Calculate your new salary and estimated take-home pay after a pay cut using 2026 federal tax brackets, FICA, and optional state tax.
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Salary Cut Formula
New Salary = Current Salary - Pay Cut
Pay Cut % = (Pay Cut / Current Salary) x 100
Take-Home Pay = Gross Salary - Federal Tax - FICA - State Tax - Pre-Tax Deductions
Where:
Current Salary is your annual gross pay before the cut. Pay Cut is the reduction, entered as a dollar amount or as a percent of your current salary. New Salary is your gross pay after the reduction. Federal Tax is the income tax owed on your taxable income, which is your gross pay minus pre-tax deductions minus the standard deduction, using the 2026 brackets for your filing status. FICA is the payroll tax for Social Security, charged at 6.2% on wages up to $184,500, and Medicare, charged at 1.45% on all wages plus 0.9% on wages above $200,000. State Tax is your state income tax, applied only if you enter a rate. Pre-Tax Deductions are amounts such as 401(k) contributions that lower your taxable income.
A pay cut lowers your gross salary, but it does not lower your take-home pay by the same dollar amount. Because income tax is progressive, a lower salary also reduces the tax you owe, so the drop in take-home pay is usually smaller than the drop in gross pay.
2026 Federal Tax Reference
The calculator uses the 2026 federal income tax brackets and standard deduction. The single-filer brackets are shown below.
| Rate | Single Taxable Income |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 |
| 37% | $640,601 or more |
The 2026 standard deduction is subtracted from gross pay before tax is calculated.
| Filing Status | Standard Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
Example Problems
Example 1: You earn $75,000 a year as a single filer and take a $5,000 pay cut. Your new salary is $75,000 - $5,000 = $70,000, a 6.7% cut. Your estimated take-home pay falls from about $61,600 to about $58,100 per year, a drop of roughly $290 per month. The take-home loss is smaller than $5,000 because the lower salary also lowers your federal income tax.
Example 2: You earn $90,000 a year as a single filer and accept a 10% cut. The pay cut is $90,000 x 0.10 = $9,000, so your new salary is $81,000. Enter $90,000, choose Percent, and enter 10 to see your new gross pay and your estimated monthly take-home pay after the cut.
Frequently Asked Questions
Does a pay cut reduce my take-home pay by the full amount of the cut? No. A lower gross salary also lowers the income tax, and above the Social Security wage base the payroll tax, that you owe. Your take-home pay usually falls by less than the gross cut.
Is this calculator exact? It is an estimate. It applies the 2026 federal brackets, the standard deduction, and FICA, plus any state rate and pre-tax percentage you enter. It does not include tax credits, local taxes, itemized deductions, or every type of withholding, so your actual pay stub may differ.
How do I enter a percentage cut? Select the Percent option, then enter the cut as a number. For example, enter 8 for an 8% reduction. The calculator converts it to a dollar amount based on your current salary.