New Hampshire is one of only a few states in the U.S. with no state-level income tax on wages. This significantly simplifies paycheck calculations compared to states with graduated income tax brackets. However, there are still other deductions that will affect your take-home pay.
Key Components of Your Paycheck:
Gross Pay: This is your total earnings before any deductions. It's typically calculated by dividing your annual salary by your pay frequency. For example, if you earn $60,000 annually and are paid bi-weekly (26 pay periods per year), your gross pay per paycheck would be $60,000 / 26 = $2,307.69.
Deductions: These are amounts subtracted from your gross pay. Common deductions include:
Federal Income Tax: This is a significant deduction for most employees. The amount withheld depends on your W-4 form (number of allowances claimed, filing status, etc.) and your gross pay. The calculator uses a simplified estimation based on federal tax brackets.
FICA Taxes (Social Security and Medicare): These are federal taxes. Social Security is 6.2% of your gross pay up to an annual limit, and Medicare is 1.45% of your gross pay with no income limit. For most people, this is a combined 7.65%.
Health Insurance Premiums: If you have employer-sponsored health insurance, your share of the premium is typically deducted from your paycheck. This calculator assumes these are monthly premiums, which are then prorated to your pay period.
Retirement Contributions: Contributions to pre-tax retirement accounts like a 401(k) reduce your taxable income. This calculator assumes these are monthly contributions, prorated to your pay period.
Other Deductions: This could include things like life insurance, disability insurance, union dues, etc. These are not included in this basic calculator.
Net Pay (Take-Home Pay): This is the amount you actually receive after all deductions are taken from your gross pay.
Why Use This Calculator?
While New Hampshire's lack of state income tax is a major benefit, understanding how federal taxes and voluntary deductions impact your take-home pay is crucial for budgeting and financial planning. This calculator provides an estimate of your net pay, helping you to:
Plan your monthly expenses more accurately.
See the impact of pre-tax deductions like 401(k) contributions on your taxable income.
Estimate the financial benefit of your employer's health insurance plan.
Compare job offers by estimating the net income difference.
Important Notes:
This calculator provides an *estimate*. Actual net pay may vary based on specific W-4 elections, additional voluntary deductions, and employer-specific payroll processing.
New Hampshire does have a Business Profits Tax and a Business Enterprise Tax, but these do not apply to individual wage earners.
The federal income tax calculation is a simplified estimation and does not account for all potential tax credits, deductions, or specific filing situations. For precise tax withholding, refer to the IRS guidelines or consult a tax professional.
FICA tax rates are subject to change, particularly the Social Security wage base limit.
function calculatePaycheck() {
var annualSalary = parseFloat(document.getElementById("annualSalary").value);
var payFrequency = parseFloat(document.getElementById("payFrequency").value);
var healthInsurancePremiums = parseFloat(document.getElementById("healthInsurancePremiums").value);
var retirementContributions = parseFloat(document.getElementById("retirementContributions").value);
var netPayElement = document.getElementById("netPay");
// Clear previous results
netPayElement.textContent = "–";
// Input validation
if (isNaN(annualSalary) || annualSalary <= 0 ||
isNaN(payFrequency) || payFrequency <= 0 ||
isNaN(healthInsurancePremiums) || healthInsurancePremiums < 0 ||
isNaN(retirementContributions) || retirementContributions < 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// — Calculations —
// 1. Gross Pay per Paycheck
var grossPayPerPeriod = annualSalary / payFrequency;
// 2. FICA Taxes (Social Security and Medicare)
var ficaRate = 0.0765; // 6.2% SS + 1.45% Medicare
var socialSecurityWageBaseLimit = 168600; // Example for 2024, this changes annually
var taxableSocialSecurity = Math.min(grossPayPerPeriod * payFrequency, socialSecurityWageBaseLimit) – (grossPayPerPeriod * payFrequency – Math.min(grossPayPerPeriod * payFrequency, socialSecurityWageBaseLimit)); // This is tricky for per-period calc without tracking year-to-date. A simpler approach for a paycheck calc is often to just apply the rate unless it's known to be near the limit.
// For simplicity in this calculator, we'll assume the SS limit is not hit within a single pay period for most users.
// A more accurate calculator would track YTD earnings.
var ficaTaxAmount = grossPayPerPeriod * ficaRate;
// 3. Health Insurance Deduction (prorated from monthly)
var healthInsuranceDeduction = (healthInsurancePremiums / 30.44) * (payFrequency === 52 ? 7 : (payFrequency === 26 ? 14 : (payFrequency === 12 ? 30.44 : 1))); // Approximate days per period based on common frequencies
if (payFrequency === 12) healthInsuranceDeduction = healthInsurancePremiums; // If paid monthly, no proration needed
else if (payFrequency === 26) healthInsuranceDeduction = (healthInsurancePremiums / 12) * (12/26); // Monthly premium spread over bi-weekly
else if (payFrequency === 52) healthInsuranceDeduction = (healthInsurancePremiums / 12) * (12/52); // Monthly premium spread over weekly
else healthInsuranceDeduction = (healthInsurancePremiums / 12) * (12 / payFrequency); // General case
// 4. Retirement Contributions (prorated from monthly)
var retirementDeduction = (retirementContributions / 30.44) * (payFrequency === 52 ? 7 : (payFrequency === 26 ? 14 : (payFrequency === 12 ? 30.44 : 1))); // Approximate days per period
if (payFrequency === 12) retirementDeduction = retirementContributions; // If paid monthly, no proration needed
else if (payFrequency === 26) retirementDeduction = (retirementContributions / 12) * (12/26); // Monthly contribution spread over bi-weekly
else if (payFrequency === 52) retirementDeduction = (retirementContributions / 12) * (12/52); // Monthly contribution spread over weekly
else retirementDeduction = (retirementContributions / 12) * (12 / payFrequency); // General case
// 5. Taxable Income (Simplified – after pre-tax deductions)
var taxableIncome = grossPayPerPeriod – retirementDeduction; // Retirement is typically pre-tax
// 6. Federal Income Tax Withholding (ESTIMATION)
// This is a VERY simplified estimation. Real withholding depends on W-4, filing status, etc.
// We'll use rough federal tax brackets for 2023/2024 as an example.
// These rates are progressive, meaning only portions of income are taxed at higher rates.
// A precise calculation requires a detailed tax lookup based on filing status and allowances.
// For this basic calculator, we'll use an average effective rate or a simplified bracket.
// Let's approximate using a rough effective federal tax rate based on common scenarios.
// Example rough rates: Single ~10-22%, Married ~10-12%
// A more robust approach uses tax tables. For simplicity, let's use a placeholder effective rate.
// NOTE: This is the most complex part to accurately simulate without more inputs.
// We'll use a placeholder effective rate. A real calculator would need tax tables.
var estimatedFederalTaxRate = 0.15; // Placeholder: Assumes an average effective federal tax rate (adjust as needed or implement tax tables)
var federalIncomeTax = taxableIncome * estimatedFederalTaxRate;
// Ensure federal tax doesn't exceed taxable income (though unlikely with this simplified model)
federalIncomeTax = Math.max(0, federalIncomeTax);
// 7. Total Deductions
var totalDeductions = ficaTaxAmount + federalIncomeTax + healthInsuranceDeduction + retirementDeduction;
// 8. Net Pay
var netPay = grossPayPerPeriod – totalDeductions;
// Ensure net pay is not negative
netPay = Math.max(0, netPay);
// Display Result
netPayElement.textContent = "$" + netPay.toFixed(2);
}