What Is Net Income (Take-Home Pay)?
What is left of your paycheck after taxes, FICA, and any pre-tax deductions are subtracted.
Definition
Net income, also called take-home pay, is the actual money you receive after withholdings: federal income tax, FICA (Social Security + Medicare), state income tax (if any), local tax, plus any pre-tax deductions like 401(k), health insurance premiums, HSA, and FSA. Net pay is what hits your checking account. For most US workers, net is roughly 70-80% of gross, varying by state, election, and household.
Example
$5,000 gross paycheck minus $700 federal tax, $382 FICA, $200 state tax, $300 401(k), $150 health = $3,268 net.