Take-Home Pay Calculator

Frequently asked questions

What is the difference between gross pay and net pay?

Gross pay is your salary before any deductions — the number in your employment contract. Net pay (or take-home pay) is what lands in your bank account after income tax, National Insurance (UK), Social Security and Medicare (US), and any other deductions are taken out.

How is federal income tax calculated in the US?

The US uses a progressive bracket system. First, your standard deduction ($16,100 for single filers in 2026) is subtracted from your gross income to give your taxable income. Tax is then applied at increasing rates — 10% on the first slice, 12% on the next, up to 37% on income above $640,600 — but only the income within each bracket is taxed at that bracket's rate. This calculator applies all seven federal brackets automatically.

What is Social Security tax and is there a limit?

Social Security tax is 6.2% of your wages, paid by the employee. It only applies up to the Social Security wage base ($184,500 in 2026) — income above that cap is not subject to Social Security tax. Medicare tax (1.45%) has no cap, and an additional 0.9% applies to wages above $200,000 for single filers.

Does this calculator include state income tax?

No — state and local income taxes vary significantly by location and are not included. This calculator covers federal income tax, Social Security, and Medicare only. To find your state's rate, check your state tax authority's website and add the state tax to your deductions.

What does married filing jointly mean for my taxes?

Married Filing Jointly (MFJ) combines both spouses' income on one return. The MFJ tax brackets are wider than single brackets — for example, the 10% bracket covers income up to $24,800 MFJ versus $12,400 single — meaning a lower overall tax bill in most cases. The standard deduction is also doubled ($32,200 MFJ vs $16,100 single in 2026).

What is the Personal Allowance in the UK?

The Personal Allowance is the amount of income you can earn each year without paying income tax. For 2026–27 it is £12,570. If your income is above £100,000, your Personal Allowance is reduced by £1 for every £2 you earn over that threshold — it reaches zero at £125,140.

How much National Insurance do I pay in the UK?

Employees pay National Insurance on earnings above the Primary Threshold (£12,570 per year in 2026–27). The rate is 8% on earnings between £12,570 and £50,270 (the Upper Earnings Limit), then 2% on anything above that. Earnings below £12,570 attract no NI.

Does Scotland have different income tax rates?

Yes — Scottish taxpayers pay income tax at different rates and bands set by the Scottish Parliament. This calculator uses England, Wales, and Northern Ireland rates only. Visit mygov.scot for a Scotland-specific calculation.

How do I convert an annual salary to monthly take-home pay?

Divide your annual net pay by 12. For example, if your annual take-home is £36,000, your monthly net pay is £3,000. This calculator shows both figures automatically once you enter your gross salary.

What is an effective tax rate?

Your effective tax rate is your total tax and deductions divided by your gross income. It is always lower than your marginal rate (the rate on your last pound or dollar earned) because only the income within each bracket is taxed at that bracket's rate. This calculator displays your effective rate beneath the results.

Can I use this in my own application?

Yes — every calculator on Stupidly Clever has a matching REST API and MCP tool that runs the same underlying logic.