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W-2 Tax Optimizer

Your federal and state tax, effective and marginal rates, and take-home pay from a W-2 salary, plus the tax you save by using the 401(k), HSA and FSA headroom you have left.

About 4 minutesFree, no account

Income and filing

$
≈ $120,000/yr · $10,000/mo · $57.69/hr

Enter your wage at any pay frequency; it converts to an annual figure. The precise take-home is shown in the results.

Pre-tax benefit elections

401(k) contribution (max $24,500)$
$0$24,500
HSA contribution (max $4,400)$
$0$4,400
Healthcare FSA (max $3,300)$
$0$3,300
Dependent Care FSA (max $7,500)$
$0$7,500
Traditional IRA (max $7,500)$
$0$7,500

Other deductions

$
The deduction is capped at $2,500.
$

Your tax picture

Federal tax
$16,250
State tax
$10,602
Effective rate
13.5%
Marginal rate
22.0%
Estimated take-home pay
$93,148/yr$7,762 a month

Tax savings available

401(k) headroom
$4,070/yr savedUnused headroom: $18,500/year
HSA headroom
$968/yr savedUnused headroom: $4,400/year
FSA headroom
$748/yr savedUnused headroom: $3,400/year
Total tax savings available: $5,786/yearBy fully using your pre-tax benefit headroom.
Save results
How this is calculated

We estimate your federal and state tax and the unused room in pre-tax accounts (401(k), HSA, FSA), then the tax those contributions would save.

The steps

  1. AGI = salary − pre-tax contributions − adjustments; taxable income = AGI − the larger of standard or itemized deductions.
  2. Federal tax from the 2025 brackets, less the child tax credit; state tax via a flat state rate.
  3. Headroom = each account’s limit − what you’ve contributed; tax saved ≈ headroom × your marginal rate.

Assumptions

  • 2025 brackets, standard deduction, and contribution limits.

Good to know

  • Simplified — doesn’t model every credit, phase-out, or local tax.
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. For tax advice, consult a CPA or Enrolled Agent. View full disclosures