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How PayGauge Calculates Take-Home Pay
PayGauge is a browser-based estimation tool. This page explains the calculation model, the sources we use, the assumptions behind common examples, and the limits of an online estimate.
Our calculation model
The calculator starts with gross annual pay or an hourly wage, converts it to the selected pay frequency, applies the selected filing status, and estimates federal income tax, Social Security, Medicare, state income tax where applicable, and user-entered pre-tax deductions. Results are estimates for education and planning; an employer payroll system may use different withholding tables, benefit rules, local taxes, or payroll timing.
Federal income tax
Federal withholding is estimated using the selected filing status, standard-deduction assumptions, progressive federal brackets, and the selected pay frequency. A marginal tax rate applies only to the next dollar in a bracket; it is not the rate applied to every dollar of income.
FICA
Social Security and Medicare are estimated separately. Social Security is subject to the annual wage base and Medicare has additional rules at higher wages. Actual payroll withholding can differ because of year-to-date wages, multiple jobs, exemptions, employer payroll settings, and additional Medicare withholding.
State and local taxes
Each state page uses a state-specific tax model and identifies whether the state has no individual income tax, a flat structure, or graduated brackets. Local taxes, city taxes, special credits, reciprocity, and unusual deductions may not be included unless the page says so. Users should verify state details with the relevant state tax department.
Deductions and pay frequency
401(k), HSA/FSA, health insurance, and other deductions are modeled according to whether the input is treated as pre-tax or post-tax. Weekly, bi-weekly, semi-monthly, monthly, and annual displays are conversions of the estimated annual result and may not match an employer’s exact payroll calendar.
Sources and review
PayGauge uses IRS withholding guidance, IRS publications, Social Security Administration wage-base information, and state tax department materials as reference sources. Tax rules change. We review the model when new official guidance is published and identify the tax year shown on calculator pages.
Last reviewed: October 2026 · Return to PayGauge · Privacy Policy · Terms