Paycheck Calculator

How the paycheck calculator works

Your take-home (net) pay is your gross pay minus taxes and deductions. The calculator works through the same steps a payroll system does, but on an annual basis so the result matches what you will actually owe for the year:

1. Gross pay. Your salary, or hourly wage × hours per week × 52.
2. Pre-tax deductions. Traditional 401(k) contributions (up to the 2026 limit of $24,500) and Section 125 benefits like health insurance premiums, FSA and HSA contributions are subtracted first. Health benefits also escape Social Security and Medicare; 401(k) contributions do not.
3. Federal income tax. The standard deduction ($16,100 single, $32,200 married, $24,150 head of household) is subtracted, the 2026 brackets are applied, and the $2,200-per-child Child Tax Credit is taken off.
4. FICA. 6.2% Social Security on wages up to $184,500 and 1.45% Medicare on all wages, plus 0.9% Additional Medicare Tax above $200,000.
5. State and local taxes. Each state's 2026 brackets, standard deduction, exemptions and credits, plus mandatory state programs such as California SDI or Washington's paid leave premium.
6. Divide by pay periods. The annual net is divided by 52, 26, 24 or 12 to give your per-paycheck amount.

Federal income tax brackets 2026

Federal income tax is progressive: each rate applies only to the slice of taxable income inside its bracket, so moving into a higher bracket never reduces your take-home pay. These are the 2026 brackets from IRS Revenue Procedure 2025-32.

Social Security and Medicare (FICA)

Every W-2 employee pays FICA taxes, no matter which state they live in. For 2026, Social Security is 6.2% of wages up to $184,500 (a maximum of $11,439.00 for the year), and Medicare is 1.45% of all wages. Once your wages pass $200,000 ($250,000 for married couples filing jointly), an extra 0.9% Additional Medicare Tax applies to the amount above that threshold. Your employer pays a matching 7.65%, but that does not come out of your paycheck. If you are self-employed you pay both halves (15.3%) as self-employment tax.

State income taxes compared

Where you work makes a big difference. Nine states tax no wages at all, fourteen use a single flat rate, and the rest use graduated brackets. Pick your state for a page with its brackets, payroll programs and take-home pay examples.

*Single filer, standard deduction, no pre-tax deductions, including typical local tax where one applies statewide (IN, KY, MD, OH, PA).

New for 2026: overtime and tip deductions

The One Big Beautiful Bill Act created two temporary federal deductions for tax years 2025 through 2028. Workers can deduct the premium portion of qualified overtime pay (the extra half in "time and a half") up to $12,500 a year ($25,000 for joint filers), and people in tipped occupations can deduct up to $25,000 of qualified tips. Both deductions shrink by $100 for every $1,000 of income above $150,000 ($300,000 joint). They reduce federal income tax only — Social Security, Medicare and most state taxes still apply. Enter those amounts under "Deductions, local tax, overtime & tips" to see the effect.

How to increase your take-home pay

• Update your W-4. If you got a large refund last year, you are over-withholding. The IRS Tax Withholding Estimator shows exactly what to change.
• Use pre-tax benefits. Every $100 you put into a traditional 401(k), HSA or FSA lowers your taxable income, so it costs you less than $100 of take-home pay — often only $70–$80.
• Claim credits you qualify for. The Child Tax Credit and the Credit for Other Dependents can be claimed through your W-4 (Step 3) so you receive the benefit every paycheck instead of at tax time.
• Check local taxes when you move. Living just outside a city with an income tax (common in Ohio, Pennsylvania, Michigan and Kentucky) can add 1–3% to your take-home pay.