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Free Paycheck Calculator

Calculate your take-home pay after taxes and deductions. Supports USA (all 50 states) and Canada (all provinces). Uses 2024 tax year figures.

Income Details

$

Pre-tax Deductions (per paycheck)

$
$
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Your Paycheck Breakdown

Enter your salary details and click Calculate

Paycheck Calculator Guide

Understanding Your Paycheck

Your take-home pay (net pay) is your gross salary minus taxes and deductions. This calculator accounts for federal and state/provincial income taxes, social security contributions, and pre-tax deductions like retirement savings.

🇺🇸 USA Taxes

  • Federal Income Tax: 10% to 37% based on brackets
  • State Income Tax: 0% to 13.3% (varies by state)
  • Social Security: 6.2% (up to $168,600 in 2024)
  • Medicare: 1.45% (+ 0.9% above $200k)

🇨🇦 Canada Taxes

  • Federal Income Tax: 15% to 33% based on brackets
  • Provincial Tax: 4% to 25.75% (varies by province)
  • CPP: 5.95% (up to $68,500 in 2024)
  • EI: 1.66% (up to $63,200 in 2024)

Tax-Free States (USA)

Nine US states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Living in these states means more take-home pay.

Maximize Your Take-Home Pay

Contribute to 401(k)/RRSP: Pre-tax contributions reduce taxable income
Use HSA/FSA (USA): Tax-free healthcare savings
Pre-tax Benefits: Health insurance, transit, dependent care
Adjust Withholding: Update W-4/TD1 to avoid over-withholding

Gross Pay vs. Net Pay

Gross pay is your total earnings before anything is taken out: the salary figure in your offer letter. Net pay, often called take-home pay, is what actually lands in your bank account after taxes and deductions are subtracted. The gap between the two catches many people off guard: a $60,000 salary rarely means $5,000 in the bank each month. This calculator walks through each subtraction so you can see exactly where the difference goes, from federal income tax down to retirement contributions.

How Federal Withholding Works

Income tax in both the US and Canada is progressive, meaning it is charged in brackets. Only the portion of your income that falls inside a bracket is taxed at that bracket's rate, so moving into a higher bracket never reduces your take-home pay on the income you already earned. That is the difference between your marginal rate (the rate on your next dollar) and your effective rate (the average rate across all your income), both of which this calculator reports. Employers estimate the tax owed on each paycheck and withhold it in advance; you reconcile the estimate against your actual liability when you file your annual return, which is why a refund or a balance due is common.

Pre-tax deductions such as a 401(k) or RRSP contribution, employer health insurance, and HSA or FSA amounts are removed from your gross pay before income tax is calculated. That lowers your taxable income, so every dollar you route into these accounts shields itself from tax today. Payroll taxes work differently: in the US, Social Security applies at 6.2% up to an annual wage cap and Medicare at 1.45% on all wages, while in Canada, CPP and EI are withheld up to their own yearly maximums.

How the Numbers Are Calculated (2024 Tax Year)

  • US federal income tax: pre-tax deductions and the 2024 standard deduction ($14,600 single, $29,200 married filing jointly, $21,900 head of household) are subtracted from gross pay, then the 2024 brackets for your filing status are applied.
  • Social Security: 6.2% of wages up to the 2024 wage base of $168,600. Medicare: 1.45% of all wages, plus the 0.9% Additional Medicare Tax on wages over $200,000 (the employer withholding threshold, which applies whatever your filing status).
  • US state tax: one flat representative rate per state, applied to gross pay minus pre-tax deductions. Real state taxes have their own brackets, deductions and credits, and some cities add local income tax, so this line is the roughest part of the estimate.
  • Canadian federal tax: 2024 federal brackets, minus the basic personal amount credit (up to $15,705 at 15%, reduced for incomes above $173,205).
  • CPP: 5.95% of earnings between the $3,500 basic exemption and the 2024 maximum of $68,500 (the second additional CPP contribution on higher earnings is not included). EI: 1.66% of insurable earnings up to $63,200 (the Quebec rate is lower and QPP replaces CPP in Quebec; this calculator uses the federal figures for every province).
  • Provincial tax: one flat representative rate per province or territory, without provincial credits.

Sources

Estimates only, not tax or financial advice. The figures above are for the 2024 tax year and rates change every year. The calculator does not account for every credit, deduction, local tax, or personal circumstance. Check with your payroll department or a qualified tax professional before making decisions. See our disclaimer.

Frequently Asked Questions

What is the difference between gross pay and net pay?

Gross pay is your total earnings before any deductions: the salary figure in your contract. Net pay, or take-home pay, is what remains after income tax, payroll taxes, and any pre-tax deductions are subtracted. Net pay is the amount actually deposited to your bank account.

What is the difference between my marginal and effective tax rate?

Your marginal rate is the tax rate applied to your next dollar of income, the rate of your highest bracket. Your effective rate is the average rate across all your income, which is always lower because earlier brackets are taxed at lower rates. This calculator shows both.

Do pre-tax deductions really lower my taxes?

Yes. Contributions to a 401(k), RRSP, HSA, FSA, or employer health insurance are subtracted from your gross pay before income tax is calculated, which reduces your taxable income. That means each dollar you contribute is not taxed in the current year.

Why does the calculator ask which state or province I live in?

State and provincial income taxes vary widely, from 0% in states like Texas and Florida to over 13% in others. Your location can change your take-home pay by thousands of dollars a year, so the calculator applies a representative rate for the region you select.

Are these results accurate enough to plan my budget?

They give a ballpark using 2024 federal brackets, payroll tax rates, and simplified state or provincial rates. They are estimates only and do not include every credit, local tax, or personal circumstance, so treat them as guidance rather than an exact paycheck figure.

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