Frequently Asked Questions

Why is my take-home pay so much lower than my salary?

Your gross salary gets reduced by pre-tax deductions (401(k), health insurance), then federal income tax, then FICA (Social Security + Medicare), then any post-tax deductions. Each step chips away at the total. For most single earners making $80K, take-home is roughly 70–75% of gross.

Does this calculator include state taxes?

No. This calculator covers federal income tax, Social Security, Medicare, and Additional Medicare only. State and local taxes can add another 5–13% depending on where you live.

What is the Additional Medicare tax?

An extra 0.9% Medicare tax on wages exceeding $200,000. Only the amount above $200K is taxed at this rate, not your entire salary. It applies to single filers and combined wages for married couples.

Why is my taxable income different from my salary?

Taxable income equals gross salary minus pre-tax deductions minus the standard deduction ($15,750 single, $31,500 married, $25,000 HOH for 2025). The IRS never taxes your full salary — only what's left after these adjustments.

Does FICA apply to my full salary or just taxable income?

FICA (Social Security and Medicare) is calculated on your gross wages, not your taxable income. Social Security stops at $176,100 in wages. Medicare has no cap. Additional Medicare applies above $200K.

Why do two people with the same salary have different take-home pay?

Filing status changes the standard deduction. 401(k) contributions reduce taxable income. Health insurance costs vary. Additional Medicare applies above $200K. All of these create differences even at identical salaries.

Can I use this to compare job offers?

Yes — that's one of the best uses. Run each offer's salary, benefits, and 401(k) match through the calculator. Compare take-home numbers, not gross offers. A lower salary with better benefits can net more.