As a percentage of your gross income, what is your net income ?

[Like2Plan]

This question was inspired by another thread. As a percentage of your gross income, what is your net income? (I've attached a poll for those who would prefer to respond anonymously.)

Take net income (that's the amount is actually deposited into your account on payday. ) and divide by gross income and multiply by 100.

Since we just closed out another year, I used my annual totals for 2009.

(I have a lot of deductions from my paycheck! Maybe everyone else does, too... )

My net pay was 40% of gross for 2009.

[MonkeyMama]

86%.

I don't have any deductions but for FICA, SDI, and very little Fed/State withholding (Extremely low tax bracket). I work for a small business so no benefits/deductions (like insurance or 401k). OF course - all my insurance and retirement comes out of my net, then.

[reallyprettyhappy]

SO, you're looking for:

gross pay minus
Fed taxes
State taxes
FICA taxes
401k cont.
HSA cont.
FSA cont.
med ins premium
=
net? Just that quick and dirty? mine is 75% right this month. I'll have to take a closer look for annual though

[Joan.of.the.Arch]

I'm curious about your curiosity! What could this help you understand?

[Mjenn]

I'm quite interested in this as we currently live in Europe and have been weighing the benefits/negs of a return to the US. Right now it doesn't seem to make much financial sense, but we would like to plan to make it feasible in the future.

We live in a tax-giant land, but since everyone files single, both hubby and I end up netting about 75% of our income.

Withheld are:
local tax (no fed tax since we earn under the limit individually)
pension contribution
unemployment insurance

This also includes med care, and other social services.

[Like2Plan]

I'm curious about your curiosity! What could this help you understand?

In the thread that inspired this question, there was a brief discussion about net vs gross. I was curious as to how big a range this might encompass....

[Slug]

My net is 59% of my gross. I think this may be low, but I max out 401k, max out dependent FSA, participate in HSA, am the sole source of family health and dental insurance, and have additional life insurance and legal aid all through work. And the government rapes me...

[graceful]

My net is 59% of my gross. I think this may be low, but I max out 401k, max out dependent FSA, participate in HSA, am the sole source of family health and dental insurance, and have additional life insurance and legal aid all through work. And the government rapes me...

DH's net is 59.9%. I chose 60% for the poll and he too maxes out the 401K, participates in a FSA, has deductions for transportation, etc.

I make a lot less so I didn't even really count my income. But my net, what there is of it, is 79%. No other deductions except taxes.

[kork13]

~81% for me.
- 10.5% for Fed Taxes/SS/Medicare
- 6.5% to TSP (tax-deferred retirement)
- .5% for life insurance
- 1.5% to CFC (charity).

However, I don't think net tells very much of a person's financial story, it's just a matter of what you do or don't have deducted from your pay. There's still Roth savings, loan payment, other charity donations, non-retirement savings, and so on that I could easily have deducted directly from my paycheck, but I don't.

If I were to have everything deducted from my pay that I could, I would only get 20% of my gross pay right now. This is why I do all of my finances based on gross pay.

[Like2Plan]

~81% for me.
- 10.5% for Fed Taxes/SS/Medicare
- 6.5% to TSP (tax-deferred retirement)
- .5% for life insurance
- 1.5% to CFC (charity).

However, I don't think net tells very much of a person's financial story, it's just a matter of what you do or don't have deducted from your pay. There's still Roth savings, loan payment, other charity donations, non-retirement savings, and so on that I could easily have deducted directly from my paycheck, but I don't.

If I were to have everything deducted from my pay that I could, I would only get 20% of my gross pay right now. This is why I do all of my finances based on gross pay.

Yes--good points. Some of the deductions are optional and while others are not -like Medicare/ss & taxes.. So, your results could be significantly different depending on what you elections are for the optional things...

[disneysteve]

Since I think I'm the one who prompted this thread, I should join in. I just checked and based on our last paychecks of 2009, our net works out to 67% of gross. As kork13 points out, net really doesn't mean much of anything, which is why I said in the other thread that you really should figure everything based on gross. For example, I'm one of the 50% of Americans who doesn't have a 401k so my retirement savings happens after I get my pay, not before. If I had a 401k, my net would be a lot smaller but I'd still be saving just as much, if not more. Just looking at net isn't of any particular significance.

[am_vanquish]

Direct Deposit Amount / Gross Pay = 52.54%

Deductions Include:
Approx. 22% total taxes
Approx. 9% for med. insurance
15% for Employee Stock Purchase
6% for 401k

[Like2Plan]

For example, I'm one of the 50% of Americans who doesn't have a 401k so my retirement savings happens after I get my pay, not before. If I had a 401k, my net would be a lot smaller but I'd still be saving just as much, if not more. Just looking at net isn't of any particular significance.

I agree. I am one of the other 50% of Americans who does have a 401K --which is partially responsible for my paltry 40% net.

[LivingAlmostLarge]

We;re at 40% of net too.