"Income" shows up as three different numbers on your pay, and mixing them up is the source of a lot of paycheck confusion. Here's each one, in the order they're calculated.
1. Gross income — what you earn
Your total pay before anything comes out: salary, hourly wages, bonuses, overtime. It's the headline number on your offer letter.
2. Taxable income — what tax is calculated on
Gross income minus pre-tax deductions (traditional 401(k), HSA, FSA, health premiums) and the standard deduction. This is the number your tax brackets actually apply to — which is why it's smaller than gross. (Related: what AGI is.)
3. Net income — what you keep
Your take-home pay: gross minus all taxes (federal, state, and FICA) and deductions. This is what lands in your bank account — typically 70–85% of gross.
Why FICA makes "taxable" and "net" diverge
A subtlety: a traditional 401(k) lowers your taxable income but not your FICA (Social Security + Medicare) wages — those are taken on gross. So two people with the same taxable income can have different net pay depending on deductions.
See all three for your pay
The paycheck calculator shows gross, the taxes in between, and your net — line by line. For the by-hand version, read how to calculate take-home pay.