Annual Net Income Calculator
Pre-tax Deductions
Your Annual Net Income
Gross Annual Income:
Total Deductions:
Total Taxes:
Final Annual Net Income:
Your Money After Taxes: Understanding Net Income
Net income is the money you actually get to take home after taxes and other deductions are taken out of your paycheck. Think of it like this: if you buy a $1 candy bar and pay 10 cents in tax, you spent $1.10 total!
Why This Matters:
- • Helps you make better plans for spending your money
- • Makes it easier to save money for fun things you want
- • Helps you understand your paycheck better
Things That Change Your Take-Home Pay:
Taxes
Money the government takes to help pay for things like roads and schools
Insurance
Money for doctor visits and staying healthy
Savings
Money you set aside for later, like a piggy bank
How Your Paycheck Breaks Down
How to Find Your Yearly Take-Home Pay
The Simple Math:
Yearly Take-Home Pay = Money You Earn - Money Taken Out
Money You Earn Includes:
Regular Pay
Your normal hourly pay or salary
Extra Pay
Money from overtime or bonuses
Other Money
Tips, commissions, or other extras
Money That Gets Taken Out:
Income Tax
Federal and state taxes on your earnings
Social Security
Money for retirement and disability
Medicare
Healthcare for when you're older
Insurance
Health, dental, and vision plans
Real Example: How to Calculate Your Take-Home Pay
Understanding What Gets Taken Out of Your Paycheck
Federal Income Tax
The biggest chunk that goes to the U.S. government. How much you pay depends on how much you make!
State & Local Taxes
Money that goes to your state and city to help pay for local services like parks and schools.
FICA Taxes
Social Security and Medicare taxes that help pay for retirement and healthcare when you're older.
Your Money's Journey Through Deductions
Money You Can Save Before Taxes:
Health Insurance
Medical, dental, and vision insurance to keep you healthy
Retirement Savings
401(k) and other retirement accounts for your future
FSA/HSA
Special accounts for healthcare expenses