Federal Take-Home Pay: What's Left After Deductions

Your offer letter says one number. Your bank account says another. The gap between your federal salary and your actual take-home pay can be 25% to 35%, and most new employees are surprised by how much comes out before they ever see it.

This breakdown shows exactly what gets deducted from a federal paycheck in 2026, in the order it happens, using a real GS-12 example.

Key Takeaways

  • Federal take-home pay runs roughly 65% to 75% of gross salary after retirement, FICA, TSP, FEHB, and taxes.
  • A GS-12 Step 5 in Washington, DC nets about $2,942.86 biweekly in a typical scenario, from a six-figure salary.
  • Traditional TSP and FEHB premiums are pre-tax, so they shrink your tax bill, not just your paycheck.
  • The Federal Take-Home Pay Calculator shows your own number in seconds.

The Deductions, In Order

Federal payroll does not just subtract taxes. The deductions stack in a specific sequence, and the order matters because some come out before tax is calculated.

Here is what leaves a typical FERS employee's paycheck:

  • FERS retirement contribution. Between 0.8% and 4.4% of salary, depending on when you were hired. Most employees hired in 2014 or later pay 4.4%.
  • Social Security and Medicare (FICA). 6.2% for Social Security up to the annual wage base, plus 1.45% for Medicare, for 7.65% total.
  • TSP contribution. Whatever percentage you elect. Traditional comes out pre-tax; Roth comes out after-tax.
  • FEHB premium (your share). Deducted pre-tax under Premium Conversion, which lowers both income tax and FICA.
  • Federal income tax withholding. Based on your W-4 and your taxable wages after pre-tax deductions.
  • State income tax. Varies widely; some states have none.

The key insight: traditional TSP and FEHB come out before income tax is figured. So a dollar you put in traditional TSP does not cost you a full dollar of take-home, because it also trims your tax.

A Real GS-12 Paycheck

Numbers make this concrete. Take a GS-12 Step 5 in the Washington, DC locality, which earns $116,071 a year in 2026. Spread across 26 pay periods, gross biweekly pay is about $4,464.27.

After the standard stack of deductions, a typical scenario lands at roughly $2,942.86 in net biweekly take-home pay. That is about 66% of gross.

Line Effect on the paycheck
Gross biweekly (GS-12/5, DC) $4,464.27
FERS retirement reduces pay, after-tax
FICA (7.65%) reduces pay
Traditional TSP reduces pay and taxable income
FEHB share reduces pay and taxable income
Federal and state tax reduces pay
Net biweekly take-home ~$2,942.86

Your own number will differ based on your TSP rate, FEHB plan, W-4 settings, and state. But the shape is the same for nearly everyone: a six-figure salary that delivers a paycheck noticeably smaller than the headline.

What You Can Actually Control

Some deductions are fixed. FERS and FICA are set by law. But two of the biggest levers are yours:

  • TSP rate. Higher traditional contributions lower your take-home now but also cut your tax and build retirement savings. At least contribute enough to get the full 5% agency match, or you are leaving free money behind.
  • FEHB plan choice. Premiums vary a lot between plans for similar coverage. Open Season is your chance to trim this line without losing protection.

Understanding the breakdown helps you make these calls on purpose instead of being surprised every payday.

Calculate Your Federal Take-Home Pay

Use our free Federal Take-Home Pay Calculator to see your own net paycheck after FERS, FICA, TSP, FEHB, and taxes. Enter your grade, step, locality, and elections to get a number you can actually plan around.

Then use the TSP Contribution Calculator to find the per-pay-period amount that captures your full agency match, and the Federal Total Compensation Calculator to see what your whole package is worth.

Frequently Asked Questions

Why is my federal take-home pay so much lower than my salary?

Your gross salary is reduced by FERS retirement (0.8% to 4.4% depending on hire date), Social Security and Medicare (7.65%), your TSP contribution, your share of FEHB premiums, and income tax withholding. Together these can take 25% to 35% off the top.

Does TSP lower my taxable income?

Traditional TSP contributions are pre-tax, so they lower your federal income tax withholding. Roth TSP contributions are after-tax and do not. Both come out of your paycheck, but only traditional reduces the tax bite now.

How much does FEHB take out of my paycheck?

Your share of the FEHB premium is deducted pre-tax under Premium Conversion, which lowers both income tax and FICA. The amount depends on your plan and tier, often $100 to $400 biweekly for the employee share.

Is take-home pay the same in every state?

No. State income tax varies widely, and several states have none. Two identical GS-12s in different states can have different net pay purely from state withholding.