See exactly what you keep from every paycheck

Take-home pay (also called net pay) is the amount you actually receive in your bank account after all taxes and deductions are withheld from your gross paycheck. This includes federal income tax, state income tax, Social Security (6.2%), Medicare (1.45%), and any pre-tax deductions like health insurance or 401(k) contributions.

Federal income tax uses a progressive bracket system. For 2025, the brackets for single filers start at 10% on the first $11,925 of taxable income, rising to 37% on income above $626,350. Your employer withholds taxes each pay period based on your W-4 form and annualizes your income to estimate your yearly tax liability.

FICA stands for Federal Insurance Contributions Act. It covers two taxes: Social Security (6.2% on wages up to $176,100 in 2025) and Medicare (1.45% on all wages, plus an additional 0.9% on earnings over $200,000). Your employer matches these contributions.

Pre-tax deductions (like traditional 401(k), health insurance premiums, and HSA/FSA contributions) are subtracted from your gross pay before taxes are calculated. This lowers your taxable income, meaning you pay less in federal and state income taxes. For example, contributing $500/month to a 401(k) in the 22% bracket only reduces your take-home pay by about $390 — the tax savings cover the rest.

Many factors affect take-home pay beyond salary: your state (some have no income tax, others are up to 13%), filing status (married filers often withhold less), W-4 allowances, health insurance costs, retirement contributions, and other deductions all play a role. Two people earning $80,000 could have very different net pay depending on these factors.

Bonuses are considered supplemental wages. Under the flat withholding method, the IRS requires employers to withhold 22% federal tax on bonuses up to $1 million (37% above that), plus state taxes and FICA. Some employers use the aggregate method, combining the bonus with your regular pay and withholding based on your overall rate — this can result in higher withholding but is trued up at tax time.

Nine states have no general state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire taxes dividend and interest income but not wages. If you live in one of these states, you keep significantly more of your paycheck — sometimes thousands of dollars per year.