So, what is a normal take home pay vs gross pay percentage?

aacx97

aacx97

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I just started by first real job after graduating from college (well, started three weeks ago) and after taxes, SS, and my voluntary withholdings (medical insurance, etc) my take home pay is about 66% of my what my gross pay would be.

I was wondering if this about right? What is a normal percentage?
 
That's about right. Keep in mind though, you'll probably get a decent amount back in tax refunds. Still about 20-25% goes to the government depending on your tax bracket.
 
[quote name='aacx97']I just started by first real job after graduating from college (well, started three weeks ago) and after taxes, SS, and my voluntary withholdings (medical insurance, etc) my take home pay is about 66% of my what my gross pay would be.

I was wondering if this about right? What is a normal percentage?[/QUOTE]


obligatory 401K/etc comment.... make sure you put enough to get the maximum company match... if you start early you won't miss it... not to mention that uncle sam will get less of your check.
 
[quote name='Afflicted']obligatory 401K/etc comment.... make sure you put enough to get the maximum company match... if you start early you won't miss it... not to mention that uncle sam will get less of your check.[/QUOTE]

Yeah I made sure to do that. I have the option to do a traditional or roth 401k or a mix of the two. Right now I'm just on the standard 401k but I'm thinking I like the roth system a little better. I might change it, or maybe I'll wait like a year and put whatever salary increase I get into a roth section.
 
[quote name='aacx97']I just started by first real job after graduating from college (well, started three weeks ago) and after taxes, SS, and my voluntary withholdings (medical insurance, etc) my take home pay is about 66% of my what my gross pay would be.

I was wondering if this about right? What is a normal percentage?[/QUOTE]

Yes this is normal. Yes it sucks ass. Mine is currently ~78% because my health insurance is through my husband's job (it's no additional cost to insure your spouse under his plan... weird but I like it) and I have no 401k currently (get that after a year, but I have a Roth I put money into on my own) but that is definitely way above the norm.
 
[quote name='aacx97']Yeah I made sure to do that. I have the option to do a traditional or roth 401k or a mix of the two. Right now I'm just on the standard 401k but I'm thinking I like the roth system a little better. I might change it, or maybe I'll wait like a year and put whatever salary increase I get into a roth section.[/QUOTE]

I'd be wary of a Roth 401k if you plan on being in a higher tax bracket when you retire.

My current after tax (and benefits) take home is 54%. It's all going to depend on how much money you make and what you're having taken out.
 
[quote name='mtxbass1']I'd be wary of a Roth 401k if you plan on being in a higher tax bracket when you retire.

My current after tax (and benefits) take home is 54%. It's all going to depend on how much money you make and what you're having taken out.[/QUOTE]


actually if you plan on being in a higher tax bracket you'd want to use the roth 401K.

I think tho the big key to choosing which to use is... would you rather pay taxes on it today or when you retire.

Of course that also begs the question of... with the current national debt and the addition of more entitlement programs in the years to come... how much more will we be paying in taxes in 30? 40? 50 years?
 
[quote name='mtxbass1']I'd be wary of a Roth 401k if you plan on being in a higher tax bracket when you retire.

My current after tax (and benefits) take home is 54%. It's all going to depend on how much money you make and what you're having taken out.[/QUOTE]

Why is that? I thought that was the whole point. You pay taxes on it now, but when you take it out later, there are no taxes on the principal or the growth. If I'm in a higher bracket by the time I retire, Roth saves me money.
 
Ah, yeah, you're right. I had mixed something up. Again, it all depends on which bracket you're in (and if your employer supports it).
 
[quote name='Afflicted']actually if you plan on being in a higher tax bracket you'd want to use the roth 401K. [/QUOTE]

wat.

I know you already admitted your mistake but... wat. :lol:
 
Considering the government takes about 28% in taxes (depending on state and whatnot), that seems about right. Although, it doesn't seem like you're putting enough away for retirement. Get on that now. Never too early.
 
My ratio: 0.7291612903225806

I did the max the company will match on 401k.. and I can't remember if more or not, but at least 3%.
 
Depending on your savings contributions, that sounds about right. After putting 14% of my gross pay into 401k, then the remaining health care, life insurance, and tax deductions, I take home about 65.6% of my gross every two weeks.

Like QiG, I'm maxing out my company's contribution to my 401k.

~HotShotX
 
I wish I got that. I only get to take home about 54% of my pay. :( I have insurance for myself (Health, Eye, Life) and my daughter(Health) and my wife (Eye) and it takes $103 a week just for that, plus my 401K at max employer match, then Federal, State, Medicare, and SS. Then out of that 54% I pay the babysitter every week and I basically working for insurance and a little to add to the 401k.
 
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