Contributing to a pre-tax 401(k) and HSA lowers your take-home by less than you save, because a big share would otherwise be taxed. For a single worker earning $80,000 in a 5% state, putting $14,400 into a 401(k) and HSA cuts take-home from about $57,900 to roughly $47,300 — a drop of just $10,600 to save $14,400. The other ~$3,800 is tax you avoided. HSA payroll contributions are best of all because they also dodge the 7.65% FICA tax.
This take-home pay after 401(k) and HSA calculator shows your 2026 net pay after pre-tax retirement and health-savings contributions, including the tax you avoid. Enter your salary, contribution amounts, and state rate below to see your real per-paycheck take-home.
Pre-tax 401(k) and HSA contributions are the most powerful tools for raising your effective take-home value, because they reduce the income on which you are taxed. According to the IRS, traditional 401(k) contributions are made before federal income tax (and state income tax in most states), so every dollar you contribute escapes income tax in the year you earn it. HSA contributions made through your employer's payroll (cafeteria plan) are even more tax-advantaged — they avoid federal income tax, state income tax, and the 7.65% FICA tax. The key insight: contributing $14,400 to a 401(k) and HSA does not reduce your take-home by $14,400, because a large share would otherwise have gone to taxes.
| Account | Avoids federal income tax | Avoids state income tax | Avoids FICA (7.65%) |
|---|---|---|---|
| Traditional 401(k)/403(b) | Yes | Yes (most states) | No |
| HSA via payroll (cafeteria) | Yes | Yes | Yes |
| Roth 401(k) | No | No | No |
For 2026, the IRS sets the employee 401(k) elective deferral limit at $24,500 (plus a catch-up contribution if you are age 50 or older, and an enhanced catch-up for ages 60–63). The HSA contribution limit for 2026 is $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 catch-up at age 55+. You must be enrolled in a qualifying high-deductible health plan (HDHP) to contribute to an HSA. Maxing both accounts shelters a substantial portion of income from tax while building retirement and medical savings.
Consider a single worker earning $80,000 in a 5% state who contributes $10,000 to a 401(k) and $4,400 to an HSA — $14,400 total pre-tax:
| Item | No contributions | With $14,400 pre-tax |
|---|---|---|
| Gross salary | $80,000 | $80,000 |
| Pre-tax contributions | $0 | $14,400 |
| Taxable wages (income tax) | $80,000 | $65,600 |
| Federal + state + FICA | ~$22,100 | ~$18,300 |
| Take-home pay | ~$57,900 | ~$47,300 |
Take-home falls by about $10,600 — but you set aside $14,400. The difference of roughly $3,800 is tax you avoided. In effect, the government subsidized about 26% of your saving. This is why financial planners stress maxing pre-tax accounts before taxable saving.
The HSA is often called "triple tax-advantaged": contributions go in pre-tax (and avoid FICA when made by payroll), the balance grows tax-free, and withdrawals for qualified medical expenses are tax-free. No other account offers all three. Because HSA payroll contributions also dodge the 7.65% FICA tax — which 401(k) contributions do not — an HSA dollar is the single most tax-efficient dollar most workers can save. After capturing any employer 401(k) match, many advisors suggest funding the HSA next.
Before optimizing for taxes, capture your full employer 401(k) match. A common match is 50% of contributions up to 6% of pay, or dollar-for-dollar up to 3%–4%. On an $80,000 salary, a 4% match is $3,200 of free money each year — an instant, guaranteed 100% return on the matched portion. Always contribute at least enough to get the full match before directing money elsewhere. The calculator lets you model different contribution levels to see the take-home impact.
Spreading contributions across the year smooths the paycheck impact. If you contribute $14,400 over 26 biweekly checks, that is about $554 per check of pre-tax saving — but your take-home only drops by roughly $408 per check, because the rest is reduced tax. The calculator divides your annual figures by your pay frequency so you can see the realistic per-paycheck effect of your contribution choices.
This calculator models traditional (pre-tax) 401(k) contributions, which lower your taxable income now and are taxed in retirement. Roth 401(k) contributions are made after tax, so they do not reduce your current take-home tax — you pay tax now and withdraw tax-free later. If you expect a higher tax rate in retirement, Roth may be better despite the higher current tax. For maximizing present-day take-home and lowering this year's tax bill, traditional pre-tax contributions are the lever.
In most states, 401(k) and HSA contributions reduce state taxable income just as they reduce federal taxable income, amplifying the benefit. A few states treat certain contributions differently (for example, some do not recognize HSA deductions). Enter your state rate in the calculator (0 for no-income-tax states) to estimate the combined federal-plus-state benefit. In a no-income-tax state, the federal and FICA savings still apply.
The optimal order for most workers is: (1) contribute enough to the 401(k) to get the full employer match, (2) max the HSA if you have an HDHP, (3) return to the 401(k) toward the $24,500 limit, then (4) consider a Roth IRA or taxable investing. This sequence captures free money first, then the most tax-efficient account, then the broader pre-tax shelter. Use the calculator to see how each step changes your take-home so you can balance current spending needs against long-term, tax-advantaged saving.
If you are age 50 or older, the IRS allows additional catch-up contributions on top of the standard limits, letting you shelter even more income. For 2026, the 401(k) catch-up adds several thousand dollars to the $24,500 base limit, and savers aged 60–63 may qualify for an enhanced "super catch-up" under SECURE 2.0. The HSA catch-up is an extra $1,000 starting at age 55. For a worker in the 22% or 24% bracket, maximizing catch-up contributions in the final working years can cut current taxes by thousands while rapidly building retirement and medical savings — one of the most effective late-career tax strategies.
Both the HSA and the health Flexible Spending Account (FSA) reduce taxable income and avoid FICA when funded by payroll, but they differ in key ways. The HSA requires an HDHP, has higher limits ($4,400/$8,750 for 2026), rolls over fully year to year, and is portable and investable — making it superior for long-term tax-free growth. The FSA has a lower limit, is "use it or lose it" (with a small carryover), and is tied to your employer. For pure tax efficiency and flexibility, the HSA wins; the FSA is mainly useful when you have predictable medical or dependent-care expenses and no HDHP.
A sensible target for many workers is to first contribute enough to the 401(k) to capture the full employer match, then fund the HSA fully, then increase 401(k) contributions toward the $24,500 limit as cash flow allows. Financial guidelines often suggest saving 15% of gross income for retirement (including any match). On an $80,000 salary that is $12,000 a year. Because pre-tax contributions reduce your tax, the take-home impact of hitting that 15% target is softened — you give up less than 15% of your net pay to save 15% of your gross. The calculator lets you test contribution levels against your budget.
| Annual 401(k) + HSA | Approx. tax avoided (22% + 5% state) | Net take-home reduction |
|---|---|---|
| $5,000 | ~$1,350 | ~$3,650 |
| $10,000 | ~$2,700 | ~$7,300 |
| $14,400 (10k 401k + 4.4k HSA) | ~$4,100 | ~$10,300 |
Choosing between pre-tax and Roth contributions is fundamentally a bet on your future tax rate. Pre-tax contributions maximize today's take-home value and lower this year's tax bill, with tax due on withdrawal in retirement. Roth contributions cost you more take-home now (no current deduction) but grow and withdraw tax-free. Many workers split contributions to hedge. If your goal is to maximize current-year take-home and you expect a similar or lower tax rate in retirement, pre-tax is the stronger choice. This calculator models pre-tax contributions specifically.
An employer 401(k) match is effectively part of your salary that you only receive if you contribute. Failing to contribute enough to earn the full match is one of the most common and costly payroll mistakes. On an $80,000 salary with a 4% match, that is $3,200 a year — over $32,000 across a decade, before any investment growth. Unlike your own contributions, the match does not reduce your take-home at all; it is added on top. Always prioritize capturing the full match before any other tax-advantaged saving, then optimize the rest for tax efficiency.
Contribution limits and tax brackets are adjusted for inflation each year, so using current 2026 figures is essential for accurate planning. For 2026, the IRS set the 401(k) elective deferral limit at $24,500 and the HSA limits at $4,400 (self-only) and $8,750 (family). The federal standard deduction is $16,100 single / $32,200 joint, and the Social Security wage base is $184,500. A calculator built on prior-year limits would understate how much you can shelter and miscompute your tax. This page reflects the 2026 numbers, so your take-home and tax-savings estimates stay accurate across the full year as you contribute paycheck by paycheck.
If you are self-employed, you have even more room to shelter income: a Solo 401(k) or SEP-IRA can allow far higher contributions than an employee 401(k), because you contribute as both employer and employee. You can also fund an HSA directly (deducted on your tax return rather than through payroll) if you have an HDHP, though direct HSA contributions do not avoid self-employment tax the way payroll HSA contributions avoid FICA. Self-employed savers should coordinate retirement contributions with quarterly estimated taxes. This calculator models employee payroll contributions; the underlying tax-savings principle — pre-tax dollars reduce taxable income — applies to self-employed plans too.
Less than the amount you contribute. A traditional 401(k) contribution lowers your taxable income, so part of what you set aside would otherwise have gone to taxes. For a single worker earning $80,000 in a 5% state, contributing $10,000 cuts take-home by only about $7,300 - the other $2,700 is tax avoided.
For 2026, the IRS sets the 401(k) employee contribution limit at $24,500 (plus catch-up at 50+). The HSA limit is $4,400 for self-only coverage and $8,750 for family coverage, with a $1,000 catch-up at age 55 or older.
Yes, when contributed through your employer's payroll (cafeteria plan). HSA payroll contributions avoid federal income tax, state income tax, and the 7.65% FICA tax. This triple advantage makes the HSA the most tax-efficient account; 401(k) contributions avoid income tax but not FICA.
A traditional (pre-tax) 401(k) lowers your current taxable income and increases your effective take-home value now, taxed in retirement. A Roth 401(k) is after-tax, so it does not reduce current tax but grows tax-free. For lowering this year's tax bill, traditional is the lever.
Capture your full employer 401(k) match first - it is free money. Then, if you have a high-deductible health plan, max the HSA next because it is triple tax-advantaged and avoids FICA. After that, return to the 401(k) toward the $24,500 limit.
In most states, yes. Traditional 401(k) and HSA contributions reduce state taxable income the same way they reduce federal taxable income. A few states treat certain contributions differently. In no-income-tax states, the federal and (for HSA) FICA savings still apply.