Gross pay is the amount your employer agrees to pay you before anything is taken out. It is the number on your offer letter. Net pay is what reaches your bank account after taxes and deductions. The gap between the two is usually between 15% and 35% of your gross pay.
What sits between gross and net
- Pre-tax deductions such as 401(k) contributions, health insurance premiums and HSA contributions. These reduce your taxable income.
- Federal income tax, charged on taxable income in brackets from 10% to 37%.
- State and local income tax, which ranges from zero in nine states to over 13% at the top in California.
- FICA: 6.2% Social Security and 1.45% Medicare.
- Post-tax deductions such as Roth 401(k) contributions, union dues or wage garnishments.
A worked example
A single filer in Texas earning $60,000 in 2026, with no pre-tax deductions, pays about $5,020 federal income tax, $3,720 Social Security and $870 Medicare. Texas has no state income tax, so take-home pay is about $50,390 a year, or $4,199 a month.
The same salary in California leaves about $47,970, because California adds state income tax and State Disability Insurance.
Why your first paycheck can look smaller
Benefits often start in your first full pay period, and some employers take a full month of premiums from one check. Your first check can also cover a partial period. Compare a full, regular paycheck against the calculator rather than the first one.
To see your own numbers, use the US salary calculator or the UK salary calculator.