Salary / Take-Home Pay Calculator

Understanding Your Take-Home Pay

The gap between your gross salary and the money that actually arrives in your bank account can be surprisingly large. Income tax, national insurance or social security contributions, pension deductions, and student loan repayments all reduce your take-home pay. Understanding exactly where each pound or dollar goes is the first step to effective financial planning.

In the UK, income tax operates on a progressive system with a personal allowance of 12,570 (tax-free), followed by basic rate (20%), higher rate (40%), and additional rate (45%) bands. National Insurance adds another layer at 8% up to the upper earnings limit and 2% above it. For earners between 100,000 and 125,140, the personal allowance tapers, creating an effective marginal rate of 60% in that band. This calculator handles all of these nuances automatically.

The US federal tax system uses seven brackets ranging from 10% to 37% with a standard deduction of 14,600 for single filers in 2024. FICA contributions add 7.65% (6.2% Social Security up to 168,600 plus 1.45% Medicare with an additional 0.9% above 200,000). State income taxes vary dramatically, from zero in Texas and Florida to over 13% in California for high earners.

The effective tax rate shown in the results is your total deductions divided by gross income, giving you the true percentage of your salary that goes to taxes and contributions. The marginal rate tells you what percentage of your next pound or dollar goes to the government, which is crucial when evaluating pay rises, bonuses, or overtime. These two numbers together give you a complete picture of your tax position.

All calculations run entirely in your browser. No salary data is transmitted, stored, or logged. The results are estimates based on standard tax rules and should not replace professional tax advice for complex situations involving multiple income sources, self-employment, or international taxation.