Gross Pay vs Net Pay
Watch: Net vs gross pay: what comes out of your paycheck (1:41)
Updated October 25, 2026 · Sources linked in the text
Gross pay is what you earn before anything is taken out. Net pay is what reaches your bank account after taxes and deductions. On a $60,000 salary paid every two weeks, gross pay is $2,307.69 a paycheck and net pay is about $1,938.07 for a single filer in a state with no income tax.
From gross to net, step by step
| One paycheck on $60,000 a year | No 401(k) | With 5% to a 401(k) |
|---|---|---|
| Gross pay | $2,307.69 | $2,307.69 |
| Pre-tax 401(k) | $0.00 | −$115.38 |
| Federal income tax | −$193.08 | −$179.23 |
| Social Security and Medicare | −$176.54 | −$176.54 |
| Net pay | $1,938.07 | $1,836.54 |
Single filer, paid every two weeks, 2026 Form W-4 with no adjustments, state with no income tax. Worked out with the same engine as our calculators.
Putting $115.38 into a 401(k) lowers net pay by only $101.53, because the contribution comes out before federal income tax. It does not lower Social Security or Medicare.
What comes between gross and net
- Pre-tax deductions: a traditional 401(k), health insurance, an HSA or FSA.
- Taxes: federal income tax, Social Security (6.2%), Medicare (1.45%), state and local income tax, and state programs such as disability insurance.
- After-tax deductions: a Roth 401(k), union dues, garnishments.
Gross and net pay at common salaries
| Salary | Gross every two weeks | Net every two weeks | Taken out |
|---|---|---|---|
| $30,000 | $1,153.85 | $1,010.96 | 12.4% |
| $40,000 | $1,538.46 | $1,320.00 | 14.2% |
| $50,000 | $1,923.08 | $1,629.05 | 15.3% |
| $60,000 | $2,307.69 | $1,938.07 | 16.0% |
| $80,000 | $3,076.92 | $2,504.22 | 18.6% |
| $100,000 | $3,846.15 | $3,045.38 | 20.8% |
| $150,000 | $5,769.23 | $4,376.58 | 24.1% |
Federal income tax, Social Security and Medicare only, single filer, state with no income tax. Your state's figures are on its calculator page, or see how much tax is taken out in every state.
Which number to use
Use gross pay for loan and rental applications, salary comparisons and job offers. Use net pay for your budget, because it is what you can spend. Your pay stub shows both, along with year-to-date totals; see how to read a pay stub. Turn your own gross pay into net pay with the paycheck calculator.
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