How take-home pay is calculated
Your paycheck starts with gross pay: your salary divided by the number of paychecks in a year, or your hourly rate times your hours. Your employer then takes out taxes and deductions in a fixed order:
- Pre-tax deductions. Traditional 401(k) or 403(b) contributions lower the pay that federal and most state income taxes apply to. Health, dental and vision premiums, FSA and HSA contributions taken through a cafeteria (Section 125) plan lower it too, and also lower the pay that Social Security and Medicare apply to.
- Federal income tax withholding, figured from your Form W-4 with the IRS percentage method tables (below).
- FICA taxes: Social Security at 6.2% and Medicare at 1.45% of your wages.
- State and local income taxes, if your state and city have them.
- After-tax deductions such as Roth 401(k) contributions, union dues or wage garnishments.
Take-home pay = gross pay − pre-tax deductions − federal income tax − Social Security − Medicare − state and local tax − after-tax deductions
Federal income tax withholding in 2026
The calculator follows Worksheet 1A of IRS Publication 15-T (2026), the method payroll software uses for a Form W-4 from 2020 or later:
- Multiply the taxable pay per paycheck by the number of paychecks in a year (52, 26, 24 or 12).
- Add any other income from W-4 Step 4(a), then subtract the deductions in Step 4(b). If the Step 2 box is not checked, also subtract $12,900 for married filing jointly or $8,600 for everyone else.
- Look up the result in the annual table for your filing status. For single filers with the Step 2 box not checked, the 2026 table starts at $0 tax up to $7,500, then 10% up to $19,900, 12% up to $57,900, 22% up to $113,200 and 24% up to $209,275.
- Subtract the yearly credits from W-4 Step 3, divide by the number of paychecks, and add any extra withholding from Step 4(c).
Withholding is an estimate of your yearly tax, not the tax itself. Your real 2026 tax is settled on your return, using the 2026 standard deduction of $16,100 (single), $32,200 (married filing jointly) or $24,150 (head of household).
Social Security and Medicare (FICA)
- Social Security: 6.2% of wages up to the 2026 wage base of $184,500. Once your pay for the year passes that amount, Social Security stops and your later paychecks are larger. The most anyone pays in 2026 is $11,439.
- Medicare: 1.45% of all wages, with no cap. Employers also withhold an Additional Medicare Tax of 0.9% on wages above $200,000 in the year, whatever your filing status.
Your employer pays a matching 6.2% and 1.45% on top of your pay; that share does not come out of your paycheck.
State and local tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages, so the calculator sets state tax to zero there. Every other state has its own brackets, exemptions and withholding tables, and many cities and counties add their own tax. Enter your effective state rate to include it: the state tax on a recent paystub divided by your taxable pay for that period gives a good figure. For a flat-tax state, the published rate is a close starting point.
Worked example
A single employee earns a $60,000 salary paid every two weeks, puts 5% into a 401(k), pays $75 per paycheck for health insurance through a cafeteria plan, lives in a state with an effective rate of about 4%, and has not checked the Step 2 box.
- Gross pay: 60,000 ÷ 26 = $2,307.69
- Pay for income tax: 60,000 − 3,000 (401k) − 1,950 (health) = $55,050 a year; minus $8,600 = $46,450
- Federal withholding: $1,240 + 12% × (46,450 − 19,900) = $4,426 a year, or $170.23 per paycheck
- Social Security: 6.2% × (60,000 − 1,950) ÷ 26 = $138.43; Medicare: 1.45% of the same = $32.37
- State tax: 4% × 55,050 ÷ 26 = $84.69
- 401(k) $115.38 and health $75.00
- Take-home pay: $1,691.58 per paycheck, or about $43,981 a year
New 2026 deductions for tips and overtime
For 2025 through 2028, workers can deduct up to $25,000 of qualified tips, and up to $12,500 ($25,000 if married filing jointly) of qualified overtime pay, which is the extra "half" of time-and-a-half. These lower income tax but not Social Security or Medicare. To get the benefit in each paycheck instead of at tax time, add the expected deduction to Step 4(b) of a new Form W-4 and give it to your employer. Enter the same amount in the Step 4(b) box above to see the effect.
Common mistakes
- Dividing a salary by 24 when you are paid every two weeks. Biweekly pay means 26 paychecks a year, so each one is smaller than with twice-a-month pay, and two months a year have a third paycheck.
- Expecting withholding to equal your final tax. Withholding is a projection. Other income, credits, a second job or a working spouse can leave you owing or due a refund; the W-4 steps exist to adjust for them.
- Treating 401(k) and health deductions the same. A traditional 401(k) saves income tax but not Social Security or Medicare; cafeteria-plan health premiums save both.
- Forgetting the Step 2 box with two jobs. Each employer otherwise applies the full standard deduction and the low brackets, so too little is withheld in total.
This calculator estimates a regular paycheck for 2026 using the IRS percentage method. Bonuses and commissions are often withheld at a flat 22%, and your employer's payroll system, benefits and state rules decide the exact amount. Use the IRS Tax Withholding Estimator to fine-tune your W-4.
Frequently asked questions
How much is taken out of a $60,000 paycheck?
A single filer paid every two weeks with no deductions grosses $2,307.69 per paycheck. In 2026 about $193.08 is withheld for federal income tax, $143.08 for Social Security and $33.46 for Medicare, leaving about $1,938 before any state tax.
What percentage of my paycheck goes to taxes?
Social Security and Medicare take 7.65% of most wages. Federal income tax withholding on a typical single $60,000 salary is about 8% of gross pay, and state tax adds 0 to around 6% depending on where you live, so about 16 to 22% in total for that salary.
What is the Social Security wage base for 2026?
$184,500. Social Security tax of 6.2% applies only to wages up to that amount, so the most an employee pays in 2026 is $11,439. Medicare has no cap.
Does a 401(k) lower my taxes?
A traditional 401(k) contribution lowers federal income tax and, in most states, state income tax, because it comes out before those taxes. It does not lower Social Security or Medicare. Roth 401(k) contributions come out after tax.
Why is my paycheck different from this estimate?
Your employer may use a different payroll method, have other deductions such as life insurance, disability or local taxes, or withhold state tax with its own tables. Compare each line with your paystub to find the difference.
Sources
- Internal Revenue Service. Publication 15-T (2026), Federal Income Tax Withholding Methods: Worksheet 1A and the 2026 Annual Percentage Method tables.
- Internal Revenue Service. Revenue Procedure 2025-32: 2026 tax brackets and standard deductions.
- Social Security Administration. 2026 Social Security changes: contribution and benefit base of $184,500.
- Internal Revenue Service. Topic 560, Additional Medicare Tax; Publication 15 (Circular E), Employer's Tax Guide.
- Tax Foundation. State Individual Income Tax Rates and Brackets, 2026.
Last reviewed 21 October 2026. Results are estimates; see our disclaimer.