What Is Take-Home Pay? How to Work Out Yours in 5 Steps
Short answer: take-home pay (net pay) is the money you actually receive after taxes and payroll deductions. For example, a single filer earning $70,000 in Georgia takes home an estimated $55,331 a year in 2026, about $2,128 per biweekly check. That's roughly 79% of the salary on the offer letter.
The figures in this post are estimates from our 2026 tax engine. Below is the method behind them, so you can do the same for any salary.
Gross pay vs take-home pay
- Gross pay is your salary or hourly wage before anything comes out. It's the number in a job ad or offer.
- Take-home pay is what's left after deductions. It's the deposit you see in your bank account.
The gap between the two is made of two kinds of deductions: taxes your employer must withhold, and deductions you choose, like a 401(k) or health plan. The IRS calls the federal ones "employment taxes" and explains them in Topic 751.
The 5-step method
Step 1: Start with gross pay and take out pre-tax deductions
Pre-tax items come out before income tax is figured. The common ones are traditional 401(k) contributions, HSA contributions and health premiums paid through a cafeteria (Section 125) plan.
Step 2: Figure federal income tax
Subtract the standard deduction ($16,100 for single filers in 2026, $32,200 for married filing jointly). Then apply the brackets: 10%, 12%, 22% and so on, each only on the slice of income inside it. The figures come from IRS Rev. Proc. 2025-32.
Step 3: Take out Social Security and Medicare
Social Security is 6.2% of wages, up to a $184,500 wage base in 2026 (per the Social Security Administration). Medicare is 1.45% with no cap. A 401(k) doesn't reduce these two; HSA and Section 125 deductions do.
Step 4: Take out state (and local) income tax
Nine states have no wage income tax. The rest use their own deductions and rates. A few also charge small payroll items, like California's disability insurance. Some cities add their own income tax.
Step 5: Divide by your pay periods
Weekly is 52 checks, biweekly 26, semi-monthly 24 and monthly 12. The yearly total doesn't change. Only the size of each check does.
Worked example: $70,000 in Georgia
Single filer, paid biweekly, no pre-tax deductions:
| Step | Yearly (estimate) | Per biweekly check (estimate) |
|---|---|---|
| Gross pay | $70,000.00 | $2,692.31 |
| Federal income tax | −$6,570.00 | −$252.69 |
| Social Security | −$4,340.00 | −$166.92 |
| Medicare | −$1,015.00 | −$39.04 |
| Georgia income tax | −$2,744.50 | −$105.56 |
| Take-home pay | $55,330.50 | $2,128.10 |
How the two income tax lines were figured:
- Federal: $70,000 − $16,100 = $53,900 taxable. 10% of $12,400 ($1,240) plus 12% of $38,000 ($4,560) plus 22% of the last $3,500 ($770) = $6,570.
- Georgia: the Georgia Department of Revenue lists a flat 4.99% rate and a $15,000 single standard deduction for 2026. $70,000 − $15,000 = $55,000, and 4.99% of that is $2,744.50.
Same salary, with a 5% 401(k)
Now add a $3,500 traditional 401(k) contribution (5% of pay):
- Federal taxable income falls to $50,400, so federal income tax drops to $5,800.
- Georgia tax drops to $2,569.85 in our engine.
- Social Security and Medicare don't change.
- Take-home becomes $52,775.15, or about $2,029.81 per check.
You put $3,500 into retirement, but your take-home only falls by about $2,555. Taxes cover the rest.
Things that make your real check different
- Your W-4. Withholding is an estimate set by the form you gave your employer. You settle the real tax when you file. The IRS Tax Withholding Estimator can check it.
- Benefits. Health, dental and vision premiums can be a large line.
- Bonuses and overtime. These change the gross for that check and can be withheld at different rates.
- Your first check. It's often partial. See our post on why a first paycheck is so low.
Frequently Asked Questions
Is take-home pay the same as net income? On a pay stub, yes: "net pay" means take-home. On a tax return, "net income" or "adjusted gross income" means something different, so it helps to say "take-home" when budgeting.
What percent of my salary will I take home? It depends on salary and state. In our engine, a single filer keeps about 85% of $50,000 in a no-tax state and about 76% of $150,000 in the same state, because higher income reaches higher brackets.
Can I raise my take-home pay without a raise? You can change how much is withheld by updating your W-4, but that only moves money between your paycheck and your refund or tax bill. Lowering pre-tax contributions also raises take-home, at the cost of savings.
Work out your own take-home pay
Enter your salary, state, filing status and deductions in the take-home pay calculator to see the full breakdown.
Sources
- IRS, Topic 751: Social Security and Medicare withholding rates
- IRS, Rev. Proc. 2025-32 (2026 brackets and standard deductions)
- SSA, 2026 COLA fact sheet ($184,500 wage base)
- Georgia Department of Revenue, Important tax updates
- California EDD, Rates and withholding
- IRS, Tax Withholding Estimator
All dollar figures are estimates from the myuscareerpath.com 2026 tax engine (single filer, biweekly = yearly ÷ 26). Percentages in the FAQ are computed from engine results: $42,355 ÷ $50,000 and $113,791 ÷ $150,000.
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