Paycheck Calculator

How to use the paycheck calculator

1. Choose salary or hourly. Salaried workers enter their yearly salary. Hourly workers enter their hourly rate and usual hours per week.
2. Pick your pay frequency. Weekly (52 paychecks a year), every two weeks (26), twice a month (24) or monthly (12).
3. Select your filing status. Use the same status as on your W-4 form: single, married filing jointly, or head of household.
4. Choose your state. State income tax ranges from 0% to over 10%, so this matters a lot.
5. Add deductions (optional). Enter 401(k) contributions, health insurance premiums or other amounts taken from your pay.
6. Read your results. You'll see your net pay per paycheck, your yearly take-home pay and a full breakdown of every tax.

How your paycheck is calculated

Every paycheck goes through the same steps. Here they are with the 2026 numbers.

Step 1: Gross pay

Gross pay is what you earn before anything is taken out.

• Salary: yearly salary ÷ number of paychecks. For example, $60,000 ÷ 26 = $2,307.69.
• Hourly: hourly rate × hours worked, plus overtime at 1.5× your rate for hours over 40 in a week.

Step 2: Pre-tax deductions

Traditional 401(k) contributions lower the income that federal and most state income taxes are based on. They don't lower Social Security and Medicare. Health, dental and FSA premiums paid through a Section 125 plan usually lower both income tax and Social Security/Medicare.

Step 3: Federal income tax

Your yearly taxable income is your pay minus pre-tax deductions minus the standard deduction:

Then the 2026 federal tax brackets apply. Each rate only applies to the part of your income that falls inside that bracket:

Step 4: FICA (Social Security and Medicare)

• Social Security: 6.2% of wages, up to $184,500 of wages in 2026.
• Medicare: 1.45% of all wages. An extra 0.9% applies to wages above $200,000 (single) or $250,000 (married filing jointly).

Step 5: State and local taxes

Nine states don't tax wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Other states use flat or bracket rates, and some cities and counties add a local income tax. A few states also take small payroll amounts for disability or paid family leave programs. Choose your state for the exact rules.

Step 6: Net pay

Net pay = gross pay − federal tax − Social Security − Medicare − state and local tax − deductions.

Worked example: $60,000 salary, paid biweekly

A single worker earns $60,000 a year, is paid every two weeks, has no pre-tax deductions, and lives in a state with no income tax.

1. Taxable income: $60,000 − $16,100 standard deduction = $43,900
2. Federal tax: 10% × $12,400 = $1,240, plus 12% × ($43,900 − $12,400) = 12% × $31,500 = $3,780. Total: $5,020 a year
3. Social Security: 6.2% × $60,000 = $3,720
4. Medicare: 1.45% × $60,000 = $870

Per-paycheck figures are rounded to the cent, so they may not add up exactly.

• Effective federal income tax rate: $5,020 ÷ $60,000 = 8.4%
• Marginal federal rate: 12% (the rate on your next dollar)
• Take-home share: 84% of gross pay

Same worker, contributing 5% to a 401(k)

5% of $60,000 = $3,000 a year goes to the 401(k) before income tax.

• Taxable income: $60,000 − $3,000 − $16,100 = $40,900
• Federal tax: $1,240 + 12% × $28,500 = $4,660 (saves $360)
• Social Security and Medicare stay the same ($4,590 total)
• Take-home: $60,000 − $3,000 − $4,660 − $3,720 − $870 = $47,750 a year ($1,836.54 per paycheck)

Saving $3,000 for retirement cuts your take-home pay by only $2,640, because the tax savings make up the difference.

Why your real paycheck may be different

• Your W-4. Extra withholding, dependents or other income on your W-4 change the federal tax taken out.
• Your employer's payroll method. Employers follow IRS Publication 15-T, which can differ from our yearly method by a few dollars per paycheck.
• Bonuses and commissions. These are often withheld at a flat 22% federal rate.
• Benefits we can't see. Life insurance, union dues, wage garnishments and similar amounts.
• Mid-year changes. A raise or reaching the Social Security wage limit changes later paychecks.

Tips to increase your take-home pay

1. Check your W-4 each year. Too much withholding means a smaller paycheck now and a refund later. Too little means a tax bill in April.
2. Use pre-tax benefits. A 401(k), HSA and FSA all lower your taxable income.
3. Claim new 2025–2028 deductions. Eligible workers can deduct up to $12,500 of qualified overtime premium pay and up to $25,000 of qualified tips. Use our overtime tax calculator.
4. Compare job offers across states. The same salary can leave you thousands more in a state with no income tax. Try our state pages.

Sources

• IRS: 2026 tax brackets and standard deduction (Rev. Proc. 2025-32)
• IRS Publication 15-T: Federal Income Tax Withholding Methods
• Social Security Administration: 2026 contribution and benefit base
• IRS: Additional Medicare Tax
• U.S. Department of Labor: Fair Labor Standards Act (overtime)
• State departments of revenue (linked on each state page)