How to use this calculator
Start by entering your annual gross salary, the total amount your employer pays you before any deductions. Then choose how often you get paid and your tax filing status. The calculator uses simplified 2026 federal tax brackets and your selected state tax rate to estimate withholding.
For a more accurate picture, add your pre-tax deductions: your 401(k) contribution (as a percentage of salary or a flat dollar amount per paycheck) and your health insurance premium. These reduce your taxable income, so your actual tax bill drops when you contribute more.
Understanding your paycheck deductions
Every paycheck has two categories of deductions: taxes and voluntary benefits. Here's what each one means:
- Federal income tax: A progressive tax based on your taxable income and filing status. The U.S. uses marginal brackets, so only the income within each bracket is taxed at that rate, not your entire salary.
- State income tax: Varies by state. Nine states (including Texas, Florida, and Washington) have no state income tax. Others range from about 1% to over 13%.
- Social Security (FICA): A flat 6.2% on earnings up to the wage base ($176,100 in 2025). Your employer pays an additional 6.2%.
- Medicare (FICA): A flat 1.45% on all earnings, with an additional 0.9% on income above $200,000. Your employer also pays 1.45%.
- 401(k) contributions: Voluntary pre-tax retirement savings. Reduces your taxable income now but you'll pay taxes on withdrawals in retirement.
- Health insurance: Most employer-sponsored plans deduct premiums pre-tax through a Section 125 plan, reducing your taxable income.
How federal tax brackets work
A common misconception is that moving into a higher tax bracket means all your income is taxed at the higher rate. In reality, the U.S. uses marginal brackets: each bracket only applies to income within that range.
For example, a single filer earning $60,000 in 2026 would pay 10% on roughly the first $11,925, then 12% on income from $11,925 to $48,475, and 22% only on the remaining amount above $48,475. After the standard deduction, the effective federal tax rate would be well below 22%.
Frequently asked questions
How much of my paycheck goes to taxes?
For most Americans, roughly 20 to 35% of gross pay goes to taxes including federal income tax, state income tax, Social Security (6.2%), and Medicare (1.45%). The exact amount depends on your salary, filing status, state of residence, and deductions.
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what actually lands in your bank account after subtracting taxes, retirement contributions, and insurance premiums. Net pay is typically 60 to 80% of gross pay.
How do 401(k) contributions affect my paycheck?
Traditional 401(k) contributions are deducted before income taxes, which lowers your taxable income. Your paycheck decreases by less than the full contribution amount because of the tax savings. For example, contributing $200 per paycheck might only reduce your take-home pay by $150 to $170.
Why is my take-home pay different from what I expected?
Common reasons include W-4 withholding settings, pre-tax deductions you may have forgotten about (like dental or vision insurance), FICA taxes taking 7.65% off the top, and local taxes in some cities and counties. This calculator helps you model each piece so you can see where every dollar goes.