Salary Tax Calculator
US & UK Take-Home Pay

Gross salary is your total earnings before any deductions. Net salary (take-home pay) is what you actually receive after income tax, Social Security, Medicare, and any other deductions like pension contributions are subtracted. The difference between the two is the total amount withheld by your employer and government.

Your marginal tax rate is the rate applied to your last dollar of income — this is the highest bracket you fall into. Your effective tax rate is the average rate you pay across your entire income. Because the US uses a progressive system, most people pay much less than their marginal rate. For example, someone in the 22% bracket typically has an effective rate closer to 12–15%.

In the UK, income tax is collected via PAYE (Pay As You Earn) and uses three main bands: 20% basic rate, 40% higher rate, and 45% additional rate. National Insurance (NI) replaces Social Security. The UK has a personal allowance of £12,570 which is tax-free. Unlike the US, there is no standard deduction system — instead the personal allowance automatically reduces at higher income levels.

Yes — traditional 401(k) contributions (US) and pension contributions (UK) are made pre-tax, which reduces your taxable income and lowers your tax bill. For example, if you earn $75,000 and contribute 6% to a 401(k), your taxable income drops to $70,500. This calculator accounts for pre-tax contributions in its calculations.