401k Tax Savings Calculator

What this calculator shows

A traditional 401(k) lowers taxable wages before federal income tax and, in most states, before state income tax as well. That means the amount you contribute is usually larger than the immediate drop in take-home pay. This page helps you separate three different numbers that often get mixed together: the gross contribution, the tax savings created by that contribution, and the true reduction in your paycheck after withholding adjusts.

Use it when you are deciding whether to raise your payroll contribution, comparing retirement-plan elections during open enrolment, or checking whether a target savings rate is realistic on your current salary. Results are estimates based on 2026 withholding rules, so the best validation step is comparing the estimate with a real pay stub after the contribution change takes effect.