How to accurately estimate take-home pay from a job offer
An offer letter shows gross pay. What hits your bank account is very different. Here's the exact method — and a calculator that does it for two offers side by side.
Updated October 15, 2026 · 7 min read · Numbers computed with our tested calculators and official sources.
Compare your offers right here
Enter each offer's salary, bonus, state, 401(k) match and health premium. The calculator applies 2026 federal brackets, FICA, state tax and NYC tax, then shows which offer is worth more.
Offer A is worth more each year by
$7,856
Take-home −$5,756 for Offer B vs A · counting 401(k) savings and match
Bonuses are usually withheld at a flat 22% federal rate, so the bonus check looks smaller — but your yearly tax ends up the same, as shown here.
Offer A vs Offer B (per year)
| Offer A | Offer B | |
|---|---|---|
| Take-home pay | $84,713 | $78,957 |
| Per month | $7,059 | $6,580 |
| Taxes (all) | $36,287 | $21,444 |
| Total tax rate | 27.9% | 19.5% |
| Your 401(k) savings | $7,200 | $6,600 |
| Employer 401(k) match | $4,800 | $3,300 |
| Health premiums | $1,800 | $3,000 |
| Total value | $96,713 | $88,857 |
Step 1: Start with gross pay — and only guaranteed pay
Use the base salary from the offer. Treat a bonus as expected, not guaranteed unless the letter says it's a sign-on or guaranteed amount. Equity (RSUs, options) is taxed when it vests or you exercise; estimate it separately.
Step 2: Subtract pre-tax deductions
401(k) contributions, health, dental and vision premiums, and HSA or FSA contributions come out before income tax. They lower your taxable income, so each dollar costs you less than a dollar of take-home pay. (401(k) money still pays Social Security and Medicare tax.)
Step 3: Apply federal income tax
Subtract the 2026 standard deduction ($16,100 single, $32,200 married filing jointly), then apply the progressive brackets from 10% to 37%. Your marginal rate is the top bracket you reach; your effective rate is much lower.
Step 4: Subtract FICA
- Social Security: 6.2% of wages up to $184,500 in 2026.
- Medicare: 1.45% of all wages, plus 0.9% above $200,000 (single).
Step 5: Add state and city income tax
Nine states don't tax wages (including Texas, Florida and Washington). Others range up to California's 13.3% top rate. Some states also take a disability or paid-leave payroll tax — California SDI is 1.3% of all wages, Washington charges about 1.4% for Paid Leave and WA Cares, and New York takes 0.432% for Paid Family Leave; New Jersey, Massachusetts, Rhode Island, Connecticut, Oregon, Colorado, Minnesota and Delaware have smaller ones. Our calculators include all of them. New York City adds its own 3.078%–3.876% tax for residents. Use the state where you'll live and work.
Worked example: a $120,000 offer in California
Single filer, 6% to the 401(k), 2026 rules:
| Gross salary | $120,000 |
|---|---|
| 401(k) contribution (6%) | −$7,200 |
| Federal income tax | −$15,986 |
| Social Security (6.2%) | −$7,440 |
| Medicare (1.45%) | −$1,740 |
| California income tax | −$6,261 |
| CA SDI (1.3%) | −$1,560 |
| Take-home pay | $79,813 / yr · $6,651 / mo |
That's 27.5% of gross pay in taxes. The $7,200 in the 401(k) is still your money — just saved for later.
Step 6: Handle the bonus correctly
Employers usually withhold 22% federal tax on bonuses paid separately (37% on bonus pay above $1 million), plus Social Security, Medicare and state tax. That flat rate is withholding, not your final bill: at tax time the bonus is just more ordinary income, and you get back anything over-withheld or owe the difference.
Step 7: Convert to paychecks
Divide yearly take-home by your pay periods: 52 (weekly), 26 (biweekly), 24 (semimonthly) or 12 (monthly). Biweekly pay means two months a year with three paychecks. Our paycheck calculator shows the exact per-check amount.
Comparing two offers: example
Offer A: $120,000 + $10,000 bonus in California, 4% match. Offer B: $110,000 in Texas, 3% match. Both contribute 6% to the 401(k).
| Offer A (CA) | Offer B (TX) | |
|---|---|---|
| Take-home pay (year) | $84,713 | $78,957 |
| Take-home pay (month) | $7,059 | $6,580 |
| Total taxes | $36,287 | $21,444 |
| Your 401(k) savings | $7,200 | $6,600 |
| Employer match | $4,800 | $3,300 |
| Health premiums | $1,800 | $3,000 |
| Total value | $96,713 | $88,857 |
Offer A is worth about $7,856 more a year. Change any number in the calculator above to test your own offers.
What the numbers don't capture
- Cost of living — rent can swing the real difference far more than taxes.
- Equity — vesting schedule, company stage and how you'd sell.
- Time off, remote flexibility, commute and growth.
Moving for the job? See how much tax you'd save or pay by moving states, or look up any salary in our salary after taxes calculator.
Frequently asked questions
How do I calculate take-home pay from a salary offer?+
Start with gross salary, subtract pre-tax deductions (401(k), health premiums, HSA), then subtract federal income tax, Social Security (6.2% up to $184,500 in 2026), Medicare (1.45%), and state and local income tax. Divide by your number of paychecks. Our calculator does every step with 2026 IRS and state rules.
What percentage of my salary will I take home?+
Most US workers keep roughly 70–80% of gross pay after taxes, before retirement savings. In our example, a $120,000 single filer in California keeps about 73% after taxes. It's higher in states with no income tax and lower in high-tax states and cities like New York City.
Why is my bonus taxed so much?+
Employers usually withhold federal tax on bonuses at a flat 22% (37% on the part above $1 million), plus Social Security, Medicare and state tax. That's withholding, not your final tax — any excess comes back when you file.
Should I count the 401(k) match when comparing offers?+
Yes. An employer match is part of your pay — just paid into your retirement account. Only count the match you'd actually get at the contribution rate you plan to use.
Is a higher salary in a high-tax state always better?+
Not always. Compare after-tax pay and then cost of living, especially housing. A smaller salary in a no-income-tax state can leave you with more money each month.