Net Pay Calculator – Hourly Workers
Gross vs. Net Pay
Net pay is what remains after all deductions from your gross earnings. For hourly workers, understanding the gap between your posted rate and your actual per-hour take-home is essential for budgeting and comparing offers.
Gross pay is your hourly rate multiplied by hours worked. Net pay is what lands in your bank account after all withholdings.
The biggest mandatory deductions are federal income tax (varies by bracket) and FICA taxes (7.65% flat). State income tax, if applicable, adds another layer. Voluntary deductions like 401(k), health insurance, and union dues further reduce net pay.
Use this alongside our hourly to salary calculator to see both your gross annual income and estimated take-home.
Estimated Net Pay at Common Hourly Rates
Based on 40 hours/week, single filer, 2025 federal tax + FICA only.
| Gross Hourly | Gross Annual | Est. Taxes | Net Annual | Net Hourly |
|---|---|---|---|---|
| $15.00 | $31,200 | -$4,093 | $27,108 | $13.03 |
| $20.00 | $41,600 | -$6,136 | $35,464 | $17.05 |
| $25.00 | $52,000 | -$8,180 | $43,821 | $21.07 |
| $30.00 | $62,400 | -$10,224 | $52,177 | $25.09 |
| $35.00 | $72,800 | -$13,199 | $59,601 | $28.65 |
| $40.00 | $83,200 | -$16,283 | $66,917 | $32.17 |
| $50.00 | $104,000 | -$22,450 | $81,550 | $39.21 |
Estimates based on 2025 federal tax brackets for a single filer with standard deduction. State taxes not included.
Common Deductions That Reduce Net Pay
Federal Income Tax: Withheld based on your W-4 elections and tax bracket. Most hourly workers in the $15–$40/hr range are in the 10–12% brackets after the standard deduction.
FICA (Social Security + Medicare): A flat 7.65% deduction from every paycheck. Social Security is 6.2% (capped at $168,600 in 2025) and Medicare is 1.45% (no cap).
State Income Tax: Varies by state. Seven states have no income tax. Others range from ~2% to 13%+. This can meaningfully impact your net hourly rate.
Voluntary Deductions: 401(k)/403(b) contributions, health/dental/vision insurance premiums, HSA/FSA contributions, union dues, and commuter benefits. While these reduce your paycheck, many provide tax advantages or employer matching.
Frequently Asked Questions
Net pay is your gross earnings minus all deductions: federal tax, state tax, FICA, health insurance, retirement contributions, and any other withholdings.
Multiply your hourly rate by hours worked for gross pay. Then subtract estimated taxes (typically 15–25% combined) and any voluntary deductions.
They are usually the same. Net pay = gross pay - all deductions = take-home pay. Some definitions distinguish between pre-tax and post-tax voluntary deductions.
FICA funds Social Security and Medicare. Everyone pays 7.65% (6.2% Social Security + 1.45% Medicare). Your employer pays a matching 7.65%.
Yes. Contributing to a 401(k) or HSA reduces your taxable income. Claiming eligible credits on your W-4 can also adjust withholding.