Understanding how to calculate your net salary — the amount you actually take home — is key to budgeting, evaluating job offers, and planning your financial future.

### Step 1: Start with Your Gross Salary
Your gross salary is the total amount before any taxes or deductions. It’s the top-line number you see on your contract or offer letter.

### Step 2: Subtract Mandatory Deductions
These typically include:
- **Federal income tax**
- **State income tax** (depending on where you live)
- **Social Security** (6.2%)
- **Medicare** (1.45%)

In some high-income cases, additional Medicare taxes may apply.

### Step 3: Factor in Voluntary Deductions
These are things you opt into, like:
- Health insurance premiums
- 401(k) contributions
- Commuter benefits or HSA contributions

### Step 4: Understand Pay Frequency
Your paycheck might be weekly, bi-weekly, or monthly. Divide accordingly to plan your cash flow.

---

💡 **Pro Tip:** Use our [Net Salary Calculator](/tools/net-salary-calculator) to instantly see what you’ll take home based on your gross salary and location.


How to Calculate Your Net Salary in 2025 in US