function calculateTakeHomePay() {
var gross = parseFloat(document.getElementById('annualGross').value);
var status = document.getElementById('filingStatus').value;
var preTaxMonthly = parseFloat(document.getElementById('preTax').value) || 0;
var stateRate = parseFloat(document.getElementById('stateTaxRate').value) || 0;
if (!gross || gross <= 0) {
alert("Please enter a valid annual salary.");
return;
}
var preTaxAnnual = preTaxMonthly * 12;
var ficaRate = 0.0765; // 6.2% SS + 1.45% Medicare
var ficaTax = gross * ficaRate;
// 2024 Standard Deductions (Approx)
var standardDeduction = (status === 'single') ? 14600 : 29200;
var taxableIncome = gross – standardDeduction – preTaxAnnual;
if (taxableIncome 609350) fedTax += (taxableIncome – 609350) * 0.37 + 183647;
else if (taxableIncome > 243725) fedTax += (taxableIncome – 243725) * 0.35 + 55678;
else if (taxableIncome > 191950) fedTax += (taxableIncome – 191950) * 0.32 + 39110;
else if (taxableIncome > 100525) fedTax += (taxableIncome – 100525) * 0.24 + 17168;
else if (taxableIncome > 47150) fedTax += (taxableIncome – 47150) * 0.22 + 5432;
else if (taxableIncome > 11600) fedTax += (taxableIncome – 11600) * 0.12 + 1160;
else fedTax += taxableIncome * 0.10;
} else {
if (taxableIncome > 731200) fedTax += (taxableIncome – 731200) * 0.37 + 177597;
else if (taxableIncome > 487450) fedTax += (taxableIncome – 487450) * 0.35 + 92334;
else if (taxableIncome > 383900) fedTax += (taxableIncome – 383900) * 0.32 + 59200;
else if (taxableIncome > 201050) fedTax += (taxableIncome – 201050) * 0.24 + 34336;
else if (taxableIncome > 94300) fedTax += (taxableIncome – 94300) * 0.22 + 10864;
else if (taxableIncome > 23200) fedTax += (taxableIncome – 23200) * 0.12 + 2320;
else fedTax += taxableIncome * 0.10;
}
var stateTax = (taxableIncome > 0) ? taxableIncome * (stateRate / 100) : 0;
var totalAnnualNet = gross – fedTax – ficaTax – stateTax – preTaxAnnual;
if (totalAnnualNet < 0) totalAnnualNet = 0;
var monthlyNet = totalAnnualNet / 12;
var biWeeklyNet = totalAnnualNet / 26;
document.getElementById('annualNet').innerText = '$' + totalAnnualNet.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('monthlyNet').innerText = '$' + monthlyNet.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('biWeeklyNet').innerText = '$' + biWeeklyNet.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('fedTaxLabel').innerText = '$' + fedTax.toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('ficaLabel').innerText = '$' + ficaTax.toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('otherDeductLabel').innerText = '$' + (stateTax + preTaxAnnual).toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('payResult').style.display = 'block';
}
Understanding Your Bring Home Pay
Calculating your bring home pay—often referred to as your net income—is a crucial step in effective financial planning. While your gross salary looks impressive on an offer letter, the amount that actually lands in your bank account is significantly lower due to federal, state, and local taxes, as well as payroll deductions.
How Your Net Pay is Calculated
To determine your take-home pay, we start with your gross income and subtract several mandatory and voluntary categories:
- Federal Income Tax: This is a progressive tax based on your income level and filing status. The more you earn, the higher the percentage you pay on the top portion of your income.
- FICA Taxes: This consists of Social Security (6.2%) and Medicare (1.45%). These are flat taxes applied to your gross earnings up to a certain limit.
- State and Local Taxes: Depending on where you live, you may pay a flat percentage or a progressive rate to your state or city government. Some states, like Florida or Texas, have no state income tax.
- Pre-Tax Deductions: These are contributions made before taxes are calculated, such as 401(k) contributions, health insurance premiums, and Flexible Spending Accounts (FSA). These actually lower your taxable income.
Example: The $75,000 Salary Case Study
If you are a single filer earning $75,000 annually with no state tax and contributing $400 monthly to a 401(k), your calculation would look like this:
- Gross Monthly: $6,250
- FICA Deductions: Approximately $478 per month.
- Pre-Tax Deduction: $400 (401k).
- Federal Tax: Roughly $650 per month (after standard deductions).
- Estimated Monthly Bring Home: ~$4,722.
Frequently Asked Questions
What is a standard deduction?
The standard deduction is a set dollar amount that reduces the income on which you're taxed. For the 2024 tax year, it is $14,600 for single filers.
Why is my paycheck lower than this calculator?
Common reasons include post-tax deductions like ROTH 401(k) contributions, wage garnishments, union dues, or higher-than-average health insurance premiums that vary by employer.
Strategies to Increase Your Net Pay
While you cannot avoid mandatory taxes, you can optimize your pay by adjusting your tax withholdings via Form W-4 or increasing pre-tax contributions to lower your overall tax bracket. Use this calculator as a baseline to help you budget for rent, car payments, and savings goals.