What Comes Out of Your Paycheck
Most paychecks have three categories of deductions before you see "net pay": federal income tax (withheld based on your W-4 and the IRS's progressive brackets), state income tax (if your state has one), and FICA taxes — Social Security (6.2% on wages up to an annual cap) and Medicare (1.45%, with an extra 0.9% on higher earnings). If you contribute to a traditional 401(k) or similar pre-tax retirement account, that amount is subtracted from your pay before federal (and usually state) income tax is calculated — but it's still subject to FICA.
Why Your Actual Paycheck May Differ
This calculator estimates your annual tax liability and divides it evenly across paychecks — but real payroll withholding tables work a bit differently, and your actual W-4 elections (filing status, dependents, additional withholding, multiple jobs) directly change how much is withheld from each check. If you got a large refund or owed a lot at tax time last year, that's a sign your W-4 withholding doesn't match your actual liability — adjusting it can smooth out your paychecks without changing your total tax bill for the year.
State Income Tax Varies Enormously
Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no tax on wage income, which can make a noticeable difference in take-home pay compared to high-tax states. States with graduated brackets (like California or New York) tax higher incomes at higher rates, similar to the federal system, while states like Colorado or Pennsylvania apply one flat rate to all income. The state figures here are simplified estimates and don't include local or city income taxes (for example, New York City and many Ohio cities add their own local tax on top of the state rate).
The Social Security Wage Base
Social Security tax (6.2%) only applies up to an annual wage limit — for 2026, that's $184,500. Once your year-to-date earnings cross that threshold, Social Security tax stops being withheld for the rest of the year (though Medicare continues on all wages, plus an extra 0.9% above $200,000 for single filers or $250,000 for married couples filing jointly). This calculator applies the cap on an annualized basis.