How Our Tax Calculator Works
Understanding the math behind your take-home pay calculation
Our calculator provides accurate take-home pay estimates by applying current 2025 tax rates and deductions. Here's exactly how we calculate your taxes:
Convert to Annual Income
First, we convert your gross pay to an annual amount based on your selected pay frequency:
- Weekly: Multiply by 52
- Bi-weekly: Multiply by 26
- Monthly: Multiply by 12
- Annual: Use as-is
Calculate Federal Income Tax
We apply the 2025 federal tax brackets and standard deduction based on your filing status:
2025 Standard Deductions:
- • Single: $15,000
- • Married Filing Jointly: $30,000
Your taxable income = Annual gross income - Standard deduction. We then apply the progressive tax brackets to calculate your federal tax liability.
Calculate FICA Taxes
FICA taxes are calculated on your gross income with specific wage base limits:
2025 FICA Rates:
- • Social Security: 6.2% on wages up to $176,100
- • Medicare: 1.45% on all wages
- • Additional Medicare: 0.9% on wages over $200,000 (single) or $250,000 (married)
Calculate State Income Tax
State tax calculations vary significantly by state:
No State Tax
States like Florida, Texas, Nevada
Flat Tax Rate
States like Illinois, Pennsylvania
Progressive Rates
States like California, New York
Calculate Take-Home Pay
Finally, we subtract all taxes from your gross income and convert back to your selected pay frequency:
Take-Home Pay = Gross Pay - Federal Tax - FICA Tax - State Tax
Example Calculation
Let's walk through an example for a single filer in California earning $75,000 annually:
Important Notes
- Calculations use standard deductions only - itemized deductions are not included
- Tax credits, retirement contributions, and other deductions are not factored in
- State tax calculations may not include local taxes or specific exemptions
- Results are estimates - consult a tax professional for complex situations