Understanding Your Paycheck: What You Actually Take Home
Published June 16, 2026 · 5 min read
A job offer says $100,000. You think: "Great, that's $8,333 a month." Wrong. Your actual take-home is closer to $5,800. Here's exactly where the missing $2,500 goes every month — and how to control some of it.
The Paycheck Anatomy
Example: $100,000 salary, single, no state tax
| Gross monthly pay | $8,333 |
| — Federal income tax | -$1,200 |
| — Social Security (6.2%) | -$517 |
| — Medicare (1.45%) | -$121 |
| — Health insurance | -$200 |
| — 401(k) contribution (6%) | -$500 |
| Net take-home | $5,795 |
That's $2,538 gone every month before you even see your bank account. Understanding these deductions helps you budget realistically.
Breaking Down Each Deduction
Federal Income Tax
The IRS uses progressive tax brackets. For 2026 (projected): first $11,925 at 10%, then 12%, 22%, 24%, 32%, 35%, and 37% at the top. Your marginal rate (highest bracket) is different from your effective rate (what you actually pay). Use our Salary Calculator to see both.
Social Security + Medicare (FICA)
These are fixed: 6.2% for Social Security (up to $176,100 of income) and 1.45% for Medicare (all income). That's 7.65% total before anything else. High earners pay an additional 0.9% Medicare surtax above $200k.
401(k) Contributions
This is the one deduction you control. Contributing to a traditional 401(k) reduces your taxable income. Put in $500/month and you save $110 in taxes (at 22% bracket) while building your retirement.
Quick Reference: Take-Home at Common Salaries
| Gross Salary | Monthly Take-Home* | Hourly Equivalent |
|---|---|---|
| $50,000 | ~$3,400 | $24/hr |
| $75,000 | ~$4,600 | $36/hr |
| $100,000 | ~$5,800 | $48/hr |
| $150,000 | ~$8,200 | $72/hr |
| $200,000 | ~$10,800 | $96/hr |
*Estimates assume single filer, standard deduction, 6% 401(k), no state tax. Use our Salary Calculator for your exact numbers.
Useful Tools
- Salary & Take-Home Pay Calculator — See exactly what you'll earn
- Budget Planner — 50/30/20 allocation based on take-home pay
- 401(k) Calculator — See the tax impact of contributions