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With a few quick inputs, our salary calculator will ensure there are no surprises in terms of the deductions taken off your pay for tax and other purposes. Read on to learn how the Invezz salary calculator works.
How to use our salary calculator
Using our salary calculator is a simple process. Just follow these steps:
- Enter in your salary, before taxes.
- Enter in whether your salary is calculated yearly, monthly, or weekly.
- Enter in the tax year.
- Enter in your age (tax rates are often different for people who are either younger than or older than retirement age).
- Enter in any pension contributions you make, or any other adjustments.
- Click calculate to see your results.
How the salary calculator works
The Invezz salary calculator tool takes your basic financial and biographical information, accounts for the country or jurisdiction where you live, and shows you how much your take home pay will be after tax, pension contributions, and other charges like national insurance are deducted.
Why should I use it?
To avoid any nasty surprises. If your employer doesn’t deduct your taxes at source, you’ll want to set aside a good chunk of money to pay your taxes either quarterly or annually. If you know exactly how large your tax burden will be, you can plan with confidence and avoid getting blindsided by an unexpectedly large tax bill.
What to consider when paying your taxes
Here are some other factors to consider when paying your taxes:
- Availability of tax-friendly investments. There are many different kinds of investments you can pursue that will allow you to shelter a portion of your income from taxes. Do your research to see what those investments are where you live, and consider going that route to lower your tax burden.
- Remember your deductions. Depending on what you do for a living and where you live, you could be eligible for all sorts of deductions when paying your income taxes. To name just one example, people who work from home may be eligible to deduct a portion of their rent or mortgage, proportional to the size of your home office. Make sure you know what can and cannot be deducted.
- Account for bonuses. Some taxpayers do a good job of preparing for what they’ll owe on their regular salary, but forget to account for any bonuses they may receive. Make sure you don’t make that mistake.