After-Tax Income Calculator
The After-Tax Income Calculator (US — estimate) shows how much of your gross pay you can reasonably expect to keep after typical federal and state taxes and standard payroll withholdings. It’s useful when you’re building a budget, comparing job offers, moving to a new state, or checking how changes in pay or benefits could affect what actually hits your bank account.
This tool lets us model your take-home pay under different assumptions so you can plan with confidence. The goal is simple: translate headline salary into spendable income and see the impact of choices like location or benefits on your bottom line. Use it to test scenarios, set savings targets that fit reality, and avoid surprises when paychecks start arriving.
Annual net income after estimated federal and state income taxes. We factor in your deduction choice and pre-tax retirement contributions to show a clear before-vs-after picture.
We estimate federal and state income tax on your annual gross. Choose standard or itemized deductions and add pre-tax retirement contributions to see how they change your after-tax income. This is a planning estimate and may not reflect your exact filing.
Federal income tax (est.)
State income tax (est.)
We apply progressive federal brackets with the standard or itemized deduction you choose. State tax is a simple effective-rate estimate—local rates, credits, and phase-outs vary. Turn on FICA to include Social Security and Medicare for wage income.
Results interpretation
How it works
Formulas, assumptions, limitations
Federal taxable income. Gross − pre-tax retirement − your deduction (standard or itemized).
Federal tax. We apply progressive brackets by filing status and sum each tier’s tax.
State estimate. We multiply state-taxable income by a single effective rate you can override. Retirement can optionally lower state taxable income.
FICA (optional). Social Security at 6.2% up to the wage base; Medicare at 1.45% on all wages; Additional Medicare 0.9% above the threshold.
Net income. Net = Gross − Federal − State − (optional FICA). We display retirement separately since it’s not a tax.
Limitations. Does not model credits, AMT, local taxes, phase-outs, or special adjustments. Treat as a planning estimate.
Use cases & examples
Gross $100,000; single; standard deduction; state rate 5%. We reduce taxable income by the standard deduction and retirement, apply federal brackets, and apply the 5% state rate to state taxable income.
Gross $180,000; married; itemized $30,000; retirement $12,000; state rate 4.4%. We compute federal and state estimates and show net after tax.
Gross $85,000; single; standard deduction; no state tax. State tax remains $0 and the effective tax rate reflects federal only.
After-tax income FAQs
Does this tool include payroll taxes?
You can optionally include FICA (Social Security and Medicare) using the toggle. By default we show only federal and state income taxes.
How accurate is the state estimate?
It’s a single effective rate that you can change. Real systems use progressive brackets, local add-ons, and credits.
Do retirement contributions always reduce state taxable income?
Not always. Many states follow federal treatment, but some differ. Use the toggle to match your situation.
Can I model local city or county taxes?
Not in this version. You can approximate them by increasing the state effective rate.
Is AMT or phase-out logic included?
No. This is a streamlined estimator. For filing, rely on your tax software or a professional.
A clear path from gross to after-tax income
Before planning savings goals, debt payoff, or a relocation, we want a realistic picture of take-home income. Our estimator walks through the core pieces—federal brackets, deduction choice, an approximate state rate, and optional FICA—so we can compare scenarios in seconds.
Federal brackets in practice
Progressive brackets mean the last dollars you earn are taxed at higher rates than the first. We compute tax for each bracket slice and add them up. Contributions to pre-tax retirement accounts lower the slice that’s exposed to each bracket, which is why they often deliver a strong tax benefit.
Standard vs itemized deductions
Most filers take the standard deduction. Itemizing can make sense when deductible expenses—mortgage interest, SALT (subject to caps), charitable gifts, and medical expenses above a threshold—exceed the standard. If itemizing is close, try both settings to see the crossover point.
State taxes: effective-rate shortcuts
States use a mix of flat and progressive systems, sometimes with local add-ons. Rather than reproducing each system, we use a single effective rate. It’s simple, tunable, and usually “close enough” for budgeting. If your city has a local tax, bump the percentage slightly to approximate it.
Where FICA fits
FICA funds Social Security and Medicare. For wage income, employers withhold 6.2% Social Security up to the annual wage base and 1.45% Medicare on all wages, plus 0.9% Additional Medicare above a threshold. If you want after-tax net including these payroll taxes, flip on the FICA toggle.
Planning moves that shift after-tax income
- Increase pre-tax retirement to reduce current taxes (mind the annual limits).
- Evaluate Roth vs pre-tax contributions based on current vs expected future rates.
- Consider HSA and FSA options for tax-advantaged medical spending.
- Optimize itemized deductions where possible and track documentation.
- Compare state scenarios before relocating; small rate changes move the long-term plan.
Using the results
Once we see an after-tax number that reflects our situation, we can set a monthly budget, choose a savings rate, and size goals like an emergency fund or down payment. From there, tools like Savings Rate, Savings Interest, and FIRE can connect the dots.
Caveats and fine print
This is an educational estimate. It ignores credits, AMT, local taxes, and nuanced phase-outs. If your return includes business income, equity compensation, or complex deductions, your final numbers will differ. Use this to frame decisions, then verify with official software or a professional.