How to Read Your Paycheck: Every Line Explained
A pay stub looks like a wall of abbreviations, but it follows one simple path: the money you earned, minus things taken out, equals the money you receive. Here is each part in order.
1. Gross pay
Gross pay is what you earned before anything is taken out. For a salaried worker it is your yearly salary divided by the number of pay periods. For an hourly worker it is hours worked times the hourly rate, plus any overtime or bonuses. If you earn $60,000 and are paid every two weeks, gross pay per check is about $2,307.69.
2. Pre-tax deductions
These come out before income tax is figured, so they lower the wages you are taxed on. Common ones are traditional 401(k) contributions, health insurance premiums, and contributions to a Health Savings Account (HSA) or Flexible Spending Account (FSA). Because they reduce taxable income, a $100 pre-tax deduction costs you less than $100 of take-home pay. Read more in our guide on how a 401(k) affects take-home pay.
3. Taxes withheld
Your employer withholds several taxes:
- Federal income tax. Based on your W-4 form, your pay and how often you are paid. It is an estimate of what you will owe, not the final bill.
- Social Security (OASDI). 6.2% of wages up to the yearly wage base. See Social Security and Medicare tax explained.
- Medicare. 1.45% of all wages, with an extra 0.9% on high earners.
- State income tax. Only in states that tax wages. Some states and cities add small payroll charges, such as disability insurance. See states with no income tax.
- Local tax. A few cities and counties add their own income or payroll tax.
4. Post-tax deductions
These are taken after taxes and do not lower your taxable income. Examples include Roth 401(k) contributions, union dues, wage garnishments and some insurance. Because they are taken after tax, they never reduce your tax bill.
5. Net pay
Net pay, also called take-home pay, is what lands in your bank account. It equals gross pay minus all deductions and taxes. For a single filer earning $75,000 in a state with no income tax and no 401(k), our calculator gives about $61,592 a year, or $5,133 a month.
6. Year-to-date (YTD) totals
The YTD column adds up each line since January 1. It is useful for checking that Social Security stops at the wage base, that your 401(k) is on track for the yearly limit, and that totals match the Form W-2 you get after the year ends.
What to check on every stub
- Your hours, pay rate and any overtime are correct.
- Benefits you did not choose are not being deducted.
- Your name, address and state are right, since a wrong state can mean wrong state tax.
- YTD totals grow by the same amount each period (unless you have bonuses or caps).
If something looks wrong, ask your payroll or HR department, ideally in writing.
Last reviewed: October 2026. Figures are for tax year 2026. This guide is general information, not tax, legal or financial advice.
About the author
Hari Nepal, founder and editor of Kbtrim Salary. Hi, I'm Hari Nepal, based in Nepal. I built Kbtrim Salary to make money numbers easier to understand, with free calculators that explain how they work instead of hiding the math. I use published IRS and state tax figures and update them every year. I'm not a tax professional, so the tools give estimates, not advice. If you find a mistake, please email me at harinepal2062@gmail.com. More about this site.