How take-home pay is calculated
Your take-home pay starts with gross salary. From that, federal income tax is deducted using 2025 marginal brackets, plus FICA taxes (Social Security 6.2% + Medicare 1.45%), plus state income tax at your state's flat or marginal rate.
The effective tax rate is always lower than your marginal (highest) bracket because only income above each threshold is taxed at the higher rate.
2025 federal income tax brackets (single filers)
- 10% on income $0 – $11,925
- 12% on income $11,925 – $48,475
- 22% on income $48,475 – $103,350
- 24% on income $103,350 – $197,300
- 32% on income $197,300 – $250,525
- 35% on income $250,525 – $626,350
- 37% on income over $626,350
What is take-home pay?
Take-home pay is your gross salary minus federal income tax, Social Security (6.2%), Medicare (1.45%), and state income tax.
What is the standard deduction for 2025?
$14,600 for single filers and $29,200 for married filing jointly in 2025.
How is federal income tax calculated?
Using 2025 marginal brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%. Only income above each threshold is taxed at the higher rate.