US Net Salary Calculator

Because the US uses a progressive (marginal) tax system. Your marginal rate is the rate applied to the last dollar you earned — but your effective rate is the average across all dollars. For example, a single filer earning $100,000 in 2025 has a top marginal rate of 22%, but their effective federal rate is approximately 16% because the first $11,925 of taxable income was taxed at 10%, the next portion at 12%, and only the remainder at 22%. The standard deduction further reduces effective rates.

The standard deduction is a flat amount the IRS lets you subtract from your gross income before calculating federal tax — with no receipts required. For 2025: $15,000 (single), $30,000 (married filing jointly), $22,500 (head of household). Approximately 87% of Americans take the standard deduction because their itemized deductions (mortgage interest, SALT, charitable giving) don't add up to more than the standard amount. This calculator applies the standard deduction, which is correct for most filers.

Nine states have no broad-based income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire and Tennessee historically taxed investment income (interest/dividends) but not wages — Tennessee eliminated its income tax in 2021, and New Hampshire is phasing out its investment income tax (fully eliminated by 2027). Washington has a capital gains tax on high earners but no regular income tax. These states often compensate with higher sales taxes or property taxes.

The Social Security wage base is the maximum annual earnings subject to the 6.2% Social Security tax. For 2025 it's $176,100, up from $168,600 in 2024. This means if you earn $200,000, you only pay Social Security tax on the first $176,100 ($10,918.20 in SS tax), not on the full $200,000. Income above the wage base is still subject to the 1.45% Medicare tax (with no cap). The wage base is adjusted each year based on national average wage increases.

The Additional Medicare Tax (AMT) is a 0.9% surtax introduced by the Affordable Care Act that applies to wages above certain thresholds: $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. Unlike the standard 1.45% Medicare tax (which employers match), the 0.9% additional tax has no employer match — employees bear the full cost. Employers are required to withhold it once your wages exceed $200,000 in a calendar year, regardless of your filing status.

This calculator uses progressive state income tax brackets for all states that have them, based on 2025 projected rates. For major states (California, New York, Texas, Florida, etc.) the calculations are highly accurate for a single W-2 employee taking the state standard deduction where applicable. Local income taxes (e.g. New York City, Philadelphia) are not included as they vary significantly. For states with complex deduction systems or local taxes, the result should be treated as a close estimate rather than a precise figure. Always verify with your state's revenue department for exact calculations.

Most deductions only reduce your federal income tax — FICA (Social Security and Medicare) is calculated on gross wages and most deductions don't affect it. However, Section 125 "cafeteria plan" contributions are the main exception: contributions to employer-sponsored FSAs (Flexible Spending Accounts), health insurance premiums paid through a cafeteria plan, and dependent care FSAs all reduce the wages subject to FICA. Traditional 401(k) contributions reduce income tax but not FICA — Social Security and Medicare are still calculated on gross wages before the 401(k) deduction.

In the vast majority of cases, Married Filing Jointly (MFJ) results in a lower total tax bill. MFJ provides a standard deduction of $30,000 (vs. $15,000 each for MFS), wider tax brackets, and access to credits (Child Tax Credit, Earned Income Credit, Education Credits) that are reduced or eliminated when filing separately. Married Filing Separately may be beneficial in very specific situations: when one spouse has significant medical expenses (subject to the 7.5% AGI floor), student loan income-driven repayment plan calculations, or when spouses want to keep finances separate for liability reasons. Consult a tax professional if you're unsure which is better for your situation.