Question 1

What is take-home pay?

Accepted Answer

Take-home pay is the net salary you actually receive after federal, state and FICA (Social Security and Medicare) taxes, plus deductions like 401(k) contributions.

Question 2

How is federal income tax calculated in the U.S.?

Accepted Answer

Federal income tax uses a progressive bracket system. For 2025, rates range from 10% to 37% depending on your annual income. Not all your income is taxed at the same rate.

Question 3

What is FICA and why is it deducted from my paycheck?

Accepted Answer

FICA contributions fund Social Security (6.2% up to $176,100) and Medicare (1.45%). They apply to all employees, including immigrants on W-2.

Question 4

Is it worth contributing to a 401(k)?

Accepted Answer

Yes. 401(k) contributions reduce your taxable income today and grow tax-deferred. For 2025, you can contribute up to $23,500 per year.

Question 5

Can I use this calculator as an immigrant?

Accepted Answer

Yes. The calculator applies the same tax code that governs W-2 employees regardless of immigration status. If you are a 1099 contractor, different rules apply.

Take-Home Pay Calculator