Pay Stub Calculator

This pay stub calculator computes your net take-home pay by starting with your gross earnings and systematically subtracting all required deductions. For hourly workers, it multiplies your rate by hours worked, adding overtime premium (1.5x rate) for hours over 40. For salaried employees, it divides your annual salary by the number of pay periods per year.

The calculator applies federal and state income tax rates you specify, plus mandatory FICA taxes. Social Security tax takes 6.2% of your gross pay (up to the annual wage base limit), while Medicare tax takes 1.45% with no income limit. These percentages are set by federal law and appear on every paycheck.

Your final net pay represents the actual amount deposited into your bank account. The calculator shows what percentage of your gross pay you keep, helping you understand your effective tax burden. This percentage varies significantly based on your income level, tax bracket, and state of residence.

Use this calculator before accepting a job offer to understand your actual take-home pay, not just the quoted salary or hourly rate. A $60,000 salary sounds impressive until you realize you will only see about $45,000 after taxes. This helps you budget accurately and compare job offers fairly.

Run calculations when considering overtime work to see if the extra hours are worth your time. Overtime hours are taxed at the same rate as regular income, but the higher gross pay might push you into a higher tax bracket for that pay period.

Update your calculations whenever you change your W-4 withholdings, move to a different state, or receive a raise. Tax withholding changes can significantly affect your take-home pay, and it is better to know immediately rather than discover the difference when your next paycheck arrives.

The most common mistake is using your marginal tax rate instead of your effective rate for the federal tax percentage. If you are in the 22% bracket, you do not pay 22% on all income—only on income above the bracket threshold. Your actual withholding rate is typically 10-15% for middle-income earners.

Many people forget that FICA taxes are separate from income taxes and cannot be avoided. Social Security and Medicare taxes add 7.65% to your total deduction rate, regardless of your income tax situation. This is why your take-home pay is always less than you expect if you only calculate income taxes.

Another error is assuming all states tax income equally. Seven states have no state income tax, while others range from 1% to over 10%. Always verify your state's rate and remember that some cities and counties add local income taxes on top of state rates.

Pay stub calculations follow a specific sequence: gross pay calculation, tax withholdings, FICA deductions, then net pay determination. For hourly employees: Gross Pay = (Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × 1.5). For salaried employees: Gross Pay = Annual Salary ÷ Pay Periods Per Year.

Tax deductions use the percentages you specify: Federal Tax = Gross Pay × (Federal Rate ÷ 100), State Tax = Gross Pay × (State Rate ÷ 100). FICA taxes are mandatory: Social Security = Gross Pay × 0.062, Medicare = Gross Pay × 0.0145. The total deduction is the sum of all these amounts.

Net Pay = Gross Pay - Federal Tax - State Tax - Social Security Tax - Medicare Tax. This formula gives you the exact amount that should appear on your direct deposit, assuming no other deductions like health insurance or retirement contributions.

Payroll systems withhold taxes based on annualized projections, not your actual annual income. If you work seasonal or variable hours, this creates over-withholding in high-pay periods and under-withholding in low-pay periods. A $2,000 weekly paycheck gets taxed as if you earn $104,000 annually, even if you only work 20 weeks. This is why seasonal workers often receive large tax refunds.