Calculate your net salary after income tax and mandatory deductions. Covers the US, UK, Australia, and Canada.
Federal rates only. This calculator covers federal-level deductions. US state taxes, Canadian provincial taxes, and Scottish income tax rates are not included.
Gross Pay
Total Deductions
Take-Home Pay
Full Breakdown
Deduction
Annual
Monthly
Marginal Tax Rate:
Effective Tax Rate:
The marginal rate is the rate on your last dollar of income. The effective rate is your total income tax as a percentage of gross income.
How the Calculation Works
US (Federal): Your gross salary minus the standard deduction is your taxable income. Federal income tax is calculated using progressive marginal brackets. FICA includes Social Security (6.2% on first $168,600) and Medicare (1.45% on all income, plus 0.9% additional on income over $200,000).
Standard deduction (single 2024): $14,600 | (married): $29,200
UK (2024/25): Income tax applies above the personal allowance of £12,570 at 20% (basic), 40% (higher), and 45% (additional rate). The personal allowance tapers at £1 for every £2 of income over £100,000. National Insurance applies at 8% on earnings between £12,570 and £50,270, and 2% above.
Personal allowance: £12,570 | NI primary threshold: £12,570
Australia (2024/25): Income tax uses progressive brackets starting at 19% above $18,200. The Medicare levy adds 2% on most incomes. The Low Income Tax Offset (LITO) reduces tax by up to $700 for incomes up to $37,500, phasing out by $66,667. Results are approximate as LITO phase-out and other offsets may vary.
Tax-free threshold: $18,200 | Medicare levy: 2% | LITO: up to $700 offset
Canada (2024, Federal only): Federal income tax applies above the basic personal amount of $15,705. The basic personal amount generates a federal tax credit at 15% (= $2,355.75 credit). CPP contributions are 5.95% on earnings between $3,500 and $68,500. EI premiums are 1.66% on earnings up to $63,200. Provincial taxes are not included.
BPA: $15,705 | CPP: 5.95% (up to $68,500) | EI: 1.66% (up to $63,200)
Frequently Asked Questions
US federal income tax uses progressive marginal brackets for 2024: 10% on taxable income up to $11,600, 12% from $11,601-$47,150, 22% from $47,151-$100,525, 24% from $100,526-$191,950, 32% from $191,951-$243,725, 35% from $243,726-$609,350, and 37% above. You subtract the standard deduction ($14,600 single, $29,200 married) from gross income to get taxable income. Most Americans only owe tax at the 10%, 12%, or 22% marginal rates.
FICA (Federal Insurance Contributions Act) covers Social Security and Medicare. In 2024: Social Security is 6.2% on the first $168,600 of wages (max $10,453.20). Medicare is 1.45% on all wages with no cap. An additional 0.9% Medicare tax applies on wages over $200,000 for single filers. Your employer matches these amounts but you only see your share on your payslip. Total FICA for most workers is 7.65% of gross wages.
Key legal strategies to reduce US income tax: (1) Traditional 401(k) contributions reduce taxable income dollar for dollar (up to $23,000 in 2024). (2) HSA contributions are triple-tax-advantaged. (3) Traditional IRA contributions are deductible if eligible (up to $7,000 in 2024). (4) Itemizing deductions if they exceed the standard deduction (mortgage interest, state taxes, charitable donations). (5) Maximising FSA contributions for healthcare and childcare expenses.
Your marginal tax rate is the rate applied to your last dollar of taxable income — if you are in the 22% bracket, you pay 22% on every additional dollar you earn in that range. Your effective tax rate is your total income tax divided by your gross income — this is always lower than the marginal rate because lower portions of your income are taxed at lower rates. For example, a $75,000 single filer in 2024 has a 22% marginal rate but roughly a 13% effective federal rate.
No — this calculator covers federal income tax and FICA only. US state income taxes vary significantly: nine states have no income tax (including Texas, Florida, and Nevada), while California and New York have top marginal rates above 10%. To estimate your full take-home pay, add your state marginal rate to the federal calculation. State taxes can add 3-9% in deductions for residents of high-tax states.
In 2024/25, the personal allowance is £12,570 — income below this is tax-free. Above that: 20% basic rate from £12,571 to £50,270; 40% higher rate from £50,271 to £125,140; 45% additional rate above £125,140. The personal allowance tapers by £1 for every £2 of income above £100,000, reaching zero at £125,140. Scotland has separate income tax rates set by the Scottish Parliament. Income from employment is collected via PAYE (Pay As You Earn) by your employer.
National Insurance (NI) Class 1 employee contributions in 2024/25: 0% on earnings up to £12,570 per year (primary threshold). 8% on earnings from £12,571 to £50,270. 2% on earnings above £50,270 (no upper cap since 2022). The government reduced the main NI rate from 12% to 10% in January 2024, then further to 8% in April 2024 — saving higher earners up to £754 per year. NI contributions fund the State Pension and other benefits.
Key UK tax reduction strategies: (1) Pension contributions — both employee and employer pension contributions reduce taxable income; higher-rate taxpayers can claim an additional 20% tax relief via Self Assessment. (2) Salary sacrifice — trade gross salary for non-cash benefits (pension, cycle-to-work, childcare vouchers) reducing both income tax and NI. (3) Charitable donations via Gift Aid let the charity reclaim basic rate tax, and higher-rate payers can claim the difference. (4) Maximise ISA allowance (£20,000/year) to shelter investment returns tax-free.
The "60% trap" applies to income between £100,000 and £125,140. In this range, every £2 of additional income removes £1 of your £12,570 personal allowance. This means you effectively pay 40% higher rate tax plus lose 40% of a lost allowance — a combined marginal rate of 60%. To escape this trap, higher earners can make pension contributions or Gift Aid donations to bring income back below £100,000, restoring the personal allowance.
UK Student Loan repayments are not included in this calculator as they depend on your specific plan type. Plan 2 (most graduates from 2012 onwards): 9% on income above £27,295. Plan 5 (2023 onwards): 9% on income above £25,000. Plan 1 (pre-2012 graduates in England/Wales): 9% above £24,990. Scottish and Northern Irish graduates have different thresholds. Student loan repayments are collected through PAYE alongside tax and NI.
For the 2024/25 financial year, Australian resident tax rates are: 0% on $0-$18,200 (tax-free threshold); 19% on $18,201-$45,000; 32.5% on $45,001-$120,000; 37% on $120,001-$180,000; 45% on income above $180,000. The Medicare levy of 2% applies to most taxpayers. The Low Income Tax Offset (LITO) reduces tax by up to $700 for incomes up to $37,500. Note: Australian tax was reformed in 2024 (the Stage 3 tax cuts) which adjusted the 19% and 32.5% brackets.
The Medicare levy is 2% of your taxable income and funds Australia's public healthcare system. It applies to most taxpayers earning above approximately $26,000. Low-income earners below $23,226 are exempt; those between $23,226 and $29,033 pay a reduced rate. Medicare Levy Surcharge (MLS) of 1-1.5% applies additionally to higher earners ($93,000+) who do not hold appropriate private hospital insurance — this calculator includes the standard 2% levy only and does not estimate the MLS.
The Low Income Tax Offset (LITO) reduces the income tax payable for lower-earning Australians. In 2024/25: the full $700 offset applies to taxable income up to $37,500; it reduces by 5 cents per dollar from $37,500 to $45,000 (reducing to $325); it further reduces by 1.5 cents per dollar from $45,000 to $66,667, reaching zero. The LITO is applied automatically by the ATO — you do not need to claim it separately. This calculator applies LITO as a deduction from tax payable.
Key Australian tax reduction strategies: (1) Salary sacrifice into superannuation — contributions taxed at 15% in the fund instead of your marginal rate. (2) Claim work-related deductions (home office, tools, training, vehicle use for work). (3) Negative gearing on investment properties allows losses to offset other income. (4) Charitable donations to DGR (Deductible Gift Recipient) organisations are tax deductible. (5) If you have private health insurance, avoid the Medicare Levy Surcharge. Always consult a registered tax agent for personal advice.
HECS-HELP (Higher Education Contribution Scheme) repayments are not included in this calculator as they depend on your outstanding loan balance and income. In 2024/25, compulsory HECS repayments begin at incomes above $51,550, starting at 1% of income and rising to 10% for incomes above $151,201. HECS repayments are collected through the tax system. You can check your HECS balance via the ATO online portal through myGov.
Canadian federal income tax for 2024 uses progressive brackets: 15% on the first $55,867 of taxable income; 20.5% on $55,868-$111,733; 26% on $111,734-$154,906; 29% on $154,907-$220,000; 33% on income above $220,000. The basic personal amount (BPA) of $15,705 generates a 15% non-refundable tax credit of $2,355.75, which reduces your federal tax owing. Provincial income taxes are separate and range from about 5% to 22% depending on province and income level.
Canada Pension Plan (CPP): 5.95% on earnings between $3,500 (basic exemption) and $68,500 (Year Maximum Pensionable Earnings), capped at $3,867.50. CPP2 (second additional contribution): 4% on earnings between $68,500 and $73,200, capped at $188. Employment Insurance (EI): 1.66% on insurable earnings up to $63,200, capped at $1,049.12. Your employer contributes 1.4x your EI premium. CPP and EI contributions generate non-refundable federal tax credits at 15%, partially offsetting their cost.
Key Canadian federal tax reduction strategies: (1) RRSP contributions reduce taxable income dollar for dollar (deduction limit: 18% of prior year earned income, up to $31,560 in 2024). (2) TFSA contributions do not reduce taxable income but shelter all future growth and withdrawals tax-free ($7,000 contribution room in 2024). (3) Claim all eligible credits: charitable donations, tuition, home buyers amount, medical expenses. (4) Income split with a spouse via spousal RRSP. Always consult a tax professional for personalized advice.
No — this calculator shows federal income tax only. Canadian provincial/territorial income taxes are collected separately and range significantly: Ontario adds 5.05-13.16%, British Columbia adds 5.06-20.5%, and Quebec adds 14-25.75% (Quebec does not participate in federal tax collection). Combined federal and provincial marginal rates can reach 50%+ for the highest earners in high-tax provinces. Use the CRA Payroll Deductions Online Calculator for a complete provincial estimate.
The Canada Workers Benefit (CWB) is a refundable tax credit for lower-income workers. In 2024, single individuals can receive up to $1,590, and families up to $2,739. The basic amount phases in at 27 cents per dollar above $3,000, and phases out at 15 cents per dollar above $24,975 (single) or $29,833 (family). The CWB is not included in this calculator as it is a refundable credit claimed on your annual T1 return, not a payroll deduction.