Payroll Calculator
Free payroll calculator. Calculate federal tax, Social Security, Medicare, state tax, and net pay. US-focused payroll calculation for accurate take-home pay estimates.
About This Calculator
Our Payroll Calculator helps employees and employers estimate net pay after all required deductions including federal income tax, Social Security, Medicare, and state tax. Supports multiple pay frequencies and filing statuses.
Understanding payroll deductions is essential for budgeting, tax planning, and ensuring accurate compensation. This calculator provides an estimate based on 2025 US tax rates.
Frequently Asked Questions
What is payroll tax?
Payroll taxes include Social Security (6.2%), Medicare (1.45%), federal income tax, and state income tax. Total can be 25-35% of gross pay.
How to calculate net pay?
Net Pay = Gross Pay - Total Deductions (federal tax, Social Security, Medicare, state tax, voluntary deductions).
What is the Social Security tax rate for 2025?
6.2% for employees on wages up to Rs 1,60,200 ($160,200). Wages above this are not subject to Social Security tax.
What is the Medicare tax rate?
1.45% for employees on all wages with no cap. An additional 0.9% applies above Rs 2,00,000 for single filers.
What is the difference between gross and net pay?
Gross pay is total earnings before deductions. Net pay is take-home pay after all deductions. Net pay is typically 70-80% of gross pay.
How do allowances affect payroll?
More allowances mean less tax withheld and higher net pay but may result in owing taxes. Fewer allowances mean more withholding.