Home › Guides › Gross vs net pay

Gross vs net pay: what's the difference?

"I got a $60,000 job but my paychecks are way smaller than I expected." The gap between gross and net pay surprises almost everyone. Here is why.

Gross pay

Gross pay is your full, headline salary or wage before any taxes or deductions. It is the number in your job offer and employment contract.

Net pay

Net pay — also called take-home pay — is what actually lands in your bank account after federal income tax, Social Security, Medicare, state tax and any deductions come out.

Why the gap exists

Several things stand between gross and net:

• Federal income tax — based on the progressive 2026 brackets.
• FICA — 6.2% Social Security + 1.45% Medicare.
• State (and sometimes local) tax — varies widely by where you live.
• Deductions — retirement contributions, health insurance and more.

How big is the gap, typically?

For a middle-income worker, take-home pay is often roughly 70–80% of gross, depending heavily on your state and deductions. Someone earning $60,000 might see net pay closer to $46,000–$50,000 a year.

See your own numbers

The easiest way to know your real net pay is to estimate it. Enter your salary, filing status and state in our paycheck calculator to see the full breakdown from gross to net.

General information for 2026, not tax advice.