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The Catalyst Project
Your salary isn't what you think. Calculate what you actually earn per hour of life spent.
Gross salary minus federal income tax (marginal brackets), FICA (7.65% capped), state income tax, and pre-tax deductions. Marginal rates apply to income WITHIN each bracket — not the whole salary. The calculator above runs the full lookup including state.
Step 1 — Federal taxable income:
federal_taxable = gross - pre_tax_deductions - standard_deduction
(2024 standard: $14,600 single, $29,200 joint)
Step 2 — Federal income tax (2024 single brackets):
10% on $0 - $11,600
12% on $11,600 - $47,150
22% on $47,150 - $100,525
24% on $100,525 - $191,950
32% on $191,950 - $243,725
35% on $243,725 - $609,350
37% on $609,350+
Step 3 — FICA:
Social Security 6.2% on wages up to $168,600
Medicare 1.45% on all wages
+ 0.9% Medicare surcharge above $200k single
Step 4 — Net (take-home):
net = gross - federal_tax - FICA - state_tax - pre_tax_deductions$100,000 gross, single filer, no state tax, $5k 401k, standard deduction:
federal_taxable = 100,000 - 5,000 (401k) - 14,600 (std)
= $80,400
Federal tax (marginal):
10% x 11,600 = 1,160
12% x (47,150 - 11,600) = 4,266
22% x (80,400 - 47,150) = 7,315
-------
Total federal = $12,741
FICA = 100,000 x 0.0765 = $7,650
Net = 100,000 - 12,741 - 7,650 - 5,000
= $74,609 / year
= ~$2,870 biweekly
Effective federal rate: 12,741 / 100,000 = 12.7%
Marginal federal rate (next $1): 22%Brackets are MARGINAL. Only the income WITHIN each bracket is taxed at that bracket's rate. 2024 single filer: 10% on $0-11,600, 12% on $11,600-47,150, 22% on $47,150-100,525, 24% on $100,525-191,950, 32% on $191,950-243,725, 35% on $243,725-609,350, 37% on $609,350+. Total tax = sum of (bracket_width x bracket_rate) up to your income.
Marginal rate: rate applied to your NEXT dollar earned. If you earn $80k as a single filer, your marginal rate is 22%. Effective rate: total federal tax / total income. At $80k single (2024) total federal tax is ~$12,500; effective rate ~15.6%. A common error: assuming the whole income is taxed at the marginal rate. It isn't — only the income above the previous bracket boundary is.
Employee pays 7.65% total: 6.2% Social Security (on wages up to $168,600 in 2024 — above that cap, no more SS tax), and 1.45% Medicare (no cap). Additional 0.9% Medicare surcharge on wages above $200k (single) or $250k (joint). Self-employed pays both halves = 15.3% total (with deductions). Employer matches the employee portion in W-2 employment.
net = gross - federal_income_tax - FICA - state_income_tax - pre_tax_deductions. Pre-tax deductions (401k, HSA, health insurance) reduce federal taxable income. Example: $100k gross single, no state tax, $5k 401k: federal taxable = 95k. Federal tax ~$15,000, FICA ~$7,650 (no 401k benefit for FICA), state 0. Net ~$77,350. Take-home ~77% of gross is a typical W-2 ballpark.
Varies dramatically. No state income tax: TX, FL, NV, TN, WY, SD, WA, AK, NH (interest/dividends only). Flat tax: CO 4.4%, MA 5%, IL 4.95%. Progressive: CA up to 13.3%, NY up to 10.9%, OR up to 9.9%. Highest combined federal + state marginal rates: CA at 50.3%, NY at 48%, OR at 47%. The calculator above includes most states.
Traditional 401k contributions are pre-tax: they reduce federal taxable income (and most state taxable income) dollar-for-dollar. $10k contribution at a 22% marginal rate = $2,200 immediate federal tax savings, plus any state savings. The contribution still pays FICA (7.65%). Roth 401k uses after-tax dollars but withdraws tax-free in retirement. Match the employer max regardless of choice — that's a 100% return.
Federal income tax (variable), FICA (7.65% flat), state income tax (variable), local/city tax (some areas), health insurance premium, dental/vision, retirement contributions (401k/403b), HSA/FSA, parking, union dues. A $100k salary commonly nets $5,500-6,500/month after all deductions, depending on state and benefit elections. Federal income tax withholding can over-withhold; April refunds aren't bonuses, they're your money returned with no interest.