Your Take-Home Pay

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If you are living in California and earning a gross annual salary of $72,020, or $6,002 per month, the total amount of taxes and contributions that will be deducted from your salary is $16,442.

This means that your net income, or salary after tax, will be $55,578 per year, $4,632 per month, or $1,069 per week.

To ensure our US take-home pay calculator is as easy to use as possible, we have to make a few assumptions about your personal circumstances, such as that you have no dependents and are not married. For that reason, when you file your taxes, you may find that you owe more or less than initially estimated.

Tax Breakdown

For a gross annual income of $72,020, our US tax calculator projects a tax liability of $1,370 per month, approximately 23% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings in California.

Yearly Monthly Weekly
Gross Income $72,020 $6,002 $1,385
Federal Tax $8,105 $675 $156
State Tax $2,828 $236 $54
Social Security $4,465 $372 $86
Medicare $1,044 $87 $20
Total Tax Due $16,442 $1,370 $316
Take-Home Pay $55,578 $4,632 $1,069

What Is a Good Salary in the US?

One benchmark for determining a "good" salary is your area's median salary. In the United States, the median annual salary is $46,301 before taxes, so if you make more than that, you're already among the top half of earners nation-wide. However, you need to factor in the median earnings and cost of living in your state.

The Bureau of Labor Statistics (BLS) published a 2022 report listing the median hourly wage in each state. Assuming a 40-hour work week, we derived the median annual salaries and compiled them together with the corresponding after-tax figures estimated by our calculator. It's important to note that the BLS report included both part-time and full-time employees, so we can expect the median salary of only full-time workers to be higher.

Source: U.S. Bureau of Labor Statistics, State Occupational Employment and Wage Statistics (May 2022)
State Median Annual Salary Monthly Take-Home Pay
U.S. (aggregate) $46,301 $3,175 (est.)
California $49,733 $3,387
Texas $43,472 $3,068
Florida $40,810 $2,889
New York $52,478 $3,481

Remember, a good salary is one that lets you live comfortably in your area. Depending on where you live in the US, the same salary could afford very different lifestyles — there's a big gap between small-town living and the cost of living in major cities like Chicago or New York.

What Is the Average Salary in the US?

The average annual salary in the United States is $72,020, which is around $4,632 a month after taxes and contributions, depending on where you live. However, extremely high earners tend to bias averages. Likewise, average salaries vary state-by-state, such as California's salaries averaging $83,252 a year compared to Florida's at $63,440.

We derived these annual salary figures from a 2022 BLS report that released the average weekly earnings across the US. Just like before, the BLS included part-time and full-time workers in their data, so the national average salary of just full-time workers would probably be higher than $72,020.

Why was the median salary $46,301 while the average is $72,020? Sky-high incomes lifted the average salary up by over $25,000! That is why median figures tend to represent more closely what most people make. With that disclaimer, you can find the average salaries for the largest US states listed in the table below, or estimate your own salary after tax with our US take-home pay calculator.

Source: U.S. Bureau of Labor Statistics, Wages by State, Third Quarter 2022
State Average Yearly Wage Monthly Salary After Tax
U.S. (aggregate) $72,020 $4,632 (est.)
California $83,252 $5,203
Texas $69,316 $4,709
Florida $63,440 $4,364
New York $83,616 $5,214

What Is the Minimum Wage in the US?

The federal minimum wage in the US is $7.25, which is $15,080 annually, assuming full-time employment and a 40-hour work week. However, each state sets its own minimum hourly wage so long as it exceeds the federal standard, such as California, which enforces a $15.50 minimum wage.

These figures come from the Department of Labor's 2023 Minimum Wage report, from which we've derived yearly salaries and organized them into the following table. Note that minimum wage is still subject to federal and state income tax and payroll taxes. To quickly estimate your take-home pay, you can use our US salary calculator, which takes into account all of these taxes, regardless of which state you live in.

Source: U.S. Department of Labor, Minimum Wage by State (January 2023)
State Minimum Hourly Wage Yearly Salary
U.S. (federal) $7.25 $15,080
California $15.50 $32,240
Texas $7.25 $15,080
Florida $11.00 $22,880
New York $14.20$15.00 $29,536$31,200

How Is Salary Calculated and Paid in the US?

Most employers deduct approximate payroll and income taxes from employee paychecks. Payroll taxes include contributions to Social Security and Medicare, while income tax is withheld according to the W-4 form supplied by the employee. For the 2023 tax year, you must file a return if you're single and earning more than $13,850, or married and jointly filing more than $27,700.

In other words, the Internal Revenue System (IRS), which is the tax authority in the United States, has a pretty good idea about what you owe in taxes. But, come tax day, you still have to file a return, factoring in personal circumstances and claiming deductions. Then, the IRS decides if they've withheld too much of your income in tax, earning a refund, or too little, requiring additional payments.

Taxes Included in This Take-Home Pay Calculator

United States citizens can expect their taxes to include four major expenses: Federal income tax, State tax, Social Security tax, and Medicare tax. Our calculator takes all four of them into account.

  • Federal Income Tax is collected by the federal government and must be paid no matter where you live in the United States. As a progressive tax, individuals with higher incomes can expect to pay higher tax rates. Tax rates are organized in seven brackets ranging from 10% to 37%. To account for inflation, a federal standard deduction is released for each tax year, which lowers your taxable income.
  • State Tax is collected by state governments and is paid in addition to federal tax. There's no universal method for state tax — each state chooses its own rates. As such, state tax can be calculated according to a progressive rate, flat rate, or simply not collected at all.
  • Social Security Tax is paid through payroll taxes to support retirement benefits, benefits for widows and widowers, and disability benefits. As of 2023, employers and employees are subject to a 6.2% rate on earnings capped at $160,200. Additional earnings are not taxed. Self-employed individuals must pay the full 12.4% rate, covering both the employee and employer portions.
  • Medicare Tax is paid through payroll taxes to provide health insurance to people who are 64 years or older, anyone with disabilities, or anyone with terminal diseases. As of 2023, Medicare tax is 2.9%, but it's split between employers and employees, each of whom pays 1.45%. Earnings above $200,000 for single filers are taxed an additional 0.9%, without splitting the surcharge with the employer.

The information provided on this site is intended for informational purposes only.
Please consult a qualified specialist such as an accountant or tax advisor for any major financial decisions.