | No immediate tax benefit |
Federal Income Tax Withholding
Federal income tax is calculated using a progressive tax system where higher portions of income are taxed at higher rates. Your employer uses your W-4 form and IRS withholding tables to estimate the appropriate amount to withhold each pay period.
| Tax Rate | Income Range | Tax Owed |
|---|---|---|
| 10% | $0 - $11,600 | 10% of income |
| 12% | $11,601 - $47,150 | $1,160 + 12% of amount over $11,600 |
| 22% | $47,151 - $100,525 | $5,426 + 22% of amount over $47,150 |
| 24% | $100,526 - $191,950 | $17,168.50 + 24% of amount over $100,525 |
| 32% | $191,951 - $243,725 | $39,110.50 + 32% of amount over $191,950 |
| 35% | $243,726 - $609,350 | $55,678.50 + 35% of amount over $243,725 |
| 37% | $609,351+ | $183,647.25 + 37% of amount over $609,350 |
The W-4 form determines how much federal income tax your employer withholds. The 2020 redesign eliminated allowances and now uses a more straightforward approach.
| W-4 Section | Purpose | Impact on Withholding |
|---|---|---|
| Step 1: Personal Information | Filing status selection | Married typically withholds less than Single |
| Step 2: Multiple Jobs | For multiple jobs or working spouse | Increases withholding for combined income |
| Step 3: Dependents | Claim tax credits for dependents | Reduces withholding ($2,000/child under 17) |
| Step 4(a): Other Income | Interest, dividends, retirement income | Increases withholding |
| Step 4(b): Deductions | Itemized deductions over standard | Decreases withholding |
| Step 4(c): Extra Withholding | Additional flat amount per paycheck | Increases withholding |
FICA Taxes Explained
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. Unlike income tax, FICA is a flat tax rate applied to all wages up to certain limits.
| Tax | Employee Rate | Employer Rate | Wage Base Limit |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | $168,600 (2024) |
| Medicare (HI) | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% | 0% | Over $200,000 (single) |
| Total FICA | 7.65% | 7.65% | - |
Self-employed individuals pay both the employee and employer portions of FICA, totaling 15.3%. However, they can deduct half of self-employment tax as an income adjustment.
| Employment Type | FICA Rate | On $100,000 Income | Notes |
|---|---|---|---|
| W-2 Employee | 7.65% | $7,650 | Employer pays matching 7.65% |
| Self-Employed | 15.3% | $15,300 | Deduct 50% ($7,650) from income |
| Effective SE Rate | ~14.1% | ~$14,100 | After deduction benefit |
State Income Tax Overview
State income tax varies significantly across the United States. Nine states have no income tax, while others range from flat rates to highly progressive systems.
- Alaska - No income tax; permanent fund dividend to residents
- Florida - No income tax; popular for retirees and businesses
- Nevada - No income tax; funded by gaming and tourism taxes
- South Dakota - No income tax; low overall tax burden
- Texas - No income tax; higher property taxes
- Washington - No income tax; but has capital gains tax on high earners
- Wyoming - No income tax; low population, mineral revenue
- Tennessee - No income tax (as of 2021; previously taxed interest/dividends)
- New Hampshire - No income tax (interest/dividend tax ended 2025)
| Highest Rates | Top Rate | Lowest Rates | Rate |
|---|---|---|---|
| California | 13.3% | North Dakota | 2.9% |
| Hawaii | 11.0% | Pennsylvania | 3.07% |
| New Jersey | 10.75% | Indiana | 3.15% |
| Oregon | 9.9% | Michigan | 4.25% |
| Minnesota | 9.85% | Colorado | 4.40% |
Pre-Tax Deductions: Maximizing Take-Home Pay
Pre-tax deductions reduce your taxable income, providing immediate tax savings. Understanding and optimizing these deductions can significantly impact your net pay and long-term wealth.
| Deduction Type | 2024 Limit | Tax Savings Example* | Notes |
|---|---|---|---|
| 401(k)/403(b) | $23,000 ($30,500 if 50+) | $5,520/year | Employer match not counted toward limit |
| Traditional IRA | $7,000 ($8,000 if 50+) | $1,680/year | Deductibility phases out at higher incomes |
| HSA (Family) | $8,300 ($9,300 if 55+) | $1,992/year | Triple tax advantage; requires HDHP |
| HSA (Individual) | $4,150 ($5,150 if 55+) | $996/year | Unused funds roll over indefinitely |
| Healthcare FSA | $3,200 | $768/year | Use-it-or-lose-it (small carryover allowed) |
| Dependent Care FSA | $5,000 | $1,200/year | For childcare/eldercare expenses |
| Commuter Benefits | $315/month each | $907/year | Transit and parking separate limits |
*Tax savings assume 24% federal + effective state rate. Actual savings vary by tax bracket.
| Priority | Benefit | Reason |
|---|---|---|
| 1 | 401(k) to employer match | 100% return on employer match—never leave this |
| 2 | HSA (if eligible) | Triple tax-advantaged; best retirement vehicle |
| 3 | Dependent Care FSA | If you have eligible childcare expenses |
| 4 | 401(k) beyond match | Tax-deferred growth on remaining space |
| 5 | Healthcare FSA | If no HSA and predictable medical expenses |
| 6 | Commuter benefits | If you have transit or parking costs |
Reading Your Pay Stub
Understanding each line on your pay stub helps you verify accuracy and plan your finances effectively.
| Abbreviation | Meaning | Description |
|---|---|---|
| FIT / FWT | Federal Income Tax / Federal Withholding Tax | Based on W-4 and income |
| SIT / SWT | State Income Tax / State Withholding Tax | Varies by state |
| OASDI | Old-Age, Survivors, and Disability Insurance | Social Security (6.2%) |
| MED / HI | Medicare / Hospital Insurance | Medicare tax (1.45%) |
| FICA | Federal Insurance Contributions Act | Combined SS + Medicare |
| 401K / 403B | Retirement Plan Contributions | Pre-tax retirement savings |
| HSA | Health Savings Account | Pre-tax health savings |
| FSA / HCFSA | Flexible Spending Account | Pre-tax healthcare spending |
| DCFSA | Dependent Care FSA | Pre-tax childcare expenses |
| SDI | State Disability Insurance | Common in CA, NJ, NY, HI, RI |
| SUI | State Unemployment Insurance | Usually employer-paid |
| LTD / STD | Long/Short-Term Disability | Disability insurance premiums |
| GTL | Group Term Life | Life insurance; over $50K may be taxable |
| YTD | Year-to-Date | Cumulative amounts for the year |
Common Paycheck Mistakes to Avoid
Errors on paychecks are more common than you might think. Regular review helps catch and correct issues before they compound.
- Incorrect hours: Verify regular and overtime hours match your records
- Wrong pay rate: Especially after raises or job changes
- Missing overtime: Ensure OT is calculated at 1.5x (or applicable rate)
- Duplicate deductions: Benefits charged twice in error
- Incorrect tax withholding: Compare to expected based on W-4
- Missing reimbursements: Expense reimbursements should appear as non-taxable
- Wrong benefit elections: Deductions not matching your selections
- Garnishment errors: If applicable, verify correct amount and timing
Optimizing Your Paycheck
Strategic adjustments to your withholdings and deductions can significantly impact your financial situation throughout the year.
- Maximize pre-tax contributions: 401(k), HSA, and FSA contributions reduce taxable income
- Adjust W-4 withholding: If you receive large refunds, reduce withholding to keep more per paycheck
- Review benefit elections: Ensure you're not over-insured or paying for unused benefits
- Use commuter benefits: Pre-tax transit and parking saves 25-35% on commute costs
- Consider Roth vs. Traditional: Roth 401k doesn't reduce taxes now but provides tax-free retirement income
- You owed significant taxes last year and want to avoid penalties
- You have substantial non-wage income (investments, side gigs)
- You struggle to save and prefer a forced savings mechanism (tax refund)
- Your income varies significantly and you want a safety buffer
Special Paycheck Situations
Bonuses, commissions, and other supplemental wages are often taxed differently than regular pay. The IRS allows two methods for withholding.
| Method | How It Works | When Used |
|---|---|---|
| Flat Rate (22%) | 22% federal withholding on entire bonus | When bonus is separate from regular pay |
| Aggregate Method | Combined with regular pay, taxed as one payment | When bonus is on same check as salary |
Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours over 40 per week. Some states (California) require daily overtime after 8 hours.
RSUs (Restricted Stock Units) and stock options have unique tax implications that appear on your paycheck.
| Type | When Taxed | How Taxed | On Paycheck |
|---|---|---|---|
| RSUs | At vesting | Ordinary income | Shows as income with taxes withheld |
| ESPP | At sale | Varies | Purchase deduction shown |
| ISOs | At exercise (AMT) / sale | Complex | Exercise may appear |
| NSOs | At exercise | Ordinary income on spread | Shows as income with taxes |