Learn the exact formula to calculate net pay from gross pay. Includes 2026 tax brackets, FICA rates, and real examples for hourly and salaried employees.
Understanding the difference between your gross pay and net pay (take-home pay) is essential for budgeting. Here's exactly how to calculate what ends up in your bank account.
Let's break down each component.
Hourly employees: Gross Pay = (Regular Hours × Hourly Rate) + (Overtime Hours × OT Rate)
Published by the BestPaystubGen Editorial Team, covering paystubs, payroll compliance, federal and state taxes, W-2 forms, 1099 contractors, FICA, gross vs net pay, and IRS regulations updated for 2026.
This paystub generator is a simulation/mockup tool for personal record-keeping and verification purposes only.