Salary and Compensation Resources

Gross pay is your total earnings before any deductions are taken out. Net pay (or take-home pay) is what you actually receive after deductions for taxes, retirement contributions, health insurance premiums, and other withholdings. Our Take-Home Pay Calculator helps you estimate the difference between your gross and net pay.

Tax brackets work progressively, meaning you don't pay the highest rate on your entire income. Each portion of your income is taxed at the rate for the bracket it falls into. For example, if you're in the 22% tax bracket, only the portion of your income that falls within that bracket is taxed at 22%. Lower portions are taxed at lower rates. This results in your effective tax rate being lower than your highest marginal tax rate.

The best times to negotiate salary are: 1) When receiving a job offer, 2) During performance reviews, 3) When taking on significant new responsibilities, 4) After achieving major successes, and 5) When you have competing offers. Research shows that negotiating your starting salary is particularly important, as future raises are often calculated as a percentage of your current salary.