tax
Take-Home Pay
Take-home pay is the net amount deposited after all payroll taxes and deductions. It is the practical number to use for monthly budgeting and affordability calculations.
Take-home pay can differ from "net income" if your employer makes pre-tax deductions (401k contributions, HSA, dental/vision insurance). These reduce taxable income further, so they benefit from tax efficiency.
The difference between gross and take-home varies widely by country. A £60,000 salary in the UK takes home roughly £43,000 (28% deducted). A $60,000 US salary takes home roughly $47,500 (21% deducted, federal only).
Put this into practice with our free calculator:
Open calculator →Related terms
- Net Income (Take-Home Pay)
- Net income is your earnings after all taxes and deductions have been removed. It is the amount that actually lands in your bank account — also called take-home pay.
- Gross Income
- Gross income is your total income before any taxes, deductions, or withholdings. It is the starting figure used by lenders for DTI calculations and by tax authorities to determine your tax bracket.
- Effective Tax Rate
- Your effective tax rate is your total tax paid divided by your total income, expressed as a percentage. It is always lower than your marginal rate in a progressive tax system.
Frequently asked questions
What is Take-Home Pay?
Take-home pay is the net amount deposited after all payroll taxes and deductions. It is the practical number to use for monthly budgeting and affordability calculations.