How the paycheck calculator works

2026 tax year · Checked Oct 24, 2026

Take-home pay is gross pay less pre-tax deductions, federal income tax withholding, Social Security, Medicare, state income tax and post-tax deductions. Every figure follows the payroll rules an employer uses, so it matches a real pay stub as closely as the inputs allow.

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Step by step

1. Gross pay

Salary is split evenly across the year’s paychecks (52, 26, 24 or 12). Hourly pay is rate times hours times weeks, with overtime at its multiplier. A bonus is paid as its own paycheck.

2. Federal withholding

Each paycheck is annualized, the standard deduction for your filing status comes off, and the year’s brackets give the annual tax, which is divided back to one paycheck. This is the percentage method from IRS Publication 15-T for a W-4 with no adjustments. Bonuses are withheld at the 22% supplemental rate, or 37% on supplemental pay above $1 million.

3. Social Security and Medicare

Social Security is 6.2% of wages up to the $184,500 wage base; once year-to-date wages pass it, later paychecks withhold none. Medicare is 1.45% of all wages, plus 0.9% Additional Medicare on wages above $200,000. Pre-tax 401(k) contributions still count as wages for both.

4. State income tax

Each state is modeled as no tax, a flat rate or progressive brackets, with its own standard deduction where it has one. The state’s yearly tax on the job’s wages is spread across its paychecks.

5. Deductions

Each pre-tax deduction says which taxes it lowers: a traditional 401(k) lowers federal and state income tax but not FICA, while health premiums under a cafeteria plan lower all three. Post-tax deductions such as Roth 401(k) come out after tax.

Figures used

Standard deduction, single (2026): $16,100
Social Security wage base: $184,500
Additional Medicare starts above: $200,000
Supplemental withholding rate: 22%, or 37% above $1M

Assumed

Your W-4 claims no dependents, other income or extra deductions; extra withholding is its own input.
State brackets are each state’s 2025 published brackets, the latest finalized when this was checked, with announced 2026 rate cuts applied.
Withholding is what an employer takes out. The tax you owe on your return can differ, and the bracket chart shows the return-style figure.

Not modeled

City and county income taxes (New York City, Yonkers, Ohio and Pennsylvania localities and others); use the local withholding input for them.
State disability and paid leave programs (California SDI, Washington PFML and others).
Tax credits, itemized deductions and income outside this job.

Sources

These are estimates for education, not tax or investment advice. If a number looks wrong, report a problem with this calculation and say what you entered.