How your paycheck is worked out
Every paycheck starts with your gross pay and loses a few slices on the way to your bank account. The calculator follows the order payroll uses:
- Pre-tax deductions come off first. A traditional 401(k) lowers the wages used for income tax. HSA contributions and health premiums paid through your employer’s cafeteria plan lower the wages for income tax and for Social Security and Medicare.
- Federal income tax uses the IRS percentage method. Your pay is annualized, the standard deduction for your Form W-4 filing status is removed, the 2026 brackets are applied, and the result is divided by the number of paychecks.
- FICA: 6.2% Social Security on wages up to $184,500 in 2026, and 1.45% Medicare on all wages, plus 0.9% on wages over $200,000.
- State tax: nine states have no income tax on wages. For the others, enter a flat rate for a quick estimate, or open your state’s paycheck calculator for its real brackets, deductions, local taxes and payroll programs.
2026 federal tax brackets and standard deduction
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | to $50,400 | to $100,800 | to $67,450 |
| 22% | to $105,700 | to $211,400 | to $105,700 |
| 24% | to $201,775 | to $403,550 | to $201,750 |
| 32% | to $256,225 | to $512,450 | to $256,200 |
| 35% | to $640,600 | to $768,700 | to $640,600 |
| 37% | over $640,600 | over $768,700 | over $640,600 |
| Standard deduction | $16,100 | $32,200 | $24,150 |
Married filing separately uses the single brackets, except that 37% starts at $384,350. Source: IRS Revenue Procedure 2025-32, checked on 21 October 2026.
Worked example: $60,000 salary, paid every two weeks
A single filer earning $60,000 with no pre-tax deductions, living in Texas (no state income tax):
- Taxable income: $60,000 − $16,100 standard deduction = $43,900.
- Federal tax: 10% of $12,400 ($1,240) + 12% of $31,500 ($3,780) = $5,020 a year, or $193.08 per paycheck.
- Social Security: 6.2% × $60,000 = $3,720 ($143.08 per paycheck). Medicare: 1.45% × $60,000 = $870 ($33.46).
- Take-home: $60,000 − $5,020 − $3,720 − $870 = $50,390 a year, or $1,938.08 per paycheck.
Put 5% into a traditional 401(k) and federal tax falls by $360 a year, because $3,000 less is taxed at 12%. Your take-home only drops by $2,640, not the full $3,000.
No-income-tax states
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages. Some still have other payroll deductions, such as Washington’s paid family leave premium, and some cities elsewhere charge local income tax. Those are not included here.
Paycheck calculators by state
For exact state brackets, local taxes (such as New York City, Philadelphia or Maryland counties) and state programs like California SDI, use the calculator for your state, or compare take-home pay in every state:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Tips, overtime and seniors: the 2025–2028 deductions
The 2025 tax law added temporary federal deductions for tax years 2025 through 2028:
- Qualified tips: up to $25,000 a year (IRS: No Tax on Tips).
- Qualified overtime: the premium part of overtime pay (the “half” in time-and-a-half), up to $12,500, or $25,000 on a joint return (IRS: No Tax on Overtime).
- Seniors: an extra $6,000 for each person aged 65 or older (IRS: enhanced deduction for seniors).
The tips and overtime deductions phase out above $150,000 of modified adjusted gross income ($300,000 joint), and the senior deduction above $75,000 ($150,000 joint). You claim them on your tax return, and the IRS says the tips and overtime deductions are available whether or not you itemize. They reduce income tax only, not Social Security or Medicare, and payroll does not apply them automatically. If you expect a large deduction, you can list it on your Form W-4 (Step 4(b)) so less tax is withheld; this calculator keeps it simple and does not include them.
Tips for a more accurate estimate
- Use your real filing status. Married couples who both work often need the Step 2 box on Form W-4, which withholds more than this estimate.
- Bonuses are different. Employers may withhold a flat 22% federal rate on bonuses paid separately, so a bonus check can look smaller than expected.
- Watch the Social Security cap. If you earn more than $184,500, later paychecks grow once Social Security stops.
To turn your take-home pay into a housing budget, try the mortgage calculator or the loan calculator. For a pay raise in percent, use the percentage calculator. Our guide to US federal tax brackets for 2026 has more worked examples.