What is your Take Home Pay / Gross Pay ratio?

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MathWizard
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by MathWizard »

Me: 55%
Spouse : 18% (yes 82% goes into taxes and 403b)

Maxing 403b's
Still had to pay in $1500 in taxes beyond our withholding.

We also fully fund ROTHs.
rgarling
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by rgarling »

- 51% -
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backofbeyond
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by backofbeyond »

54%

For years it was 66%, but kicked my TSP savings into high gear after reaching 50.

Seems I'm about where many of my fellow bogleheads are...interesting.
The question isn't at what age I want to retire, it is at what income. - George Foreman
blackburnian
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by blackburnian »

37-38%

Deductions include FICA, pre-tax transit, max 403b, FSA, health insurance, and LT disability.
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aj76er
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by aj76er »

Does this mean you have to pay estimated taxes? I had to do that once at the state level (due to a sale of a rental property) so I'm always hesitant to withhold all taxes from paycheck.
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corn18
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by corn18 »

57.2% Max 401k, 401k catch up, and after tax 401k

DENTAL 0.17%
VISION 0.09%
LIFE INSURANCE 0.77%
LTD 0.90%
PAC 0.21%
STD 0.53%
FED TAX 16.48%
SS 0.00%
MEDICARE 2.35%
STATE TAX 4.26%
PRE TAX 401k 7.00%
PRE TAX 401k Catch up 3.00%
AFTER TAX 401k 7.00%
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nordsteve
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by nordsteve »

Varies throughout the year. For the last pay period of 2017, it was 51%. For the first pay period of 2018, it was 0%.
LiterallyIronic
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by LiterallyIronic »

Gross: $2,645.83 semi-monthly
Federal Income Tax: $74.72 (2.8%)
Social Security: $163.85 (6.2%)
Medicare: $38.32 (1.4%)
State Income Tax: $91.81 (3.5%)
401k: $204 (7.7%)
Pre-tax health insurance: $3 (0.1%)

Net: $2,070.13 (78%)

Don't worry, I save more than $408/month! We also max two Roth IRAs and pay extra on our mortgage. But those come from after-tax dollars.
remomnyc
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by remomnyc »

I just retired, but it was 54% after fed, state, local, SS,and Medicare. I maxed out 401k, catch up contribution, and FSA.
CRC301
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by CRC301 »

56.5%

That's for wife and I's income. Things deducted out of pay-check: Taxes (Fed, State, Local, SS, Medicare), each max our 401K, max HSA, medical, dental, vision, and long-term disability. We normally owe taxes at filing time; started using IRS W-4 tool last year and owed < $1k but in years past owed > $1K. I expect we'll owe < $1k again this year.
smitcat
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by smitcat »

Right about these numbers recent years:
22% spending
33% taxes (payroll)
44% savings
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Shackleton
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by Shackleton »

corn18 wrote: Mon Jun 04, 2018 3:47 pm 57.2% Max 401k, 401k catch up, and after tax 401k

PRE TAX 401k 7.00%
PRE TAX 401k Catch up 3.00%
I don’t understand how you can be maxing your 401k and
Catch up with those percentages. If you make $200k the catch up is maxed but the 401k is only $14k. If you make $264k and change, the 401k is maxed but you over contributed to the catch up.
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton
bada bing
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by bada bing »

43% last year

I do a full mega-backdoor 401K + catchup and a HSA (single guy). Typical deductions for insurances (life, health, disability).
It seems like a big bite, but I end up with enough to stay happy and not enough to get into too bad trouble. I manage
to save a little outside of work plans from my 43% as well - backdoor Roth and maybe ~$10K per year in taxable.

I'm within a few years of retirement and running a little behind on my savings. At this point, controlling spending and
lifestyle expectations are more effective than trying to make up all the difference in portfolio size.
panhead
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by panhead »

Ratio is 29%
Since I bank my bonuses, etc, if I included those, the ratio would be even lower
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MNGopher
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by MNGopher »

45 %

Federal and State (22 & 7% bracket)
Max 403B (+ over 50 catch up)
7.5% towards state pension fund
social security.
very small charitable contribution.
my medical insurance is paid by employer.
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Edie
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by Edie »

2016 - 65.5% net to gross ratio, including bonus (4.5%) because it was easier to just look at last paycheck for 2016 than to subtract that out.

25% of the deduction was for tax deferred savings or health insurance (I did my HSA deposits outside of payroll in 2016, so not included in these figures), 0.6% for STD/LTD/group life, 7.3% SS/MDC (this looked wonky to me til I remembered SS/MDC not charged on cafeteria plan amounts), 1.3% to state tax, 0.3% to federal tax. Received large federal refund (college tax credits).


2017 - 51% net to gross ratio, including bonus (4%) for same reason as above.

41% of the deduction was for tax deferred savings or health insurance (HSA through payroll), 0.5% was STD/LTD/group life, 6.9% SS/MDC, 1% for state tax, 0% federal. Received smaller federal refund (college tax credits).


2018 YTD - 49.7% net to gross ratio, including bonus (5%) for same reason.

39.2% of deduction has been tax deferred savings or health insurance (HSA through payroll), 0.4% STD/LTD/group life, 7% SS/MDC, 1.4% state tax, 2.3% federal tax. Expect to receive small ($200) refund according to IRS withholding calculator (did not include college tax credits in calculation so could be larger, but I have a hard time parsing those amounts out, and I'd rather err on the side of "yay refund" than 'doh, I owe").
furikake
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by furikake »

54.87% for me, 0.57% on dh. W2 only, not including business dividends.
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SmileyFace
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by SmileyFace »

yatesd wrote: Sun Jun 03, 2018 7:58 pm I'm not sure the results will be meaningful. Too many variables. Short term/long term disability, benefits, HSA, 401K, life insurance, people saving for a flex account etc.
Not to mention variances in State Income Taxes and Local Income Taxes. I agree - I'm not sure the usefulness of knowing other's numbers - a lower ratio could be due to any combination of high-income, high State/Local Taxes, high insurance payments, and tax-advantaged retirement accounts. (Although it looks like some folks are breaking down the details which might be what the OP is looking for).
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corn18
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by corn18 »

Shackleton wrote: Tue Jun 05, 2018 7:13 am
corn18 wrote: Mon Jun 04, 2018 3:47 pm 57.2% Max 401k, 401k catch up, and after tax 401k

PRE TAX 401k 7.00%
PRE TAX 401k Catch up 3.00%
I don’t understand how you can be maxing your 401k and
Catch up with those percentages. If you make $200k the catch up is maxed but the 401k is only $14k. If you make $264k and change, the 401k is maxed but you over contributed to the catch up.
Company stops withholding for catch up when I hit the max but continue to withhold for the other pre-tax and after tax.
Don't do something, just stand there!
sailaway
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by sailaway »

corn18 wrote: Tue Jun 05, 2018 5:59 pm
Shackleton wrote: Tue Jun 05, 2018 7:13 am
corn18 wrote: Mon Jun 04, 2018 3:47 pm 57.2% Max 401k, 401k catch up, and after tax 401k

PRE TAX 401k 7.00%
PRE TAX 401k Catch up 3.00%
I don’t understand how you can be maxing your 401k and
Catch up with those percentages. If you make $200k the catch up is maxed but the 401k is only $14k. If you make $264k and change, the 401k is maxed but you over contributed to the catch up.
Company stops withholding for catch up when I hit the max but continue to withhold for the other pre-tax and after tax.
Which raises another question: was OP looking for most recent or annual? Those are usually very different numbers in our household.
clutchied
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by clutchied »

right around 50%

We max 2x 403b's (37k)
1 x Fam HSA (6.9k)
1x Dependent care FSA (5k)

plus all those delicious taxes...
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vinnydabody
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by vinnydabody »

For 2017, it was 64%, with maxed FSA and 11K to the TSP. Owed $1300 combined federal and state.
For 2018, we're at 57.5% YTD, with increased withholding, $5K going to HSA and $13K to TSP. Expecting to come up about even tax-wise.

Single-earner household BTW. Used my TSP for my EF last year and am repaying it currently.

My 2017 take-home to ALI (Adjusted Livesoft Income) ratio was 59.9%.
McDougal
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by McDougal »

For me in 2017, take home/gross = 52%

The rest was taxes 35%, 401K 10% and HSA/med/dental 3%
n00b
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by n00b »

46% - Maxing a 457b and family HSA.
lazydavid
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by lazydavid »

56%. Maxing 401k, medical and dependent care FSAs, plus the usual insurance. I haven't been able to convince SWMBO that over-withholding is a bad thing, so we tend to get refunds of about 4% of gross every year.
SDLinguist
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by SDLinguist »

Combining both our incomes it hovers right around 48% combined. That's the normal taxes, insurance, etc. and maxing 2 401ks, Roths and HSAs.
PhrugalPhan
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by PhrugalPhan »

I have a much different take home Jan through July than the remainder of the year. This is due to maxing out my 457b + catch up by the end of July. The remainder of the year there is no 457 deductions. ( I can do this due to no matching dollars - we have a pension instead).

For Jan. - July, the take home is 27% (Taxes, pension contribution, 457, HSA)
For Aug. - Dec., the take home is about 70% (Taxes, Pension, HSA)

I know it makes little difference as I can (& do) put the extra funds in a brokerage instead of the 457 plan, but I am soooooo happy when the end of July comes around each year. :moneybag
alfaspider
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by alfaspider »

67% at the last pay check.

That's post SS-cap hit and also with intentional under withholding (I try to pay the most possible at tax time without incurring a penalty). Max 401k/HSA/DCSA + Family Health Insurance.
Quaestner
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by Quaestner »

Teacher - 63.2% (no 403b contribution, but pension and ss deductions).
Determined
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by Determined »

I have life insurance from my mother that I am using to offset all the tax deferrals so my take home is 17%

Insurance, pension contribution, maximum 403b and 457, $1200 to HSA to get employer match in a savings account, 24% bracket

Edit: The 403b contribution maxes out in August. Then it will be more like 55%
Last edited by Determined on Thu Jul 19, 2018 5:26 pm, edited 1 time in total.
DesertDiva
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by DesertDiva »

46%. Deductions include health ins, dental ins, AD&D, life ins, savings plan, and additional federal withholding to compensate for miscellaneous income.
dstac
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by dstac »

Seem to be at the high end:
2 player: ~65% take home/gross
remomnyc
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by remomnyc »

fantasytensai wrote: Sun Jun 03, 2018 8:17 pm The purpose, to be brutally honest, is that when I did the calculations for myself and saw that I was only taking home less than 55% of my take home pay, I was a little shocked, and wanted to see if this is normal.
You made me feel better. I just retired, but for the year my net was 54% of gross. I maxed out 401k, catch up, FSA, and had a small deduction for transit. I also had additional federal withheld and typically end up owing $3k at tax time.
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market timer
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by market timer »

Ratio = 75%
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rosylenm
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by rosylenm »

Net/Gross = 56%; drops to 48.5% if I also subtract IRA contribution

Max 403(b), $750 for FSA; employer covers medical/dental

Owed $850 to IRS, $1200 refund from state
LBTRS
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by LBTRS »

70% for us.
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TierArtz
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by TierArtz »

47% for the year to date. Includes taxes, dental/vision/spouse life, maxed 401k, maxed ESPP, and 12% deferred comp. I'm going to kick the deferred compensation up to 15% next year. Does not count my pension. I've withheld 200 to 1500 per month extra from my pension to cover taxes on investments depending on my year-end forecast.
randomguy
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by randomguy »

fantasytensai wrote: Sun Jun 03, 2018 8:09 pm
yatesd wrote: Sun Jun 03, 2018 7:58 pm I'm not sure the results will be meaningful. Too many variables. Short term/long term disability, benefits, HSA, 401K, life insurance, people saving for a flex account etc.
I disagree, I think it will be very meaningful. Why not just tell us if you maxed out HSA, 401k, etc? Life insurance and disability premiums are usually negligible amounts.
And what meaning are you going to draw? Other variables: married, kids, healthcare contributions, access to 457 plans, mandatory pension contributions, SS contributions (both do you do them and if you are capped), over 50 versus under contribution limits, HCE 401(k) limits, kids in college, bought an EV, homeowner versus renter, ROTH versus traditional, high tax state versus low, medical expenses, and pretty much every thing else that goes into a tax return.

You can draw some rough averages but you might not match the average case very closely. And very few of the thing above mentioned things are things that you are really going to manipulate.
misscourtneyk
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by misscourtneyk »

I actually found this an interesting exercise and something I've never thought to calculate before. My take home percentage is currently 59%. I have deductions taken for medical, dental, vision, federal/state/medicare taxes, and a hefty chunk into my 401K.

From that 59% take home percentage, I fund my Roth IRA and brokerage accounts so my actual "take home that I can spend" is more like 45ish.
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
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unclescrooge
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Re: What is your Take Home Pay / Gross Pay ratio?

Post by unclescrooge »

yatesd wrote: Sun Jun 03, 2018 7:58 pm I'm not sure the results will be meaningful. Too many variables. Short term/long term disability, benefits, HSA, 401K, life insurance, people saving for a flex account etc.
+1

My take home is 11%.

If I exclude ESPP contributions, it's 30%.

My wife's take-home is 69%.

Combined it's about 54.8%.

Not sure how this is useful.
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