Gross pay is the total you earn before anything is deducted. Net pay, also called take-home pay, is what lands in your account after taxes and deductions. Job ads and offer letters quote gross pay, so it helps to know how big the gap is.
What sits between the two
- Federal income tax
- Social Security (6.2%) and Medicare (1.45%), together called FICA, 7.65% of wages up to the Social Security wage base
- State income tax, where it applies, and state payroll programs
- Voluntary deductions such as 401(k) contributions and health insurance premiums
How much do you keep?
The table shows yearly take-home for a single filer with no 401(k) or other deductions, under 2026 rules, in three places: a state with no income tax (Texas), California, and New York.
| Gross salary | Take-home in Texas | Share kept (Texas) | Take-home in California | Take-home in New York |
|---|---|---|---|---|
| $40,000 | $34,320 | 86% | $33,252 | $32,553 |
| $60,000 | $50,390 | 84% | $48,037 | $47,457 |
| $80,000 | $65,110 | 81% | $61,005 | $61,010 |
| $100,000 | $79,180 | 79% | $72,969 | $73,877 |
| $150,000 | $113,791 | 76% | $102,280 | $105,538 |
Most people keep somewhere between about 70% and 85% of gross pay before voluntary deductions. The share falls as pay rises because the federal income tax is progressive: higher slices of income are taxed at higher rates.
Marginal vs average tax rate
Your federal "bracket" (for example 22%) is a marginal rate that only applies to the part of income above the bracket's threshold. Your average rate, total tax divided by gross pay, is lower. The calculator shows both your federal bracket and the total share of your pay that goes to taxes.
Why your first paycheck can surprise you
- Withholding is based on your Form W-4, and the default can differ from your real tax.
- Benefits are often deducted in the first full pay period.
- If a pay period is partial, the gross amount is smaller than you expect.
Which number should you compare?
When comparing job offers, compare net pay in the state where you will work, and add the value of benefits and employer match separately. A higher gross salary in a high-tax state can leave you with less than a lower one in a state with no income tax.
Try the take-home pay calculator to see your own numbers, or pick your state from the state list.