US tax overview
US Federal Income Tax Simplified
This US federal income tax simplified guide explains what federal tax is and why state and local taxes can change take home pay beyond a national estimate. You will see what the calculator includes, what it excludes, and why payslips can differ.
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.
- US take home pay can vary by filing status, pre tax benefits, and state or local taxes.
- See the Privacy Policy for handling details.
Open the salary after tax calculator
Estimate US take home pay with a simplified federal view, then save scenarios.
Quick answers: US federal income tax simplified
- Federal income tax is only one piece of US take home pay.
- State and local taxes can change the final number.
- The calculator uses a simplified national model.
- Use scenarios to test gross, frequency, and retirement percent.
What is federal income tax
Federal income tax is a national tax on earnings. It is typically progressive, taxing slices of income at different rates. The calculator uses a simplified federal view to estimate take home pay directionally.
State and local taxes
Some places add state or local tax, others do not. Local rules can include city or county taxes. These differences change take home pay and are not part of the simplified federal-only estimate.
What the calculator includes and excludes
Includes
- Simplified federal income tax estimate.
- Retirement percent effect on taxable base.
- FX snapshot conversion for destination view.
Excludes
- State income tax.
- City or local taxes.
- Detailed credits, deductions, or filing status.
- Employer-specific deductions and benefits.
See calculator limitations for more detail.
Illustrative example
| Item | Illustrative amount |
|---|---|
| Gross salary | $80,000 |
| Retirement percent | 5% |
| Estimated federal tax | $12,000 |
| Estimated net (federal only) | $68,000 |
Illustrative and simplified; state and local taxes could change net in real life.
Why your payslip can differ
- Withholding is an estimate, not final tax.
- Benefits and pre tax deductions change the taxable base.
- Filing status and credits matter.
- Timing and payroll rounding affect payslips.
See why payslips differ from estimates for more context.
How to use this in the calculator
- Set origin as United States.
- Enter gross salary and pay frequency.
- Set retirement percent if needed.
- Review net, breakdown, and effective rate.
- Remember state and local taxes are outside this simplified view.
Run your own estimate in the salary after tax calculator.
Safe handling and privacy
- Do not upload payslips or personal documents.
- Keep scenario names generic.
- Export files carefully and avoid personal identifiers.
- Review the Privacy Policy before sharing.
FAQs
Does this include state income tax?
No. It is a federal-only simplified estimate.
Why does my net differ by state?
States and some local areas add taxes that change take home pay.
Is withholding the same as tax owed?
No. Withholding is a payroll estimate; final tax depends on your full return.
Does retirement percent reduce taxable income here?
Yes, the model reduces taxable base by the retirement percent you enter.
Does the tool include local taxes?
No. City or local taxes are outside this simplified view.
Where can I see the full FAQ?
Visit the salary after tax FAQ.
Why can estimates differ from payslips?
Withholding, benefits, filing status, and timing make payslips differ.
Is this tax advice?
No. This is educational and simplified.
Try the salary after tax calculator
Estimate take home pay, test scenarios, and export a summary.