ClearCalc

How it works

The estimate is built in four steps, starting from your hourly wage. First, gross pay: your wage × your regular hours, plus any overtime hours paid at 1.5× your wage, gives a weekly amount; multiplying by 52 weeks gives annual gross pay. Second, FICA taxes are taken off the top at 7.65% of gross — that is 6.2% for Social Security plus 1.45% for Medicare, withheld from every check.

Third comes federal income tax. The calculator first subtracts the 2025 standard deduction for a single filer, $15,750, from your gross pay. Whatever is left is taxed through the 2025 single-filer brackets in slices: 10% on the first $11,925 of taxable income, 12% on the slice up to $48,475, 22% up to $103,350, and so on. Because only the top slice is taxed at your highest rate, your average federal rate ends up well below that top bracket. Fourth, state tax is applied as the flat percentage you enter, figured on your full gross pay. Whatever remains after FICA, federal, and state tax is your estimated take-home, also shown per biweekly paycheck (annual net ÷ 26).

The worked example uses the defaults above: $20 an hour, 40 hours a week, no overtime, and a 4% state rate. Annual gross pay is $41,600.00. FICA takes $3,182.40, federal income tax takes $2,863.50, and state tax takes $1,664.00, leaving estimated take-home pay of $33,890.10 a year — about $1,303.47 per biweekly check.

Remember this is a simplified model: it assumes the same hours every week and does not include things like 401(k) contributions, health insurance premiums, or local taxes, so your real check will differ somewhat.

Frequently asked questions

Why is my real paycheck different from my salary divided by 52?
A few reasons. Most hourly workers are paid biweekly — 26 checks a year, not 52 — and two of those months contain three paychecks. On top of taxes, real checks often subtract pre-tax items like health insurance premiums and 401(k) contributions, and your W-4 withholding settings can make each check higher or lower than the "true" tax, with the difference settled when you file your return.

What is FICA?
FICA is the payroll tax that funds Social Security and Medicare. Employees pay 7.65% of gross pay — 6.2% for Social Security (up to an annual wage cap) and 1.45% for Medicare — and your employer pays a matching 7.65% on top. Unlike income tax, it applies from the first dollar you earn, with no standard deduction.

How is overtime pay treated?
Under federal law, most hourly (non-exempt) workers must be paid at least 1.5× their regular rate for hours over 40 in a week, and this calculator uses that rate. Overtime pay is taxed as ordinary income just like regular pay — but because withholding is calculated as if every check were that big, an overtime-heavy check can have tax withheld at a higher effective clip and then balance out at filing time.

Is the state tax figure exact?
No — it is a flat percentage of your gross pay that you choose, which keeps the estimate simple. Real state taxes vary widely: some states use graduated brackets with their own deductions and credits, some have local income taxes too, and a few have no income tax at all. Look up your state's typical effective rate and enter that for a closer estimate.

Is this tax advice?
No. ClearCalc provides estimates for education only, using simplified 2025 single-filer assumptions. Your actual tax depends on your filing status, deductions, credits, and full financial picture. For decisions that matter, check your pay stub, the IRS withholding estimator, or a qualified tax professional.