Take-home pay is your gross pay minus everything withheld: federal income tax, state income tax, Social Security, Medicare and any pre-tax deductions. Here is how to work it out by hand, in six steps — with a real example: a single filer earning $60,000 a year in Pennsylvania, paid biweekly, with no pre-tax deductions.
Step 1 — Annualize your gross pay
Biweekly pay is $60,000 ÷ 26 = $2,307.69 per paycheck. Every step below is worked out for the full year, then divided back into per-paycheck amounts at the end.
Step 2 — Subtract pre-tax deductions
Traditional 401(k) contributions and health-insurance premiums come out before tax. In this example there are none, so the figure stays $60,000.
Step 3 — Subtract the standard deduction
For 2026 the federal standard deduction is $16,100 for single filers ($32,200 married filing jointly). Taxable income is $60,000 − $16,100 = $43,900.
Step 4 — Apply the federal tax brackets
Federal tax is marginal: only the income inside each bracket is taxed at that rate. The first $12,400 is taxed at 10% ($1,240) and the remaining $31,500 at 12% ($3,780) — $5,020 a year, or $193.08 per paycheck.
Step 5 — Add Social Security and Medicare
Social Security is a flat 6.2% of wages up to the $184,500 wage base: $3,720 a year ($143.08 per paycheck). Medicare is a flat 1.45% of all wages: $870 a year ($33.46 per paycheck). Together that is $4,590 a year.
Step 6 — Add state tax, then subtract everything
Pennsylvania charges a flat 3.07% on the full $60,000: $1,842 a year ($70.85 per paycheck). Now subtract it all:
| Line | Per year | Per paycheck |
|---|---|---|
| Gross pay | $60,000.00 | $2,307.69 |
| Federal income tax | $5,020.00 | $193.08 |
| Pennsylvania state tax (3.07%) | $1,842.00 | $70.85 |
| Social Security (6.2%) | $3,720.00 | $143.08 |
| Medicare (1.45%) | $870.00 | $33.46 |
| Take-home pay | $48,548.00 | $1,867.23 |
That is $4,045.67 a month in take-home pay ($48,548 ÷ 12). In a state with no income tax, the same $60,000 keeps $50,390 a year — try the Texas calculator to compare.
How pre-tax deductions change the answer
Put $200 per paycheck into a 401(k) ($5,200 a year) and three things happen: federal tax falls from $5,020 to $4,396 a year (a $624 saving), Social Security and Medicare do not change (401(k) does not reduce FICA), and Pennsylvania state tax does not change either (Pennsylvania taxes 401(k) contributions). Take-home drops to $1,691.23 per paycheck — but $200 of that went into your retirement account, so you actually kept $1,891.23 per paycheck in total.
Common mistakes
- Forgetting state tax. It ranges from 0% to 13.3% — the biggest single reason two identical salaries take home different pay in different states.
- Taxing the whole salary at your top rate. The 12% or 22% bracket applies only to the income inside that bracket, not to your whole salary.
- Skipping the standard deduction. The first $16,100 (single) of income is not taxed at all for federal purposes.
- Forgetting FICA. Social Security and Medicare take 7.65% of most paychecks before income tax is even counted.
Frequently asked questions
Take-home pay (net pay) is what is left of your gross pay after federal income tax, state income tax, Social Security, Medicare and any pre-tax deductions such as 401(k) contributions and health-insurance premiums.
Annualize your gross pay, subtract pre-tax deductions and the standard deduction, apply the federal brackets, add Social Security and Medicare, add state tax, and subtract everything from gross. The worked example on this page follows all six steps — or use the paycheck calculator to do it instantly.
Because taxes and FICA come out first. On a $60,000 salary paid biweekly, $2,307.69 gross becomes $1,867.23 take-home after $193.08 federal tax, $70.85 Pennsylvania state tax, $143.08 Social Security and $33.46 Medicare.
Yes, per paycheck — but the money is still yours, in your retirement account. A $200-per-paycheck 401(k) contribution also cuts your federal tax by $624 a year. Social Security and Medicare do not change, and Pennsylvania still taxes the contribution.