Salary & Tax Estimator
This estimator provides general guidance only and should not be used for tax filing. Consult a tax professional for advice specific to your situation.
How It Works
This salary and tax estimator converts your gross income into an estimate of your take-home pay after federal and state income taxes. It also calculates equivalent amounts at four common pay frequencies — annual, monthly, bi-weekly, and hourly — so you can quickly understand what a salary offer actually means in day-to-day terms.
Important: This is an estimator, not a tax calculator. The result is an approximation meant for general financial planning and job offer comparisons. Your actual tax bill depends on your filing status, deductions, tax credits, investment income, and other factors that this tool does not account for. Always consult a qualified tax professional before making major financial decisions.
To use the estimator, enter your gross annual salary, then adjust the federal and state tax sliders to reflect your expected effective tax rates. The federal slider defaults to a reasonable estimate for a single filer; the state slider defaults to an approximate national average. Adjust both sliders to match your specific situation — or use the IRS tax bracket tables below to find your approximate marginal rate.
The frequency conversion buttons at the top of the results section let you view all the numbers at once as annual, monthly, bi-weekly, or hourly figures. This is particularly useful when comparing a salary job offer to an hourly contract role, or when building a monthly budget from an annual compensation figure.
How Take-Home Pay Is Estimated
The estimator applies a simplified flat-rate tax model to your gross income. This approach uses your effective tax rate (the average rate applied across all your income) rather than marginal bracket-by-bracket calculations:
Net = Gross − (Gross × FederalRate) − (Gross × StateRate)
Simplified as: Net = Gross × (1 − FederalRate − StateRate)
Frequency Divisors
| Frequency | Divisor | Formula |
|---|---|---|
| Annual | 1 | Net ÷ 1 |
| Monthly | 12 | Net ÷ 12 |
| Bi-weekly | 26 | Net ÷ 26 |
| Hourly | 2,080 | Net ÷ 2,080 |
The hourly divisor (2,080) assumes 40 hours/week × 52 weeks/year.
Worked Example
Gross Annual Salary: $65,000
Federal Tax Rate: 22%
State Tax Rate: 5%
Federal Tax = $65,000 × 0.22 = $14,300
State Tax = $65,000 × 0.05 = $3,250
Net Annual = $65,000 − $14,300 − $3,250 = $47,450
Monthly = $47,450 ÷ 12 = $3,954.17
Bi-weekly = $47,450 ÷ 26 = $1,825.00
Hourly = $47,450 ÷ 2,080 = $22.81
Frequently Asked Questions
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Salary & Tax Answers at a Glance
How do you convert an annual salary to an hourly rate?
To convert an annual salary to an hourly rate, divide the annual salary by 2,080 (40 hours per week × 52 weeks per year). For example, a $65,000 annual salary equals approximately $31.25 per hour before taxes. For take-home hourly rate, first subtract estimated federal and state taxes from the annual salary, then divide by 2,080.
What is the average effective federal tax rate?
The average effective federal tax rate for most US workers is between 10% and 22%, depending on income level and filing status. Your effective rate is lower than your marginal bracket rate because the US uses a progressive system — only the income within each bracket is taxed at that bracket's rate, not your entire income.
How much of my salary goes to taxes?
The total tax burden on your salary depends on your income, filing status, and state. A typical W-2 employee earning $65,000 can expect roughly 25%–30% of gross pay to go toward federal income tax, state income tax, Social Security, and Medicare combined. This estimator calculates the federal and state income tax portions — FICA taxes (Social Security at 6.2% and Medicare at 1.45%) are additional.
Which states have no income tax?
Nine US states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these states, set the state tax slider to 0%. New Hampshire and Tennessee tax investment income only, not wages.
How We Calculate This
This estimator uses a simplified effective-rate model to approximate take-home pay after federal and state income taxes:
Net = Gross × (1 − FederalRate − StateRate)
- Gross = Annual salary before any deductions
- FederalRate = Your effective federal income tax rate (not marginal)
- StateRate = Your effective state income tax rate
- Net = Estimated annual take-home pay
Frequency conversions: divide Net by 12 (monthly), 26 (bi-weekly), or 2,080 (hourly, assuming 40 hours/week × 52 weeks/year).
Common Use Cases
- Compare job offers with different salary amounts — see the real take-home difference between a $70,000 and $85,000 offer after federal and state taxes
- Convert an annual salary to an hourly or monthly rate — useful when comparing salaried positions to hourly contract work or freelance rates
- Estimate take-home pay when relocating to a different state — adjust the state tax slider to see how moving from a high-tax state like California to a no-tax state like Texas impacts your paycheck
- Build a monthly budget from your gross salary — use the monthly take-home figure as the starting point for rent, savings, and expense planning