How this paycheck calculator works
The calculator follows the same order the IRS uses for wage earners. It starts from your gross salary and subtracts pre-tax 401(k) or similar retirement contributions to get your adjusted gross income (AGI). It then deducts the 2026 standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) to find federal taxable income, and applies the progressive 2026 tax brackets published by the IRS in Revenue Procedure 2025-32.
Payroll taxes (FICA) are calculated separately on your gross wages, because 401(k) deferrals do not reduce them: Social Security is 6.2% on wages up to the 2026 wage base of $184,500, and Medicare is 1.45% on all wages, plus an Additional Medicare Tax of 0.9% on wages above $200,000 ($250,000 for joint filers).
If you have children under 17, the calculator applies the Child Tax Credit of $2,200 per child (reduced by $50 for each $1,000 of income above $200,000, or $400,000 for joint filers), up to your federal tax. Finally, you can enter a state and local income tax rate; it is applied as a simple flat percentage of your AGI because every state has its own rules.
2026 federal income tax brackets
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,750 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,750 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Only the part of your taxable income that falls inside each band is taxed at that band's rate. Moving into a higher bracket never reduces your take-home pay — it only raises the rate on the extra dollars.
Worked examples
Single filer earning $75,000
Taxable income is $75,000 − $16,100 = $58,900. Federal tax is 10% of the first $12,400 plus 12% up to $50,400 plus 22% on the rest = $7,670. Social Security is $4,650 and Medicare $1,088. Take-home pay before any state tax: $61,593 a year, about $5,133 a month or $2,369 every two weeks.
Married couple, $120,000 combined, two children, $10,000 in 401(k)
AGI is $110,000; taxable income after the $32,200 standard deduction is $77,800. Federal tax before credits is reduced by $4,400 of Child Tax Credit to $4,440. FICA adds $9,180. Net pay after the 401(k) contribution: $96,380.
High earner, single, $250,000
Social Security stops at the $184,500 wage base ($11,439), but Medicare continues and the extra 0.9% applies above $200,000, for $4,075 in total. Federal tax is $51,304 and take-home pay is about $183,182 before state tax.
What the calculator does not include
- Itemized deductions, the new temporary deductions for tips, overtime and seniors, and credits other than the Child Tax Credit (for example the EITC or education credits).
- The refundable part of the Child Tax Credit and the exact state tax brackets, credits and local taxes of your state or city.
- Health insurance premiums, HSA/FSA contributions and other payroll deductions — subtract them from gross salary if they are pre-tax.
Your employer's withholding is based on your Form W-4 and may differ from your actual annual tax; the difference is settled when you file your return.
Frequently asked questions
What is the 2026 standard deduction?
$16,100 for single filers and married filing separately, $32,200 for married couples filing jointly and $24,150 for heads of household (IRS Rev. Proc. 2025-32).
How much is FICA tax in 2026?
Employees pay 7.65%: 6.2% Social Security on wages up to $184,500 and 1.45% Medicare on all wages, plus 0.9% Additional Medicare Tax on wages above $200,000 (single) or $250,000 (married filing jointly).
Does a 401(k) contribution reduce my taxes?
Traditional (pre-tax) 401(k) contributions reduce federal and most state income tax, but not Social Security or Medicare tax. Roth contributions do not reduce current taxes.
Why is my real paycheck different?
Payroll withholding uses your W-4 and the IRS percentage-method tables, and your employer may deduct health insurance, HSA or other benefits. This calculator estimates your annual liability instead.
Which states have no income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wage income. Enter 0% for those states.