Salary Calculator US

Tax Year: 2024 – 2025

If you live in California and earn a gross annual salary of $69,368, or $5,781 per month, your monthly take-home pay will be $4,537. This results in an effective tax rate of 22%, as estimated by our US salary calculator.

The table below shows how your monthly take-home pay varies across different states based on the gross salary you entered. Your selected state is highlighted for easier comparison.

The following chart outlines your earnings relative to the national average salary and minimum wage in the US.

Please note that the national figures assume full-time employment for the entire year, while your salary is calculated according to the settings you selected.

One benchmark for determining a "good" salary is your area's median salary. In the United States, the median annual salary is $48,069 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 average annual salary in the United States is $69,368, which is around $4,537 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 $83,876 a year compared to Florida's at $63,336.

Why was the median salary $48,069 while the average is $69,368? Sky-high incomes lifted the average salary up by over $21,000! That is why median figures tend to represent more closely what most people make.

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 $16.00 minimum wage.

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 2024 tax year, you must file a return if you're single and earning more than $14,600, or married and jointly filing more than $29,200.

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.

• 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%.
• 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.
• 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.