How to Read Your Pay Stub: Every Line Explained
Most people glance at the net pay and ignore the rest. Every line item on your pay stub matters.
Your pay stub contains 20-30 line items that determine how much of your salary you actually take home. Understanding each one ensures you are not being overtaxed, missing deductions, or paying for benefits you do not use.
Gross vs Net Pay
Gross pay is your full salary before deductions. Net pay is what hits your bank account. The difference — typically 25-40% — goes to taxes, retirement, insurance, and other deductions. On a $75,000 salary, you take home approximately $54,000-58,000 depending on state and deductions.
Tax Withholdings
Federal income tax: based on your W-4 filing status and allowances. Social Security: 6.2% on income up to $168,600. Medicare: 1.45% on all income (additional 0.9% above $200,000). State income tax: 0-13.3% depending on your state. If your refund was large last year, you are overwithholding — adjust your W-4 to keep more in each paycheck.