What is net salary?
Net salary (take-home pay) is your gross salary minus all deductions — income tax, National Insurance (UK) or FICA (US), pension, and student loan repayments. It's what actually reaches your bank account.
How is UK income tax calculated for 2024/25?
The personal allowance is $12,570. Earnings from $12,571–$50,270 are taxed at 20% (basic rate). From $50,271–$125,140 at 40% (higher rate). Above $125,140 at 45%. The personal allowance tapers to zero between $100,000 and $125,140.
What National Insurance do I pay?
For 2024/25, employees pay 8% NI on earnings between $12,570 and $50,270, and 2% on earnings above $50,270. NI thresholds are assessed weekly or monthly depending on your pay cycle.
Does pension reduce my tax and NI?
Yes. Contributions to a salary-sacrifice workplace pension reduce your taxable income and NI-able earnings, so you save on both. A 5% pension on a $35,000 salary saves roughly $350/year in NI alone.
How are US federal taxes calculated?
The US uses a progressive tax bracket system. For 2024, single filers pay 10% up to $11,600, 12% up to $47,150, 22% up to $100,525, 24% up to $191,950, and so on. The standard deduction ($14,600 for single filers) reduces your taxable income first.
What is FICA (Social Security and Medicare)?
FICA comprises Social Security tax (6.2% on earnings up to $168,600) and Medicare tax (1.45% on all earnings, plus an additional 0.9% over $200,000 for single filers). Total FICA for most workers is 7.65%.
Are these calculations 100% accurate?
Our calculator gives a close estimate based on standard tax rules. It doesn't account for every individual circumstance — allowances, additional income sources, employer-specific schemes, or complex tax situations. For definitive figures, consult a tax professional or use HMRC's official tools.