This calculator helps you estimate your net pay after common deductions are taken from your gross salary. Understanding these deductions is crucial for personal budgeting and financial planning.
How it Works:
Your gross pay is the total amount of money you earn before any deductions. Your net pay, often called "take-home pay," is what remains after all applicable taxes and other contributions are subtracted.
Common Deductions Calculated:
Federal Income Tax: This is a progressive tax based on your income bracket and filing status. The rate entered here is a simplified annual percentage assumption applied per pay period.
State Income Tax: Similar to federal tax, but levied by your state government. Rates vary significantly by state. Some states have no income tax.
Social Security Tax: Funds retirement, disability, and survivor benefits. It has a wage base limit (an income cap) each year, though this calculator uses a flat rate for simplicity. In 2023/2024, the rate is 6.2% up to a certain income threshold.
Medicare Tax: Funds Medicare hospital insurance. It is a flat rate of 1.45% on all earnings, with no wage limit. High-income earners may pay an additional Medicare tax.
Health Insurance Premium: The cost of your employer-sponsored health insurance plan, typically deducted pre-tax.
Retirement Contributions (e.g., 401k): Contributions you elect to make to your retirement savings plan. These are often pre-tax deductions, reducing your taxable income.
The Calculation:
The calculator performs the following steps:
Calculate Taxable Income: Gross Pay minus pre-tax deductions (Health Insurance, Retirement Contributions).
Taxable Income = Gross Pay – Health Insurance – (Gross Pay * Retirement Contribution Rate / 100)
Calculate Income Taxes: Apply the federal and state tax rates to the Taxable Income.
Federal Tax = Taxable Income * Federal Tax Rate / 100 State Tax = Taxable Income * State Tax Rate / 100
Calculate Social Security & Medicare Taxes: Apply these rates to the Gross Pay.
Social Security Tax = Gross Pay * Social Security Rate / 100 Medicare Tax = Gross Pay * Medicare Rate / 100
Sum All Deductions: Add up all calculated taxes and the fixed health insurance premium.
Total Deductions = Federal Tax + State Tax + Social Security Tax + Medicare Tax + Health Insurance
Calculate Net Pay: Subtract total deductions from the gross pay.
Net Pay = Gross Pay – Total Deductions
Note: This is a simplified model. Actual paycheck deductions can be affected by numerous factors, including tax filing status, additional tax credits, other voluntary deductions (like life insurance or union dues), and employer-specific rules or caps on certain deductions. Always consult your official pay stub for precise figures.
function calculateDeductions() {
var grossPay = parseFloat(document.getElementById("grossPay").value);
var federalTaxRate = parseFloat(document.getElementById("federalTaxRate").value);
var stateTaxRate = parseFloat(document.getElementById("stateTaxRate").value);
var socialSecurityRate = parseFloat(document.getElementById("socialSecurityRate").value);
var medicareRate = parseFloat(document.getElementById("medicareRate").value);
var healthInsurance = parseFloat(document.getElementById("healthInsurance").value);
var retirementContribution = parseFloat(document.getElementById("retirementContribution").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
if (isNaN(grossPay) || grossPay <= 0 ||
isNaN(federalTaxRate) || federalTaxRate < 0 ||
isNaN(stateTaxRate) || stateTaxRate < 0 ||
isNaN(socialSecurityRate) || socialSecurityRate < 0 ||
isNaN(medicareRate) || medicareRate < 0 ||
isNaN(healthInsurance) || healthInsurance < 0 ||
isNaN(retirementContribution) || retirementContribution < 0) {
resultDiv.innerHTML = 'Please enter valid positive numbers for all fields.';
return;
}
// Calculate pre-tax deductions
var retirementAmount = grossPay * (retirementContribution / 100);
var preTaxDeductions = healthInsurance + retirementAmount;
// Ensure pre-tax deductions do not exceed gross pay
if (preTaxDeductions > grossPay) {
preTaxDeductions = grossPay;
retirementAmount = grossPay – healthInsurance;
if (retirementAmount < 0) retirementAmount = 0; // Cannot have negative retirement contribution
}
var taxableIncome = grossPay – preTaxDeductions;
if (taxableIncome < 0) taxableIncome = 0; // Taxable income cannot be negative
// Calculate taxes
var federalTax = taxableIncome * (federalTaxRate / 100);
var stateTax = taxableIncome * (stateTaxRate / 100);
var socialSecurityTax = grossPay * (socialSecurityRate / 100);
var medicareTax = grossPay * (medicareRate / 100);
// Calculate total deductions
var totalDeductions = federalTax + stateTax + socialSecurityTax + medicareTax + healthInsurance;
// Calculate net pay
var netPay = grossPay – totalDeductions;
// Display results
var formattedNetPay = netPay.toFixed(2);
var formattedTotalDeductions = totalDeductions.toFixed(2);
var formattedFederalTax = federalTax.toFixed(2);
var formattedStateTax = stateTax.toFixed(2);
var formattedSocialSecurityTax = socialSecurityTax.toFixed(2);
var formattedMedicareTax = medicareTax.toFixed(2);
var formattedRetirementAmount = retirementAmount.toFixed(2);
var formattedHealthInsurance = healthInsurance.toFixed(2);
resultDiv.innerHTML = `
Gross Pay: $${grossPay.toFixed(2)}
Total Deductions: $${formattedTotalDeductions}
Net Pay (Take-Home Pay): $${formattedNetPay}Breakdown:
Federal Tax: $${formattedFederalTax}
State Tax: $${formattedStateTax}
Social Security: $${formattedSocialSecurityTax}
Medicare: $${formattedMedicareTax}
Health Insurance: $${formattedHealthInsurance}
Retirement Contribution: $${formattedRetirementAmount}
`;
}