A paycheck calculator estimates your take-home pay by subtracting federal income tax, state income tax, Social Security, Medicare, and any voluntary deductions from your gross earnings. Your net pay depends on your filing status, pay frequency, and the state where you work.
- FICA taxes (Social Security + Medicare) are 7.65% for most workers
- Federal income tax uses a progressive bracket system (10% to 37%)
- Nine states have no state income tax at all
How Paycheck Withholding Works
Every paycheck goes through a withholding process before it reaches your bank account. Your employer uses your W-4 form to determine how much federal income tax to withhold, then subtracts FICA taxes (Social Security and Medicare), state taxes, and any voluntary deductions.
The order matters: pre-tax deductions like 401(k) contributions and health insurance premiums reduce your taxable income before income tax is calculated, lowering your overall tax burden. FICA taxes, however, are calculated on gross wages before most deductions.
Start with Gross Pay
Subtract Pre-Tax Deductions
Calculate Federal Income Tax
Subtract FICA and State Tax
2026 Federal Tax Brackets Overview
Federal income tax is progressive, meaning only the income within each bracket is taxed at that bracket's rate. The 2026 brackets have been adjusted upward for inflation.
| Tax Rate | Single Filers | Married Filing Jointly |
|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
If you earn $60,000 as a single filer, you pay 10% on the first $11,925, 12% on income from $11,926 to $48,475, and 22% only on the portion from $48,476 to $60,000. Your effective tax rate ends up much lower than your marginal bracket.
Understanding FICA Taxes
FICA stands for the Federal Insurance Contributions Act. It funds Social Security and Medicare. Both employees and employers pay FICA taxes — each side contributes 7.65% of wages (6.2% for Social Security + 1.45% for Medicare).
Once your year-to-date wages exceed the Social Security wage base ($176,100 in 2026), no additional Social Security tax is withheld for the rest of the year. Medicare has no cap, and high earners pay an additional 0.9% Medicare surtax on wages above $200,000.
State Income Tax Overview
State income tax varies widely. Nine states have no income tax at all, while others have flat rates or progressive brackets that can add significantly to your total withholding.
| Category | States |
|---|---|
| No Income Tax | AK, FL, NV, NH*, SD, TN, TX, WA, WY |
| Flat Rate | CO, IL, IN, KY, MA, MI, NC, PA, UT |
| Progressive (highest rate) | CA (13.3%), HI (11%), NJ (10.75%), OR (9.9%) |
New Hampshire taxes only interest and dividend income, not wages. Starting in 2027, this tax will be fully phased out, making NH a true zero-income-tax state for all income types.
Tips for Accurate Withholding
Frequently Asked Questions
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