How it works
Your paycheck starts as gross pay. Four things come out before it reaches your bank account:
- Pre-tax deductions such as a traditional 401(k) and health premiums. They lower the pay your income tax is based on.
- Federal income tax. The standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household in 2026) comes off first, then each slice of the rest is taxed at its bracket's rate, from 10% to 37%.
- Social Security and Medicare. 6.2% for Social Security on pay up to $184,500, and 1.45% for Medicare on all of it, plus 0.9% on wages above $200,000 ($250,000 married filing jointly).
- State and local income tax, which depends on where you live and work.
Take-home = gross − pre-tax deductions − federal tax − Social Security − Medicare − state tax
Worked example
You earn $75,000 a year, file single and are paid every two weeks. After the $16,100 standard deduction, $58,900 is taxable, and federal income tax comes to $7,670 for the year. Social Security takes $4,650 and Medicare $1,087.50.
That leaves $61,593 a year, or $2,368.94 per paycheck in a state with no income tax. Your top bracket is 22%, but your federal income tax averages just 10.2% of your pay.
Put 6% in a 401(k), pay $2,400 a year in health premiums and live in a state with a 5% income tax, and take-home falls to $52,989, or $2,038.04 per paycheck, while $4,500 goes into your retirement account.
Things to know
- This estimates what you owe, not what's withheld. Your employer's withholding follows your W-4, so your paychecks can differ a little. The difference comes back as a refund, or is due, when you file. To check you're on track, use the W-4 withholding calculator.
- Credits and extra deductions aren't included. The child tax credit, and the new deductions for tips, overtime and seniors, can lower your tax further.
- Your bracket isn't your rate. Moving into a higher bracket only taxes the dollars above the line at the higher rate.
- Local taxes. Some cities and counties add their own income tax. Add it to the state rate to include it.
Paycheck calculators by state
These use each state's own 2026 brackets, deductions and payroll taxes (such as disability insurance) instead of a single rate: California · Florida · Georgia · Illinois · Michigan · New York · North Carolina · Ohio · Pennsylvania · Texas.
Questions people ask
How much is taken out of a paycheck?
For many people, between a fifth and a third of gross pay, depending on income, filing status and state. In the example above it's 18% with no state tax.
Does a 401(k) lower my taxes?
A traditional 401(k) lowers your federal (and usually state) income tax now, but not Social Security or Medicare. Each $100 you put in costs you less than $100 of take-home pay. See how it grows with the 401(k) calculator.
How do I turn an hourly wage into a salary?
Switch the calculator to per hour, or use the salary converter for daily, weekly and monthly figures too.
Sources
- IRS: tax inflation adjustments for tax year 2026 (brackets and standard deduction)
- IRS: Rev. Proc. 2025-32, 2026 tax rate tables
- Social Security Administration: contribution and benefit base ($184,500 in 2026)
- IRS: Topic 560, Additional Medicare Tax
- IRS: new and enhanced deductions for individuals
Reviewed September 26, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.