Income & Paychecks
Understand how your income, salary, wages, paycheck deductions, taxes, and take-home pay fit together with practical guides and useful calculators.
See how much of your paycheck you actually take home
Your salary or hourly rate is only the starting point. Taxes, deductions, and other withholdings can change the amount that reaches your bank account.
Calculate Your PaycheckUnderstand the basics of income
Start with the income concepts that appear on paychecks, tax forms, and everyday financial decisions.
What Is Gross Income?
Learn what gross income means, what can be included, and how it differs from the amount you actually receive.
What Is Net Income?
Understand net income and how taxes, deductions, and other expenses can affect what remains.
Gross Pay vs. Net Pay
See the difference between the amount you earn before deductions and the amount you take home.
What Is Take-Home Pay?
Learn why your take-home pay can be lower than your salary or advertised hourly rate.
Salary vs. Hourly Pay
Compare salaried and hourly compensation, including how pay can vary by schedule and overtime.
What Is Taxable Income?
Learn how taxable income differs from gross income and why deductions can matter.
Popular income guides
Practical explanations for common income, payroll, and employment questions.
What counts as income?
Income can come from more than a regular paycheck. Depending on your situation, it may include wages, salary, bonuses, commissions, tips, self-employment earnings, interest, dividends, rental income, and other sources.
The way income is reported can also differ depending on how you earn it. Employees commonly receive information on forms such as a W-2, while independent contractors and other self-employed workers may receive 1099 forms.
It is important to distinguish between gross income, adjusted gross income, taxable income, and the amount deposited into your bank account. These terms can describe different stages of the income and tax calculation.
Why understanding your income matters
Knowing your actual income can make everyday financial decisions easier. Your gross salary may help you compare job offers, while your take-home pay is often more useful when planning monthly spending.
Budgeting
A household budget generally needs to account for the money you actually have available after taxes and other deductions.
Comparing job offers
Two jobs with similar salaries can produce different take-home amounts because benefits, retirement contributions, taxes, and other deductions may vary.
Understanding your paycheck
Learning the difference between gross pay, taxable wages, deductions, and net pay can make your paystub easier to understand.
Income & paycheck FAQ
Quick answers to common questions about income and paychecks.
What is gross income?
Gross income generally refers to income before certain deductions or expenses. For an employee, gross pay is the amount earned before payroll deductions such as taxes and employee benefit contributions.
What is net income?
Net income generally refers to the amount remaining after applicable deductions or expenses. For employees, the amount received in a paycheck is often called net pay or take-home pay.
Why is my take-home pay lower than my salary?
Your salary is generally a gross amount. Payroll taxes, federal and state withholding, benefit contributions, retirement contributions, and other deductions can reduce the amount you receive.
Is gross income the same as taxable income?
No. Gross income and taxable income can be different. Taxable income is generally determined after applying applicable adjustments and deductions under the tax rules that apply to your situation.
Is salary the same as take-home pay?
No. Salary usually describes your gross compensation, while take-home pay refers to what remains after applicable taxes and deductions are withheld.
What is the difference between a W-2 and a 1099?
A W-2 is commonly used to report wages paid to employees. Various 1099 forms are used to report certain types of nonemployee compensation and other income.
Want to estimate your take-home pay?
Use the PaycheckMint calculator to estimate your paycheck after taxes and deductions.
Open Paycheck Calculator