Gross and Net Income
|Net Income||Please enter salary|
Use the salary calculator above to quickly find out how much tax you will need to pay on your income. Simply enter your annual or monthly gross salary to get a breakdown of your taxes and your take-home pay.
- Gross Income
- is the sum of all your earnings before any taxes have been deducted, minus any exemptions.
- Net Income
- is the money you take home after all taxes and contributions have been deducted from your gross salary.
|Social Security Tax|
|Tax due||Please enter salary|
- Tax due
- is the sum of all taxes and contributions that will be deducted from your gross salary.
The deductions used in the above tax calculator assume you are not married and you have no dependants.
Taxation in the US
- Federal Tax
- is a progressive tax, with higher rates being applied to higher income levels. The federal income tax has seven tax brackets which range from 10% to 39.6%. The above calculator assumes you are not married and you have no dependents, so the standard deduction per annum is 6,300 USD, with a personal exemption that can be up to 4,050 USD. The personal exemption amount phases out for taxpayers with higher incomes.
- State Tax
- is a progressive tax in addition to the federal income tax. The tax is imposed at a fixed or graduated rate on taxable income. The tax rates vary by state.
- Social Security Tax
- applies only on the first 118,500 USD that you earn, at a rate of 6.2%. Also known as the Old-Age, Survivors, and Disability Insurance (OASDI), the Social Security tax must be payed by all employees and self-employed earners. The tax goes into funds for: retirement benefits, benefits for widows and widowers, and disability benefits.
- Medicare Tax
- has two tax brackets, 1.45% for the first 200,000 USD earned and 0.9% for the remaining. Medicare provides health insurance for older people (greater than 64 years), people with disabilities and people with terminal diseases.
The information presented here is based on the fiscal regulations in the United States in 2019. Visit irs.gov for more details.
Financial Facts about the US
The average monthly net salary in the United States is around 2 730 USD, with a minimum income of 1 120 USD per month. This places US on the 4th place out of 72 countries in the International Labour Organisation statistics for 2012.
The United States' economy is the largest and one of the most open economies in the world, representing approximately 22% of the gross world product. The US leads the world by having a high productivity of manufactured goods, a well-developed infrastructure, and abundant natural resources. The United States financial market is also the largest and the most influential in the world. This makes the USD (US dollar) to be the most used currency in international transactions.
Over 128 of the world's 500 largest companies are headquartered here, including: Walmart, Exxon Mobil, Chevron, Apple, JP Morgan Chase and many others. Because of its strong economy, the United States has always attracted a high number of immigrants from all over the world. The net migration rate is among the highest in the world.
The US is the 4th largest country in the world with over 50 states, covering a vast part of North America. Washington D.C. is the capital of the United States and other major cities include: New York (a global finance and culture center), Los Angeles (known as the 'Creative Capital of the World', famed for filmmaking), Chicago (renowned for its museums and bold architecture).