What comes out of a US paycheck
- Federal income tax — based on your W-4, filing status and the tax brackets.
- Social Security — 6.2% of wages, up to the yearly wage base ($184,500 in 2026).
- Medicare — 1.45% of all wages, plus 0.9% above $200,000 for single filers.
- State and local income tax — depends on where you live (some states have none).
- Pre-tax deductions — 401(k) contributions, health, dental and vision insurance, HSA.
Example
A $65,000 salary, paid every two weeks, single filer, 5% to a 401(k), $75 per paycheck for health insurance and a 4% state tax rate:
- Gross per paycheck: $2,500
- Take-home per paycheck: about $1,830 (about $47,600 a year)
Estimate your own with the free take-home pay calculator.
Use it to budget
Plug your take-home pay into the 50/30/20 rule or a zero-based budget. If you're self-employed, nobody withholds tax for you — see self-employment tax.
Frequently asked questions
What is the difference between gross pay and net pay?
Gross pay is what you earn before anything is taken out. Net pay — take-home pay — is what is left after taxes and deductions.
What percentage of my paycheck goes to taxes?
For many middle incomes, federal income tax, Social Security, Medicare and state tax together take roughly 15% to 30% of gross pay, depending on income, filing status, state and deductions.
Should I budget with gross or take-home pay?
Take-home pay. That is the money you actually have to spend and save. Lenders and landlords, however, usually look at gross income.
Written by
Finance Specialist & Editor, VaultlyApps
Researched against primary US sources and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
