Gross Pay vs. Net Pay: What Is the Difference?

"Gross" and "net" are the two numbers on every paycheck — and the gap between them is taxes. Here is the difference in plain English.

Gross pay

Gross pay is your total earnings before anything is taken out — your salary, hourly wages, overtime and bonuses added together.

Net pay (take-home)

Net pay is what actually lands in your account after deductions. The formula is simple: Gross pay − deductions = net pay.

What gets deducted

• Federal income tax (10–37%, based on brackets)
• State income tax (0–13%, depending on your state)
• Social Security (6.2%) and Medicare (1.45%)
• Pre-tax items like 401(k) and health insurance

Most workers take home 70–85% of gross pay. See your exact number with the take-home pay calculator.