Net pay
The amount actually deposited after every tax and deduction — also called take-home pay.
Payroll glossary · Updated 2026-08-29
Net pay is what reaches your bank account. It is gross pay minus pre-tax deductions, minus federal, state and local income tax, minus Social Security and Medicare, minus any state disability or paid-leave premium, minus post-tax deductions.
The order matters, because a deduction taken before the tax lines reduces the amount that gets taxed while one taken after does not. Two employees with identical gross pay and identical total deductions can end up with different net pay purely because of where a deduction sits.
For budgeting, net pay is the only figure worth using. Lenders and landlords generally underwrite against gross, which is why an approved mortgage can still feel unaffordable.
Where you will see it
Net pay appears at the bottom of a stub, usually labelled 'net pay', 'take-home' or simply the deposit amount, and it is the only figure on the page that matches what your bank shows. If your employer splits the deposit across accounts, each destination is listed separately underneath.
What it is often confused with
The most useful thing you can do with net pay is convert it to a true monthly figure: divide annual net pay by twelve rather than multiplying one paycheck. On a bi-weekly schedule, 26 paychecks across 12 months is 2.167 a month, so treating it as two understates your income by roughly 8% for ten months of the year and then produces two months that feel like a windfall.
2026 reference figures
The numbers below are the 2026 amounts that most often come up alongside this term. They change every year, so check the tax year before relying on them.
| 2026 figure | Amount |
|---|---|
| Social Security rate and wage base | 6.2% up to $184,500 |
| Medicare rate | 1.45%, no cap |
| Additional Medicare Tax | 0.9% above $200,000 of wages |
| Standard deduction, single | $16,100 |
| Standard deduction, married filing jointly | $32,200 |
| 401(k) elective deferral limit | $24,500 |
| HSA limit, self-only | $4,400 |
| Health FSA limit | $3,400 |
| Supplemental wage withholding rate | 22% up to $1,000,000 |
| W-4 Step 3 credit per qualifying child | $2,200 |
Common questions
Is net pay the same as take-home pay?
Yes, the terms are interchangeable.
Why is my net pay different each period?
Variable hours, overtime, a bonus, a benefit deduction that changed, or crossing an annual wage cap such as the Social Security base.