Why is my paycheck so low?

Your paycheck is usually low because taxes and deductions come out before you see the money. A $60,000 salary paid every two weeks is $2,307.69 gross, but a single filer in Texas takes home $1,938.08 after federal income tax, Social Security and Medicare. In California, state tax and disability insurance bring it to $1,838.71.

Other common reasons: health insurance and a 401(k) come out of every check. A W-4 with the Step 2 box checked, or extra withholding, raises federal tax. Being paid every two weeks means 26 checks a year, so each one is smaller than half a month of pay. A new year can also bring a higher premium.

Compare your pay stub with the paycheck calculator line by line. The gross pay vs net pay guide explains each line, and why your paycheck went down covers sudden drops. See also net pay and pay period.