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Glossary Finance

Net pay

Net pay, or take-home pay, is what you receive after taxes and deductions are subtracted from your gross pay.

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In more detail

Typical deductions are income tax, payroll taxes such as Social Security and Medicare (7.65% together for US employees), insurance and retirement contributions. Compare job offers on gross pay but budget with net pay. See How Paychecks and Taxes Work.

Try these tools

Paycheck Calculator

Estimate your take-home pay per paycheck and per year, including federal income tax, Social Security, Medicare.

See also

  • Glossary Marginal tax rate
    The marginal tax rate is the rate applied to the next dollar of income, as opposed to the average rate across all your income.
  • Guide How Paychecks and Taxes Work
    Gross to net pay, marginal versus effective tax rates built slice by slice, self-employment tax, freelance rates, raises, commissions.
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