myUSFinance

1. Enter your Gross Income — This value represents your gross income
2. Enter your Pay Frequency — This value represents your pay frequency
3. Enter your Filing Status — This value represents your filing status
4. Enter your State Tax Rate (%) — This value represents your state tax rate
5. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
6. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• Gross Pay — Total earnings before deductions (annual salary ÷ pay periods)
• Federal Tax — Income tax withheld based on W-4 elections and progressive brackets
• State Tax — State income tax withholding (0-13.3% depending on state)
• Social Security — 6.2% of gross pay up to $168,600 annual cap (2024)
• Medicare — 1.45% of all gross pay; additional 0.9% above $200,000
• Pre-Tax Deductions — 401(k), traditional IRA, health insurance, HSA, FSA contributions

Worked Example

$85,000 salary, paid biweekly, single, California. Gross: $3,269.23. Federal: -$412. State: -$168. SS: -$202.69. Medicare: -$47.40. 401(k) 6%: -$196.15. Health insurance: -$125. Take-home: $2,118 per paycheck ($55,068/year, 64.8% of gross).

Limitations and Assumptions

Most Americans take home 60-75% of their gross salary after all withholdings and deductions. Pre-tax deductions (401k, health insurance) reduce both your taxable income and FICA taxes (for health insurance through a Section 125 plan). Increasing your 401(k) contribution costs less than you might expect because of the tax savings. Review your W-4 annually to ensure proper withholding — aim for minimal refund or taxes owed.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's calculate taxes for a typical scenario.

Scenario: Michael is a single filer earning $85,000 in gross income. He contributes $6,500 to a traditional 401(k) and claims the standard deduction.

• Gross income: $85,000
• 401(k) contribution: -$6,500
• Adjusted Gross Income: $78,500
• Standard deduction: -$14,600
• Taxable income: $63,900

Using the progressive tax brackets: the first $11,600 is taxed at 10% ($1,160), income from $11,601-$47,150 at 12% ($4,266), and income from $47,151-$63,900 at 22% ($3,685). His total federal tax is approximately $9,111, giving him an effective tax rate of 10.7% — well below his marginal rate of 22%.

If Michael increases his 401(k) contribution to $15,000, his taxable income drops to $55,400, reducing his federal tax to approximately $7,239 — saving $1,872 in taxes while building retirement savings. This calculator helps model these tax-saving strategies.