What is the difference between gross salary and take-home pay?

Your gross salary is the total amount of money you earn before any taxes or deductions are taken out. Your take-home pay, or net pay, is the actual amount of your paycheck after all federal taxes, FICA taxes, and pre-tax deductions have been subtracted.

Salary Tax Calculator (US 2025)

Q: Does this calculator include state or local taxes?

No, this calculator is for federal taxes only. State and local income tax rates vary widely across the United States. For a complete picture of your tax liability, you would need to account for your specific state and local regulations.

Tired of guessing what you’ll actually take home? Our free 2025 Salary Tax Calculator provides an instant, accurate estimate of your net pay after federal and FICA taxes. See exactly how your 401(k), HSA, and other deductions lower your tax bill with interactive sliders and a real-time results breakdown.

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How to Use This Paycheck Calculator

Enter Your Annual Salary: Input your gross salary in the first field or use the slider.
Select Your Filing Status: Choose your federal tax filing status from the dropdown menu.
Add Pre-Tax Deductions: Enter amounts for retirement (401k, IRA), HSA/FSA, or other pre-tax items.
View Your Results: The charts and tables will instantly update to show your estimated take-home pay and tax breakdown.

Your Estimated 2025 Paycheck

Take-Home Pay

Total Tax

Detailed Breakdown

Paycheck Breakdown (Monthly)

Annual Summary

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How Your 2025 Federal Taxes Are Calculated

This calculator provides a detailed estimate of your federal tax obligations for the 2025 tax year. It focuses exclusively on federal taxes and does not include state or local taxes, which vary significantly by location.

Your final take-home pay is your gross salary minus all pre-tax deductions and federal taxes. Here is the step-by-step process our calculator uses:

1. Calculating Your Adjusted Gross Income (AGI)

Your tax calculation doesn't start with your gross salary. First, we subtract your pre-tax deductions. These are powerful tools for lowering your tax bill. Common examples include:

Contributions to a 401(k) or traditional IRA
Contributions to a Health Savings Account (HSA) or Flexible Spending Account (FSA)
Premiums for health, dental, or vision insurance

The result is your Adjusted Gross Income (AGI), the foundation for your income tax calculation.

2. Determining Your Federal Taxable Income

Next, we subtract the 2025 standard deduction based on your filing status. The standard deduction is a specific dollar amount that reduces the amount of income on which you are taxed.

3. Calculating Your Federal Taxes

Two main types of federal taxes are withheld from your paycheck:

Federal Income Tax: This is calculated using the progressive 2025 marginal tax brackets. "Progressive" means that as your income increases, it is taxed at higher rates, but only the money within each specific bracket is taxed at that rate.
FICA Taxes (Payroll Taxes): This is a flat-rate tax that funds Social Security and Medicare.
- Social Security: 6.2% on income up to the annual wage base ($176,100 for 2025).
- Medicare: 1.45% on all your earnings, with an additional 0.9% on earnings over a certain threshold depending on your filing status.

Frequently Asked Questions (FAQ)

What is the difference between my gross salary and my take-home pay?

Your gross salary is your total annual pay before any deductions. Your take-home pay (or net pay) is the amount you receive after all pre-tax deductions and taxes have been subtracted.

Does this calculator include state or local taxes?

No, this calculator is for federal taxes only. State and local tax rates vary widely and can significantly affect your final paycheck.

How do pre-tax deductions like a 401(k) or HSA lower my taxes?

Pre-tax deductions lower your taxes by reducing your Adjusted Gross Income (AGI). Since federal income tax is calculated based on your AGI (after the standard deduction), a lower AGI means less of your income is subject to tax. This directly reduces your overall tax bill.

What is the fastest way to increase my take-home pay?

The fastest way to legally increase your take-home pay is to maximize your pre-tax deductions. Contributing more to your 401(k) or HSA/FSA not only helps you save for the future but also immediately reduces your taxable income, which means you pay less in taxes on each paycheck.