Take-home pay after taxes and deductions are subtracted from gross pay.
The gap between gross and net surprises most first-time earners — federal tax, FICA, state tax, and pre-tax deductions (401(k), health premiums) typically remove 20–35% of gross pay.
Example: $85,000 gross salary might net around $63,000–$66,000 depending on state and withholdings.
FAQ
What is Net Pay in simple terms?
The gap between gross and net surprises most first-time earners — federal tax, FICA, state tax, and pre-tax deductions (401(k), health premiums) typically remove 20–35% of gross pay.