How take-home pay is calculated
- Gross pay – salary, or hourly wage × hours × 52, divided by the number of paychecks.
- Pre-tax deductions – traditional 401(k) contributions and health insurance premiums come out first and reduce taxable income. (Health premiums under a cafeteria plan also reduce Social Security and Medicare wages; 401(k) contributions do not.)
- Federal income tax – taxable income minus the standard deduction, taxed at the 2026 brackets.
- FICA – Social Security at 6.2% up to $184,500 of wages and Medicare at 1.45%, plus 0.9% Additional Medicare Tax above $200,000 ($250,000 for joint filers).
- State and local tax – from 0% in states such as Texas, Florida and Washington to more than 10% at the top rates in California.
2026 federal tax brackets
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | up to $12,400 | up to $24,800 | up to $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 |
The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household.
Worked example
A single employee earning $65,000, paid bi-weekly, contributing 5% to a 401(k) and living in a state with no income tax: 401(k) $3,250; taxable income $61,750 − $16,100 standard deduction = $45,650; federal tax about $5,230; Social Security $4,030; Medicare $943. Annual take-home is about $51,550, or roughly $1,983 per paycheck.
Why your real paycheck may differ
Employers withhold using IRS Publication 15-T and the details on your W-4 – dependents, other income, extra withholding – so your actual paycheck can differ from this estimate by a few dollars to more. Local taxes, SDI, and post-tax deductions such as Roth contributions also change the result. Self-employed? You pay both halves of FICA – see the self-employment tax calculator.
Estimates for planning only, not tax advice.
Frequently asked questions
How much is taken out of a $1,000 paycheck?
For a single filer with no other deductions, typically 15–25% including FICA (7.65%) and federal income tax, plus any state tax. Enter your details above for an estimate.
What is the Social Security limit for 2026?
Social Security tax of 6.2% applies to the first $184,500 of wages in 2026. Medicare's 1.45% has no limit, and an extra 0.9% applies above $200,000.
Does a 401(k) contribution lower my taxes?
Traditional 401(k) contributions reduce your federal and most state taxable income, so your take-home pay falls by less than the amount you contribute. They do not reduce Social Security or Medicare tax.
Why is my first paycheck of the year different?
Annual limits reset in January – Social Security restarts for high earners, and 401(k) or benefit elections may change. Bonuses are also often withheld at a flat 22% federal rate.
