Take-Home Pay

Take-home pay, also called net pay, is the deposit that actually lands in your account each pay period. It starts from gross pay and subtracts federal income tax withholding, the employee share of FICA (6.2 percent Social Security plus 1.45 percent Medicare), any state or local income tax, and deductions taken before tax such as a traditional 401(k) or health premiums.

The gap between gross and net surprises people most at a first job or after a raise. An $80,000 single salary in 2026 loses $14,890 to federal taxes alone, leaving $65,110, about 81 percent of gross, before any state tax or retirement contributions. Because pre-tax deductions lower your taxable income, contributing to a 401(k) shrinks your paycheck by less than the amount you put in. Run your own numbers in the salary calculator to see each line.