Gross vs. Net Income
Gross income is your total pay before anything is taken out; net income — your take-home pay — is what actually lands in your account after taxes, payroll deductions, and benefits. Lenders and budgets use different ones, which is why the same salary can feel like two numbers.
The gap is larger than most people expect. A single filer earning $75,000 in 2026, taking the standard deduction in a state with no income tax, pays about $7,670 in federal tax and $5,738 in FICA — leaving roughly $61,593, or 82% of gross, which is $5,133 a month against a headline of $6,250. Add state tax and health premiums and it falls further. The rule that follows: budget on net, because that is what you can spend, but remember institutions judge you on gross — mortgage debt-to-income ratios, contribution limits and tax brackets are all defined against it. Confusing the two builds a budget that is short by a fifth before the month begins.
Put it to work
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).
Salary to Hourly Calculator
Convert an annual salary to hourly, weekly, biweekly, and monthly pay — adjusted for your real hours and weeks worked.
50/30/20 Budget Calculator
Split your after-tax income the 50/30/20 way — needs, wants, savings — with monthly dollar targets and the yearly savings it produces.