Why Is My Paycheck Smaller Than My Salary?

You accepted a $75,000 offer, divided by 26, and expected about $2,885 every two weeks. Then the first paycheck arrived several hundred dollars short. Here's where the money goes, line by line, and what you can change.

From gross pay to take-home pay

All figures below are for a single filer earning $75,000 in 2026, paid every two weeks (26 paychecks a year).

That's about 18% of gross pay going to federal taxes before any state tax or benefits. Here's what each line is.

Federal income tax

The largest deduction for most people. Your employer withholds an estimate of your yearly income tax each pay period based on your W-4. The tax itself is calculated on income after the standard deduction ($16,100 for single filers in 2026) at marginal rates of 10% to 37%. Our $75,000 earner has $58,900 of taxable income and owes about $7,670 for the year: 10% on the first $12,400, 12% on the next $38,000, and 22% on the remaining $8,500. See the full 2026 tax brackets.

Being "in the 22% bracket" doesn't mean 22% of your pay goes to federal tax. Only the dollars above $50,400 of taxable income are taxed at 22%; this earner's federal income tax is about 10% of gross pay.

Social Security and Medicare (FICA)

These are flat percentages:

• Social Security: 6.2% of wages, up to $184,500 in 2026. If you earn more than that, Social Security tax stops once your wages for the year pass the cap, so late-year paychecks get bigger.
• Medicare: 1.45% of all wages, plus an additional 0.9% on wages above $200,000.

Your employer pays a matching 7.65%, which doesn't come out of your check.

Deductions you choose

Benefits you elect also come out of each paycheck, but many reduce your taxes along the way. Here's the same $75,000 earner adding a 6% traditional 401(k) contribution, $150 per paycheck of pre-tax health insurance, and a 5% state income tax:

Notice that the $173.08 401(k) contribution only reduced take-home pay by $135, because it lowered federal income tax by about $38. The $150 health premium reduced take-home pay by about $106, because premiums paid through a cafeteria plan are exempt from both income tax and FICA.

Why your paycheck might be smaller than a calculator says

• Your W-4. Withholding is set by the W-4 you filled out when you started. If you checked the box for multiple jobs or asked for extra withholding, your paychecks will be smaller (and your refund bigger).
• State and local taxes. Nine states have no tax on wages; others take anywhere from a few percent to over 10% at high incomes. Some cities add their own income tax.
• Benefits you may have forgotten: dental, vision, life insurance, commuter benefits, HSA or FSA contributions, and union dues.
• Timing. A first paycheck can be partial if you started mid-period, and bonuses are often withheld at a flat 22% federal rate.

How to take home more

1. Review your W-4 with the IRS Tax Withholding Estimator if you got a large refund last year; you may be over-withholding.
2. Use pre-tax accounts such as a traditional 401(k), HSA or FSA; each pre-tax dollar costs you less than a dollar of take-home pay.
3. Check your benefit elections at open enrollment and drop coverage you don't need.

To see your own numbers, try the paycheck calculator.

Sources

• Tax brackets and standard deduction: IRS federal income tax rates and brackets.
• Social Security wage base: SSA 2026 COLA fact sheet.
• Example figures were calculated with the EveryFinance paycheck calculator.