Payroll calculator 2026 (paycheck and take-home pay)
Take-home pay is gross pay minus pre-tax deductions, federal income tax withholding, Social Security (6.2% up to the annual wage base), Medicare (1.45%, plus 0.9% on wages above $200,000) and state and local income tax. Federal withholding follows the IRS percentage method in Publication 15-T, using the filing status and steps on your W-4.
Enter gross pay, pay frequency and your W-4 to see net pay after federal income tax, FICA and state tax. Built on IRS Publication 15-T (2026) for Forms W-4 from 2020 or later, with pre-tax deductions such as a 401(k) and health premiums.
How the paycheck is calculated
- Gross pay for the period, minus pre-tax deductions: a traditional 401(k)/403(b) lowers income-tax wages only; Section 125 health premiums lower FICA wages too.
- Social Security: 6.2% of wages up to $184,500 a year. Medicare: 1.45% of all wages, plus 0.9% Additional Medicare Tax on wages above $200,000.
- Federal income tax: IRS Publication 15-T Worksheet 1A (annual percentage method) for a 2020 or later W-4, using Step 2, the Step 3 credits and the Step 4 adjustments.
- State income tax and employee payroll contributions such as SDI or paid family leave, for the state you pick.
- What remains is take-home (net) pay.
Worked example
Single filer, paid every two weeks, $2,000 gross, no pre-tax deductions, 2020 or later W-4 with no adjustments, working in Texas:
| Line | Per paycheck |
|---|---|
| Gross pay | $2,000.00 |
| Federal income tax | − $156.15 |
| Social Security (6.2%) | − $124.00 |
| Medicare (1.45%) | − $29.00 |
| Texas state income tax | $0.00 |
| Take-home pay | $1,690.85 |
2026 payroll tax rates
| Tax | Employee rate |
|---|---|
| Social Security (wages up to $184,500) | 6.2% |
| Medicare (all wages) | 1.45% |
| Additional Medicare Tax (wages over $200,000) | 0.9% |
State income tax notes
Nine states do not tax wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. The rest use a flat rate or brackets. The calculator works out the state’s tax for the whole year for a full-year resident with no dependents and spreads it evenly over your paychecks, including deductions and credits that shrink as income grows. Each state’s figures come from its revenue department; where a state has not published 2026 amounts yet (Arizona, Idaho, District of Columbia), the latest official year is used. City and county income taxes (for example New York City, Philadelphia or Ohio municipalities) are not included.
Salary vs hourly pay
For a salary, enter the annual amount with “Annually”, or divide it by your number of paychecks. For hourly pay, multiply your rate by the hours in the pay period; a full-time year is about 2,080 hours, so $25 an hour is roughly $52,000 a year.
Frequently asked questions
How is federal income tax withheld from a paycheck?
The employer annualizes your taxable wages, subtracts the standard allowance for your W-4 filing status and any Step 4(b) deductions, applies the 2026 percentage-method brackets from IRS Publication 15-T, subtracts your Step 3 credits and divides the result by the number of pay periods. Step 4(c) extra withholding is added on top.
What percentage of my paycheck goes to taxes?
FICA takes 7.65% for most employees: 6.2% Social Security and 1.45% Medicare. Federal and state income tax depend on your income, W-4 and state, so the total is commonly 15–30% of gross pay. The calculator shows each line so you can see your own share.
What is the 2026 Social Security wage base?
The Social Security wage base for 2026 is $184,500. Once your wages for the year pass it, the 6.2% Social Security tax stops until January. Medicare has no wage base and applies to all wages.
When does the 0.9% Additional Medicare Tax apply?
Employers must withhold an extra 0.9% Medicare tax on wages above $200,000 paid to an employee in the calendar year, whatever the filing status. The employer does not match it.
Which states have no state income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages. Some of them still have payroll contributions, such as paid family leave in Washington or the employee unemployment share in Alaska.
Do pre-tax deductions lower my taxes?
Yes. Traditional 401(k) and 403(b) contributions lower federal income tax and, in most states, state income tax, but not Social Security and Medicare. Section 125 health premiums lower both income tax and FICA.
Why is my paycheck different from this estimate?
Local city or county taxes, supplemental rates on bonuses, after-tax deductions, garnishments, year-to-date limits and state withholding tables that round differently can all move the real paycheck by a few dollars or more.
Related tools: employee cost calculator, 1099 and self-employment tax calculator. More on sales and running a sales team on the SalesBond blog and the home page.
Official sources
- IRS Publication 15-T (2026) — federal income tax withholding methods.
- IRS Publication 15 (Circular E) — Social Security, Medicare and Additional Medicare Tax.
- Form W-4 — employee’s withholding certificate.
- SSA contribution and benefit base — $184,500 for 2026.
Updated on Nov 5, 2026. This calculator is for information only and is not tax, legal or payroll advice. Results are estimates based on the official 2026 figures above; check your situation with the IRS, your state or a tax professional.
