Using the tax calculator for your paycheck is easy. You plug in a few numbers, and the calculator will estimate how much money you can expect to see withheld from your pay each month. It’s an estimate rather than an exact figure because these calculations don’t include deductions such as retirement plan contributions, health insurance premiums, etc.

To get the most accurate estimate from this after-tax paycheck calculator, you may have to pull together a few documents before you start, including a recent pay stub.

Enter Your Gross Monthly Income

You probably already have an idea of how much you make each week, month, or year, especially if you use a money tracker. But if you aren’t sure, you can use the “gross pay” amount on your pay stub to figure it out. Here’s how.

•  If you’re paid twice a month: Multiply the gross pay by 2.

•  If you get paid every two weeks (26 paychecks a year): Multiply your gross pay by 26 and then divide that number by 12.

•  If you’re an hourly worker: Multiply your hourly wage by the average number of hours you work each week. Multiply that weekly wage by 52 and then divide it by 12.

Enter Your Federal Effective Tax Rate

You need two numbers to estimate your federal effective tax rate. Both of them are annual figures, not monthly.

•  Your taxable income for the year. This is 12 times your gross monthly income (described above) minus either 1) the standard deduction for your tax filing status or 2) your total itemized deductions.

•  The amount you expect to pay in federal taxes. This will vary with your taxable income and filing status. The dollar amounts for all income levels and statuses are listed in tax tables included with the Form 1040 instructions. Or you can calculate the tax amount yourself based on your taxable income and the IRS tax brackets.

The formula to calculate your effective tax rate for the year is:

Total Federal Tax Amount ÷ Taxable Income = Effective Tax Rate

Once you’ve done that math, you can type in (or use the slider to enter) the percentage.

Why Your Effective Tax Rate Is Not the Same as Your Marginal Tax Rate

The U.S. tax system levies income taxes at different rates for different income tiers. The range of incomes in each tier is known as a tax bracket.

Each tier’s income range will differ according to filing status (single, married filing jointly, married filing separately, and head of household). As income increases, surpassing each bracket’s threshold, higher tax rates apply — starting from 10% and rising as high as 37%. But each rate applies only to the dollars within its bracket.

Your marginal tax rate is the rate you pay on your last — or highest — dollar of income. The effective tax rate is an overall figure indicating what percentage of your gross income was paid in taxes.

You could use your marginal tax rate in the calculator, but the results won’t be as accurate as they would be with your effective tax rate.

Enter Your State and Local Effective Tax Rate

If you pay state and local taxes, you can add those rates together and enter the result in this field (or use the slider to do it).

Calculate

Once you’ve put in these three numbers, the after-tax paycheck calculator will instantly estimate your net monthly income, along with the amount of federal, state, and local income tax you can expect your employer to withhold from your check.

Benefits of Using a Paycheck Tax Calculator

Many people know how much they earn per hour, week, month, or year. But they may not have a good grasp of how much they actually take home after taxes, leading to common budgeting mistakes. Using a tax calculator for your paycheck can help you:

•  Put together a realistic budget. When your budget reflects what you actually earn, it can be easier to decide how much you can spend on your necessary versus discretionary expenses, or your needs vs. wants. You’re not just crossing your fingers and hoping the numbers work.

•  Make decisions about your retirement plan. The tax calculator’s paycheck findings can help you determine how much to contribute to your retirement savings every month. If your employer’s retirement plan offers a choice, you can consider whether it makes more sense to choose the pretax option, after-tax option, or both.

•  Figure out how much more you’ll actually put in your pocket after a raise. Maybe you’ve been offered a new job and you’re wondering if the pay bump will be worth making a change. You can use the calculator to help you compare what both jobs’ take-home pay might be after taxes. And with an online budget planner, you can sort out how the raise might affect your spending and saving.

How to Use Paycheck Tax Calculator Data to Your Advantage

You can also use the tax calculator’s paycheck data to improve your tax planning. Understanding how taxes work may help you reduce your tax withholding. You might also consider working with a financial professional who can advise you on taxes, answer your budgeting questions, and help with other planning matters.

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What Is a Paycheck Tax?

There are several different types of taxes that may come out of your paycheck. Some are paid entirely by you, and some are paid in part by your employer.

Types of Paycheck Taxes

The two main types of paycheck taxes you’ll face as an employee are income taxes and payroll taxes. Here’s a quick breakdown of how each one works.

•  Income tax: These federal (and sometimes state and local) taxes are paid by the employee only. Income tax nominal rates range from 10% to 37%; how much you’ll actually pay depends on your filing status and income. If you pay too much out of your paycheck toward these taxes, you may receive a refund when you file your income tax return. If you pay too little, you can expect to pay the difference when you file. Your employer uses information from your W-4 form to calculate how much should be withheld.

•  Payroll tax: Nearly everyone in the U.S. pays Federal Insurance Contributions Act (FICA) tax to help fund the Social Security and Medicare programs. For the 2025 tax year, you and your employer each contribute 6.2% of your gross earnings (up to the first $176,100 in wages) toward Social Security. And you each contribute 1.45% for Medicare payroll taxes, which applies to all your earnings. An additional 0.9% Medicare surcharge applies to earnings over $200,000. (For joint filers, that threshold is $250,000; for married taxpayers filing separately, it’s $125,000.)

These amounts are not included in our paycheck tax calculator’s estimate, but you can include them in your own calculations to get an even more precise take-home pay number.

Examples of Paycheck Tax Scenarios

Because taxes can be confusing, let’s walk through a couple of basic examples showing how much a person’s monthly paycheck might be affected by tax withholding.

Tristan, the Single Filer

Tristan is single and he doesn’t have any kids. He earns $5,000 a month, which is $60,000 annually. After subtracting the 2025 standard deduction for his filing status, which is $15,750, his taxable income is $44,250. Based on the 2025 federal tax brackets:

•  The first $11,925 will be taxed at 10% = $1,193

•  The rest of his income equals $32,325 ($44,250 – $11,925). It’s taxed at 12% = $3,879

•  Tristan’s total federal income tax equals $5,072 ($1,193 + $3,879).

•  $5,072 ÷ $44,250 = a federal effective tax rate of approximately 11.5%

Tristan’s blended state and local income tax rate comes to 2%.

Using the paycheck tax calculator, Tristan learns that the monthly federal income taxes withheld from his pay will be roughly $575, and the monthly state and local income taxes withheld will be about $100.

As a result, his net monthly income is estimated at $4,325.

Taylor, Married Filing Jointly

Taylor is married, her husband is currently unemployed, and she doesn’t have any kids. She earns $10,000 per month, or $120,000 annually. After subtracting the $31,500 standard deduction for her filing status (married filing jointly), Taylor’s taxable income is $88,500. Based on 2025 federal tax brackets:

•  The first $23,850 will be taxed at 10% = $2,385

•  The remainder of her income equals $64,650 ($88,500 – $23,850). It’s taxed at 12% = $7,758

•  Taylor’s total federal income tax equals $10,143 ($2,385 + $7,758).

•  $10,143 ÷ $88,500 = a federal effective tax rate of approximately 11.5%

Taylor’s blended state and local income tax rate is 6%.

Using the paycheck calculator, Taylor learns that the monthly federal income taxes withheld from her pay will be about $1,150 a month, and the monthly state and local income taxes withheld will be about $600.

That makes her estimated net monthly income $8,250.

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Paycheck Tax Tips

If you don’t plan ahead, the monthly tax bite can be painful. If you’re looking for ways to optimize your paycheck each month, you may want to consider:

•  Revisiting your W-4 choices. When a new employer gives you a Form W-4 along with dozens of other onboarding documents, it may be tempting to complete it as quickly as possible and without a lot of thought. But those choices could have a significant impact on how much of your paycheck goes straight to taxes — and how much you end up paying in taxes at the end of the year. The IRS recommends reviewing your withholding regularly, and you can find a tax withholding estimator tool on the IRS website.

•  Taking advantage of tax-deferred retirement savings. Deferring your tax liability until retirement with a 401(k) or other retirement plan can help minimize your taxes now and maximize the growth of your retirement savings.

•  Looking into the benefits of other pretax deductions. Your employer may offer several optional benefits, including insurance and child care plans, that are paid for through pretax deductions. These optional deductions will lower the amount of your paycheck, but you can get something useful for your money while also reducing your taxable income.

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