Methodology: How Our Calculators Work

Last updated: October 28, 2026

Salary after tax

We start with your gross annual salary and subtract:

• Pre-tax 401(k) contribution, if you enter one.
• Federal income tax, using the 2026 federal tax brackets and standard deduction for your filing status.
• Social Security tax at 6.2% up to the 2026 wage base of $184,500.
• Medicare tax at 1.45%, plus the 0.9% additional Medicare tax on wages above $200,000 ($250,000 for married filing jointly in our estimate).
• State income tax. For Arizona, California, Colorado, Georgia, Illinois, Indiana, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania and Virginia we use that state's 2026 brackets, standard deduction and exemptions (head of household uses single filer figures). For other states we use a simplified average rate. Texas, Florida and the other states with no wage income tax are calculated as zero.

Take-home pay is what remains. Monthly, biweekly, weekly and hourly figures divide the annual amount by 12, 26, 52 and 2,080 hours.

Limits of the estimate

We do not include local or city taxes, tax credits, itemized deductions, health insurance premiums, other income, or state-specific brackets and deductions. Your actual paycheck can differ.

Mortgage calculator

Monthly principal and interest use the standard fixed-rate loan formula. We then add property tax (a percentage of the home price), homeowners insurance and any HOA fee you enter. We do not include private mortgage insurance (PMI).

Hourly to salary

Annual pay equals your hourly rate times hours per week times weeks per year. For full time, we use 40 hours and 52 weeks (2,080 hours).

Freelance rate

We divide your after-tax income goal by one minus your tax rate, add business expenses to get the revenue you need, then divide by your billable hours per year.

Sources and updates

Federal figures come from IRS inflation adjustments for tax year 2026 and Social Security Administration wage base data. We review and update these figures every year. If you spot something out of date, please tell us.