How to Read Your Pay Stub

A pay stub packs a lot of numbers into a small space, and the jargon doesn’t help. But every stub follows the same logic: start with gross pay, subtract a series of deductions, and what’s left is your net pay. Here’s what each section means.

Gross pay

Your earnings before any deductions — your salary for the period, plus any overtime, bonus or commission. Stubs usually show both the current period and the year-to-date (YTD) total.

Taxes withheld

• Federal income tax — based on your W-4 and the IRS withholding tables.
• Social Security / “OASDI” — 6.2%, up to the $176,100 wage base (2025).
• Medicare — 1.45% of all wages. Together with Social Security this is your FICA tax.
• State (and sometimes local) income tax — varies by where you live.

Pre-tax deductions

These come out before tax is calculated, lowering your taxable income:

• 401(k) / 403(b) — traditional retirement contributions.
• Health, dental and vision premiums — often via a Section 125 plan.
• HSA / FSA — health savings or flexible spending accounts.

Because they’re pre-tax, a dollar here reduces your take-home by less than a dollar — that’s the appeal of contributing to a 401(k).

Post-tax deductions

Taken after tax — things like Roth 401(k) contributions, wage garnishments, union dues or some insurance. These don’t reduce your taxable income.

Net pay

The bottom line: gross pay minus all taxes and deductions — the amount actually deposited in your account. If your net pay looks lower than expected, it’s usually federal withholding or your state tax doing the work; see how much tax comes out of your paycheck.

Check the math

Want to verify your stub or see what changing your 401(k) would do? Run your salary through the calculator for a clean, itemised breakdown you can compare against your paycheck.