Terms & Assumptions

1. Purpose & Scope

TakeHomeCompare is a salary comparison tool designed to provide estimated take-home pay calculations across different countries and U.S. states. The calculations are intended for general guidance and preliminary planning purposes only.

2. Calculation Methodology

2.1 United States

Included:

Federal income tax (2025 brackets)
FICA taxes (Social Security + Medicare + Additional Medicare)
State income tax for all 50 states + DC
NYC local income tax (optional, ~3.876%)
Pre-tax retirement contributions (401k, IRA, etc.)
Filing status (Single or Married Filing Jointly)

Not included:

City/county taxes (except NYC)
State disability insurance (CA, NJ, RI, etc.)
Itemized deductions or tax credits
Self-employment taxes
Capital gains or investment income
Health insurance premiums

2.2 United Kingdom

Included:

Income tax (Personal Allowance + progressive rates)
National Insurance contributions (Class 1)
Student loan repayments (Plans 1, 2, 4, and Postgraduate)
Pension contributions (workplace pensions)

Not included:

Scottish income tax (uses England/Wales rates)
Marriage Allowance
High Income Child Benefit Charge
Pension annual allowance tapering

2.3 Ireland

Included:

Income tax (Standard Rate Band + Higher Rate)
Universal Social Charge (USC)
Pay Related Social Insurance (PRSI)

Not included:

Tax credits (Personal Tax Credit, etc.)
Age-related USC exemptions
Medical card holders exemptions

2.4 Other Countries

For Canada, Australia, New Zealand, Germany, Sweden, Denmark, Netherlands, and other countries, calculations include primary income taxes and mandatory social contributions. Provincial/state variations and specific credits may not be fully modeled.

3. Key Assumptions

Employment status: All calculations assume standard W-2/PAYE employment (not self-employed or contractor).
Tax year: Calculations use 2025 tax rates where available; some countries may use 2024 rates.
Residency: Full-year tax residency is assumed in the selected jurisdiction.
Standard deductions: U.S. calculations use standard deduction (not itemized).
Single job: Calculations assume income from a single employer.
No benefits: Employer-provided benefits (health insurance, stock options, etc.) are not included.
Currency conversion: No currency conversion is performed; results are shown in local currency.

4. Data Sources

Tax rates and brackets are sourced from:

United States: IRS Publication 15-T, Social Security Administration, state revenue departments
United Kingdom: GOV.UK tax rates, HMRC, Student Loans Company
Ireland: Revenue.ie
Other countries: OECD Tax Database, national tax authorities

Last updated: January 2025. Tax laws change frequently; we aim to update rates annually but cannot guarantee real-time accuracy.

5. Limitations & Disclaimers

⚠️ IMPORTANT: These calculations are estimates only and should not be relied upon for financial decisions, employment negotiations, tax filing, or relocation planning without independent verification.

Simplified models: Real tax systems are complex. We use simplified models that may not capture all nuances.
No personal tax advice: This tool does not provide personalized tax advice. Consult a qualified tax professional.
Regional variations: Some jurisdictions have city/municipal taxes not modeled here.
Individual circumstances: Your actual tax liability depends on factors we cannot model (dependents, credits, deductions, etc.).
No warranty: We make no warranties about the accuracy, completeness, or reliability of these calculations.

6. UK-Specific Notice

For users in the United Kingdom: This tool provides general guidance only and is not a substitute for official HMRC calculators. Actual tax liability may differ based on:

Scottish income tax rates (if applicable)
Tax code adjustments (K codes, emergency tax codes, multiple jobs)
Benefits in kind (company cars, medical insurance)
Pension scheme rules and tax relief mechanisms
Marriage Allowance and other personal allowances

Always verify calculations using the official HMRC tax calculator.

7. Use at Your Own Risk

By using TakeHomeCompare, you acknowledge that:

You understand these are estimates for informational purposes
You will verify all figures with official sources before making decisions
We are not liable for any decisions made based on these calculations
Tax laws change; rates shown may be outdated at the time of use

8. Recommended Official Calculators

For accurate, personalized calculations, use these official tools:

United States: IRS Tax Withholding Estimator
United Kingdom: HMRC Tax Calculator
Ireland: Revenue.ie Tax Calculator
Canada: CRA Tax Calculator
Australia: ATO Simple Tax Calculator

9. Contact & Feedback

If you notice an error in our calculations or have suggestions for improvements, please contact us at support@takehomecompare.com.

10. License & Copyright

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