Gross vs Net Salary Explained
Learn the difference between advertised salary and actual take-home pay.
Gross salary is the number in the offer letter. Net salary is what reaches your bank account after tax withholding and deductions.
Key takeaway
The planning number that matters most is after-tax monthly and biweekly take-home pay. Gross salary helps compare offers, but net pay shows what remains for rent, food, transit, savings, insurance, and debt.
How to apply this
Run your salary through the New York Salary Calculator, then compare net pay against fixed costs. If you live in NYC, include local city tax. If you freelance, use the New York freelance tax calculator.