Gross pay vs net pay

Last updated: 2026-08-14

Gross pay is earnings before payroll taxes and deductions. Net pay is the amount that usually reaches your bank account after withholding, payroll taxes, benefit deductions, and any post-tax deductions.

What usually sits between them

Federal income tax withholding, Social Security, Medicare, supported state or local taxes, retirement contributions, health premiums, and other deductions can all sit between gross pay and net pay. Some deductions reduce taxable wages; others happen after tax.

Why two people with the same salary can have different net pay

Filing status, W-4 entries, state, local tax coverage, benefits, pre-tax deductions, and payroll frequency can change take-home pay even when gross salary is identical.

Use the calculator

The take-home pay calculator shows the difference between gross and estimated net pay. The salary paycheck calculator is the best starting point for an annual salary.