How to read your result
Net take-home comes from a chain: gross pay minus income tax minus social contributions minus deductions, then divided across your pay periods. In country modes, the results panel lists exactly what that model includes and excludes for your jurisdiction — check that list before assuming a figure covers something it doesn't. The effective deduction rate (total deductions ÷ gross) is the single most useful number for comparing pay structures, since it strips away the noise of different salaries and pay frequencies. If you're negotiating a raise, remember that extra gross is taxed entirely at your highest applicable rate — keeping 55–75% of a raise is normal, not a sign something's wrong. Use Compare Offers to rank two jobs by usable cash rather than headline salary, and Net → Gross when you know the take-home you need and want to work backward to a target salary.
Worked example
Salary 60,000 a year, paid monthly, average income tax 15%, social contributions 7%. Income tax = 60,000 × 15% = 9,000; social = 60,000 × 7% = 4,200. Net annual = 60,000 − 13,200 = 46,800 → 3,900 per month. The effective deduction rate is 22%, so the net-to-gross ratio is 78% — you keep 78 of every 100 earned. Switching to a sourced country model would replace the flat 15%/7% rates with real progressive brackets and contribution caps, which usually moves the result compared to this simple estimate.
Limitations
- Not payroll software: official per-period withholding tables (IRS Pub 15-T, CRA PDOC, ATO schedules, HMRC PAYE codes) are approximated by annual division.
- US state tax is a flat-rate estimate — progressive state brackets, local rules, and credits are not computed.
- Country-specific nuances (India surcharge marginal relief, UK salary-sacrifice NI, Canada Quebec's own tax system, Australia Medicare levy surcharge) are out of scope — see each mode's own included/excluded list.
- Year-end refunds or balances due are not estimated here — see the income tax calculator for refund arithmetic.
This is a paycheck estimate, not a filed computation. For annual tax liability, refunds, and band-by-band detail use the income tax calculator; for consumption taxes see the VAT/GST calculator.
Read the guides
For the difference between gross and net income and a step-by-step worked estimate, see How to Estimate Take-Home Pay Without Confusing Gross and Net Income.
For what a tax estimate captures and when to check official sources instead, see Why Tax Calculators Are Estimates and When to Check Official Sources.