How to Calculate Your Next Paycheck

How to Calculate Your Next Paycheck
You can calculate your next paycheck by following these steps.

With Pretax Deductions

Step 1

Subtract all approved pretax deductions from your gross amount of pay. The remainder is what you will use to calculate federal and state tax.

Step 2

Calculate federal tax by using the gross after you subtract pretax deductions. Use Internal Revenue Service Publication 15 (see References) to find your federal tax liability. Find your marital status and pay period. You can choose single or married with weekly pay, bi-weekly pay, semi-monthly or monthly. Find the total gross pay and look under the number of allowances you claimed on the W-4 to find your tax.

Step 3

Calculate state tax by using the gross pay after you subtract the pretax deductions. Find the state tax withholding schedule or rate for your state. Each state has a different percentage to use for calculations.

Step 4

Calculate 6.2 percent (.062) of your gross pay -- your pay before any pretax deductions were taken out -- to calculate your Social Security tax.

Step 5

Calculate 1.45 percent (.0145) of your gross pay to determine your Medicare tax.

Step 6

Calculate your final take-home pay per this example: gross pay – pretax deductions – federal – state – Social Security – Medicare – Any garnishments and unions dues (if any) – health insurance premiums (if any) – life insurance premiums (if any) = Net Pay

No Pretax Deductions

Step 1

Calculate federal tax by using the gross pay. Use Publication 15 (see Reference) to find your federal tax liability. Find your marital status and pay period. You can choose single or married with weekly pay, bi-weekly pay, semi-monthly or monthly. Find the total gross pay and look under the number of allowances you claimed on the W-4 to find your tax.

Step 2

Calculate state tax by using the gross pay. Find the state tax withholding schedule or rate for your state. Every state has a different percentage to use for calculations.

Step 3

Calculate your Social Security tax by multiplying your gross pay by .062.

Step 4

Calculate Medicare tax on the gross pay by multiplying your gross pay by .0145.

Step 5

Calculate your net take-home pay per this example: gross pay – federal – state – Social Security – Medicare – Any garnishments and union dues (if any) – health insurance premiums (if any) – life insurance premiums (if any) = Net Pay.