How your take-home pay is calculated
- Pre-tax deductions come out first. Traditional 401(k) contributions and cafeteria-plan health premiums reduce the income that federal tax is figured on.
- The standard deduction is subtracted: $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household in 2026.
- Federal brackets apply to what is left. Each rate only applies to the slice of income inside its bracket, so moving into a higher bracket never reduces take-home pay.
- FICA is charged on wages after health premiums but before 401(k) contributions: 6.2% Social Security up to $184,500, 1.45% Medicare, and 0.9% more above $200,000 ($250,000 joint).
- State tax uses the flat rate you enter, applied after pre-tax deductions.
2026 federal income tax brackets
Taxable income ranges, after the standard deduction, from IRS Revenue Procedure 2025-32.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,751 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
What this estimate leaves out
Tax credits (child tax credit, education credits), itemized deductions, the 2025–2028 deductions for tips, overtime and taxpayers 65 and older, local income taxes, and state brackets or deductions are not modeled. The result is the annual tax spread evenly across paychecks, which is close to what a W-4 with no adjustments withholds. To see how a higher 401(k) contribution changes both your paycheck and your retirement balance, pair this with the 401(k) calculator.
Common questions
Why is my real paycheck different from this estimate?
Withholding depends on the choices on your W-4, extra withholding, tax credits such as the child tax credit, local taxes, and benefits this calculator does not ask about. Your employer also withholds based on each paycheck rather than your annual total, so bonuses and overtime can be withheld at different rates.
What is FICA?
Federal payroll tax for Social Security and Medicare. In 2026 employees pay 6.2% for Social Security on the first $184,500 of wages and 1.45% for Medicare on all wages, plus an extra 0.9% Medicare tax on wages above $200,000 ($250,000 for joint filers). Your employer pays a matching share.
Are 401(k) contributions and health premiums taxed?
Traditional 401(k) contributions skip federal and most state income tax but still owe Social Security and Medicare tax. Health, dental and vision premiums paid through a cafeteria plan skip all three. Roth 401(k) contributions are taxed like regular pay.
Which states have no income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you live in one of them, set the state rate to 0. Some cities and counties, such as New York City, add their own income tax.
Sources
- IRS Revenue Procedure 2025-32 — 2026 tax brackets and standard deduction (PDF)
- Social Security Administration — Contribution and benefit base
- IRS — Topic 560, Additional Medicare Tax
- IRS Publication 15-T — Federal income tax withholding methods
Results are estimates for educational use and are not financial, tax or legal advice. Confirm figures with your lender, plan administrator or a tax professional before you act. Spotted an error? Tell us.