How the Paycheck Calculator Works
This paycheck calculator estimates your take-home pay by subtracting federal income tax, Social Security (6.2%), Medicare (1.45%), and state income tax from your gross salary. Enter your annual salary, filing status, and state tax rate to see your net pay per paycheck and per year.
Federal Income Tax Brackets (2026)
| Taxable Income | Tax Rate |
|---|---|
| $0 - $11,600 | 10% |
| $11,601 - $47,150 | 12% |
| $47,151 - $100,525 | 22% |
| $100,526 - $191,950 | 24% |
| $191,951 - $243,725 | 32% |
| $243,726 - $609,350 | 35% |
| Over $609,350 | 37% |
Payroll Deductions Explained
- Social Security (FICA): 6.2% of gross pay, up to $168,600 in 2026.
- Medicare: 1.45% of all gross pay. An additional 0.9% applies to earnings over $200,000.
- Federal income tax: Based on your filing status and taxable income bracket.
- State income tax: Varies by state. Some states (TX, FL, WA) have no state income tax.
- Pre-tax deductions: 401(k), HSA, FSA contributions reduce your taxable income.
How to Increase Your Take-Home Pay
- Max out pre-tax retirement contributions — 401(k) contributions reduce taxable income.
- Use an HSA or FSA — Health savings accounts are triple tax-advantaged.
- Adjust your W-4 — If you are getting a large tax refund, you may be over-withholding.
- Negotiate a raise — Use our Pay Raise Calculator to plan your next salary increase.
Common Pre-Tax Deductions
- 401(k) contributions: Up to $23,500 in 2026 (under 50). Reduces taxable income dollar-for-dollar.
- Health insurance premiums: Employer-sponsored health insurance premiums are typically pre-tax.
- HSA contributions: Up to $4,300 (individual) or $8,550 (family) in 2026. Triple tax advantage.
- FSA contributions: Up to $3,300 in 2026 for healthcare FSA. Use it or lose it.
- Commuter benefits: Up to $325/month for transit and parking.
How to Read Your Paystub
Your paystub shows gross pay, each deduction, and net pay. Key sections include: earnings (regular, overtime, bonus), taxes (federal, state, Social Security, Medicare), pre-tax deductions (401k, health), and post-tax deductions (Roth 401k, life insurance). Always review your paystub to catch errors.