How your paycheck is actually calculated
Your paycheck moves through a specific sequence of subtractions before it hits your bank account. First, pre-tax deductions like 401(k) contributions and traditional HSA contributions come out — these reduce the income your federal tax is calculated on. Next, federal income tax is withheld based on your filing status, pay frequency, and the 2026 tax brackets. Then FICA taxes (Social Security and Medicare) are withheld at flat rates. Finally, if your state or locality charges income tax, that comes out too. What's left is your take-home pay.
Want to see exactly which tax bracket applies to each dollar you earn? Use the
Tax Bracket Calculator for a full breakdown.
2026 federal income tax brackets
The brackets below apply to taxable income — your income after the standard deduction and any pre-tax contributions. Rates are progressive, meaning only the income within each bracket is taxed at that bracket's rate.
2026 tax brackets — single filers
| Rate | Taxable income range |
|---|
| 10% | $0 – $12,400 |
| 12% | $12,401 – $50,400 |
| 22% | $50,401 – $105,700 |
| 24% | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 |
| 35% | $256,226 – $640,600 |
| 37% | $640,601+ |
2026 standard deduction: $16,100 (single), $32,200 (married filing jointly), $24,150 (head of household). Source: IRS Revenue Procedure 2025-32.
FICA: the tax that's easy to forget
Separate from federal income tax, FICA funds Social Security and Medicare. For 2026, employees pay 6.2% Social Security tax on wages up to the annual wage base of $184,500 — any income above that isn't taxed for Social Security. Employees also pay 1.45% Medicare tax with no wage limit at all, plus an additional 0.9% Medicare surtax on wages above $200,000 (single/head of household) or $250,000 (married filing jointly). Employers match the base 6.2% and 1.45% on their side, though that doesn't come out of your paycheck.
Key insight
Because Social Security tax stops once wages hit the wage base, high earners actually see their take-home percentage increase slightly once they cross that threshold — one of the few places the payroll tax system is regressive rather than progressive.
Why a 401(k) contribution costs less than it looks like
If you contribute 5% of a $70,000 salary ($3,500) to a traditional 401(k), your take-home pay doesn't drop by the full $3,500. Because that contribution is pre-tax, your federal taxable income shrinks by $3,500 too, which lowers your federal tax bill. Depending on your bracket, the real hit to your paycheck might only be $2,500–$2,800 — the rest is tax you would have paid anyway, now working for you in a retirement account instead.
State taxes: the piece this calculator can't fully automate
Nine states — including Texas, Florida, and Washington — charge no state income tax at all. Others range from under 3% to over 13% at the top marginal rate, and many use their own bracket structures rather than a flat rate. Because covering all 50 states accurately would require a separate calculator for each one, this tool lets you enter your own flat-rate estimate. Check your state's department of revenue for exact withholding tables if you need a precise number.
Common questions
How is take-home pay calculated?
Take-home pay is gross pay minus federal income tax, Social Security (6.2%), Medicare (1.45%), any pre-tax deductions like 401(k) contributions, and any state or local income tax that applies to you.
Why is my paycheck less than my salary divided by pay periods?
Salary is gross pay before taxes and deductions. Federal tax, FICA, pre-tax retirement contributions, and state taxes are all withheld from each paycheck, reducing it below the simple salary-divided-by-periods figure.
What is FICA tax?
FICA covers Social Security and Medicare. Employees pay 6.2% for Social Security on wages up to $184,500 (2026 wage base) and 1.45% for Medicare with no wage limit, plus 0.9% more above $200k/$250k in wages.
Does a 401(k) contribution lower my take-home pay?
Yes, but by less than the full contribution amount — it reduces your taxable income too, so you save on federal (and often state) tax, partially offsetting the paycheck reduction.
Does this calculator include state income tax?
It calculates federal tax and FICA precisely and lets you enter an optional flat state tax estimate, since state rates and rules vary widely. See our tax bracket calculator for the full federal breakdown.