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PAY BASICS · 2026

Gross Pay vs Net Pay Explained

Gross pay is your earnings before deductions. Net pay is what remains after taxes and other payroll deductions. The gap changes with your filing details and benefits.

Gross is the starting line

A $60,000 salary is annual gross pay. For hourly work, gross depends on the hours actually paid. A 40-hour week for 52 paid weeks is a planning assumption, not a guarantee.

Net depends on more than income tax

Federal and state income taxes are only part of the difference. Social Security and Medicare also reduce pay. Employer benefits and retirement deductions may lower taxable wages, cash received, or both.

Compare offers consistently

Use the same filing status, state, expected hours and pay frequency for each offer. Then review benefits and unpaid time separately so one nominal salary does not hide a weaker total package.

Use the numbers: Open the paycheck calculator to apply these ideas to a salary or hourly rate. The result is an annualized estimate; your employer’s actual withholding can differ.

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