US pay guide

Why a US take-home pay estimate can differ from your payslip

A useful salary estimate starts with federal tax and FICA, but your actual US payslip can contain several additional layers.

In short

Federal income tax, Social Security and Medicare are only the baseline. State, city, benefit and retirement deductions can change the final amount paid into your bank account.

Federal deductions

Most employees pay federal income tax plus Social Security and Medicare. Federal withholding can differ from final tax liability because it is affected by the information on Form W-4.

State and local deductions

Some states have no individual wage income tax, while others have their own rate, allowances and credits. Some areas also apply city, county or local earned-income tax. In Pennsylvania, for example, local tax can depend on home and work municipality. New York City and Yonkers have separate treatment.

Benefits and retirement

Health insurance, dental cover, a 401(k), HSA, FSA, union dues and wage garnishments may appear on a payslip. Some are pre-tax and some are post-tax, so the impact is not always the same as simply subtracting the contribution.

How to get a closer estimate

  1. Select your state and filing status.
  2. Use state allowance figures from the appropriate state withholding form where the calculator requests them.
  3. Add a known local rate from your payslip using the optional local-tax field.
  4. Compare the result with a recent payslip and account for your benefit deductions.

Use the US take-home pay calculator for a clear estimate. Your employer's payroll calculation and your tax return remain definitive.