Glossary
Salary After Tax Glossary
Quick definitions help you compare outputs without confusion, especially when simplified tax models and FX snapshots are involved. Use this glossary as a fast reference.
Published: December 31, 2025 · Updated: December 31, 2025 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only, not financial or tax advice.
- Examples are illustrative and simplified.
- Results depend on your inputs and assumptions and are not guaranteed.
- See the Privacy Policy for handling details.
Open the salary after tax calculator
Use these terms to read your outputs clearly and compare scenarios with confidence.
Quick answers: salary after tax glossary
- Gross is before tax; net is after.
- Effective rate is overall; marginal rate is the next slice.
- FX snapshot is a point in time conversion rate.
- Scenarios let you compare runs side by side.
Glossary
Gross salary
Income before tax and deductions. In the calculator, you enter gross as the starting point.
Example: gross 60,000 annual.
Net salary
Take home pay after estimated taxes and deductions. The tool outputs this per your frequency selection.
Example: net 42,000 annual (illustrative).
Taxable income
Portion of income subject to tax after applicable deductions or allowances in a model.
Calculator uses a simplified taxable base; details vary by country.
Deductions
Amounts that reduce taxable income. General concept; not all deductions are modeled.
Allowance
Portion of income that may be tax-free under certain systems. Simplified or excluded in the model unless stated.
Credit
Amount that may reduce tax owed. Credits are not fully modeled; estimates remain directional.
Tax bracket
Income range with a specific marginal rate. See the brackets explainer.
Marginal tax rate
Rate applied to the next slice of income. Not the same as your average rate.
Effective tax rate
Total estimated tax divided by total income. Displayed as a summary in the calculator.
Pension percent
User-entered pre-tax contribution proxy in this calculator. It reduces the taxable base in the estimate.
Pay frequency
How often pay is shown (annual, monthly, weekly). The tool annualizes behind the scenes for consistency.
FX rate
Exchange rate used to convert currencies. In the tool, used when showing destination currency views.
FX snapshot
Point-in-time FX rate. Converted results change when FX moves.
Currency conversion
Applying an FX rate to convert net from one currency to another. Different from purchasing power.
Origin country
Country for the gross pay and tax model you select.
Destination country
Country used for displaying converted net in its currency when FX is shown.
Scenario
Saved run with your inputs and outputs. Helps you compare changes without losing a baseline.
Scenario comparison
Looking at two or more saved runs side by side. Change one input at a time for clarity.
Rounding
Adjusting to cents or pennies. Minor rounding differences can appear between estimates and payslips.
Local taxes (state or city)
Additional tax layers beyond national rules. Often not included in the simplified model unless stated.
Assumptions and limitations
Model scope and exclusions. Review the assumptions and limits page.
Mini examples
| Term | Simple example | What to notice |
|---|---|---|
| Gross vs net | Gross 60,000 → Net 42,000 (illustrative) | Net is after estimated taxes and deductions |
| Effective vs marginal | Total tax 12,000 on 60,000 → effective 20%; marginal might be 25% | Effective is average; marginal is the next slice |
| FX snapshot | Net 42,000 USD × 0.80 = 33,600 GBP (snapshot A); at 0.78 = 32,760 GBP | Converted results change as FX moves |
Related links
Privacy and safe handling
- Use generic scenario names; avoid identifiers.
- Handle exports carefully and keep them private.
- Do not share payslips, tax returns, or bank details.
- Review the Privacy Policy for handling details.
FAQs
What is the difference between gross and net?
Gross is before deductions; net is after. The calculator estimates net from the gross you enter.
What is effective tax rate?
Total tax divided by total income. It appears as a summary in your results.
What is marginal tax rate?
The rate on the next slice of income in a bracket system. See the effective vs marginal guide.
What is an FX snapshot?
A point-in-time exchange rate for conversion. Converted outputs change as FX moves.
What does pension percent mean here?
It is a user-entered pre-tax contribution proxy used in the estimate.
Where can I read assumptions and limitations?
See the FAQ and assumptions page.
Use the calculator with these definitions handy
Keep terms straight, compare scenarios clearly, and rerun when FX or inputs change.