Take-Home Paycheck Calculator

Before-Tax vs. After-Tax Income

In the U.S., the concept of personal income or salary usually references the before-tax amount, called gross pay. For instance, it is the form of income required on mortgage applications, is used to determine tax brackets, and is used when comparing salaries. This is because it is the raw income figure before other factors are applied, such as federal income tax, allowances, or health insurance deductions, all of which vary from person to person. However, in the context of personal finance, the more practical figure is after-tax income (sometimes referred to as disposable income or net income) because it is the figure that is actually disbursed.

Pay Frequency

It is important to make the distinction between bi-weekly and semi-monthly, even though they may seem similar at first glance. For the purposes of this calculator, bi-weekly payments occur every other week (though, in some cases, it can be used to mean twice a week). Also, a bi-weekly payment frequency generates two more paychecks a year (26 compared to 24 for semi-monthly). While a person on a bi-weekly payment schedule will receive two paychecks for ten months out of the year, they will receive three paychecks for the remaining two months.

Filing Status

The most commonly chosen options will be ‘Single,’ ‘Married Filing Jointly,’ and ‘Head of Household.’ It is possible for a single person to claim another filing status. For instance, someone who is ‘Single’ can also file as ‘Head of Household’ or ‘Qualifying Widow’ if the conditions are met. Given these options, it is possible for a taxpayer to evaluate their options and choose the filing status that results in the least taxation.

Deductions

Deductions can lower a person’s tax liability by lowering the total taxable income. The deductions are categorized into three inputs above. For those who do not use itemized deductions, a standard deduction can be used. The standard deduction dollar amount is $15,000 for single households and $30,000 for married couples filing jointly for the tax year 2025. Taxpayers can choose either itemized deductions or the standard deduction, but usually choose whichever results in a higher deduction, and therefore lower tax payable.

2025 Tax Brackets