# How can I calculate my after-tax salary? (with photos)

Multiply gross income by current tax rates to determine your after-tax salary.

When calculating after-tax earnings, there are some basic math equations used. The numbers needed to calculate after-tax income include the rates of each tax paid and gross (or pre-tax) income. Once these numbers are verified, the process of calculating after-tax salary is actually quite simple. While actual tax rates and types may change from one location to another, the basic mathematical principles involved in calculating after-tax pay remain constant.

Some tax systems add extra complexity to the after-tax salary calculation process.

For the sake of simplicity, let’s assume the employee has two different taxes being deducted from his payroll check. These taxes are a 5% federal tax and a 3% state tax. We will also assume that the employee earns an annual salary of \$100,000 US Dollars (USD) as gross income.

To calculate after-tax salary, simply multiply gross income (\$100,000) by each of the tax rates. For this example, the employee would pay \$5,000 USD in federal taxes and \$3,000 USD in state taxes. Total deductions for these taxes are added together (\$8,000) and subtracted from gross income to calculate after-tax salary. In this example, the employee will have an after-tax income, or net salary, of \$92,000 USD.

While the basic method of calculating salary after tax revenue is simple, there are variations in tax structures that can make the process a little more complex. For example, some countries use a taxation system that imposes taxes on income above a certain level. For simplicity, suppose the employee is from a country where he is only taxed on his earnings above \$5,000 per year. To calculate the employee’s after-tax income, simply subtract the deductible amount from the gross income and multiply the result by the tax rate.