How your take-home pay is calculated
Your paycheck starts with your gross pay (your salary divided by the number of paychecks in a year) and then comes out, in order:
- Pre-tax deductions such as traditional 401(k) contributions and health, dental, FSA and HSA premiums taken through your employer.
- Federal income tax, based on your income after those deductions, minus the standard deduction ($16,100 for single filers and $32,200 for married couples filing jointly in 2026). See the full 2026 tax brackets.
- Social Security tax of 6.2% on wages up to $184,500 in 2026. Earnings above that cap aren't taxed for Social Security, so high earners see bigger paychecks late in the year.
- Medicare tax of 1.45% on all wages, plus an extra 0.9% on wages above $200,000 ($250,000 for married couples filing jointly).
- State and local income tax, if your state has one.
Social Security and Medicare together are called FICA taxes. Your employer pays a matching 7.65% on top of your salary, which doesn't come out of your check.
Why 401(k) and health deductions affect taxes differently
A traditional 401(k) contribution lowers your federal (and usually state) income tax, but you still pay Social Security and Medicare on it. Health, dental, FSA and HSA premiums taken through a cafeteria plan are exempt from both income tax and FICA. Either way, each pre-tax dollar reduces your take-home pay by less than a dollar: at a 22% federal bracket, contributing $100 to a traditional 401(k) costs about $78 of take-home pay before state tax.
A Roth 401(k) contribution is made after tax, so it reduces take-home pay dollar for dollar. To estimate a Roth contribution, leave the 401(k) field at 0 and subtract the contribution from the result.
Why your actual paycheck may differ
- Withholding vs. tax owed. This calculator estimates your full-year federal tax and spreads it evenly. Your employer instead withholds based on your W-4, so your paycheck may differ slightly, and the difference shows up as a refund or balance due when you file.
- State taxes vary. Nine states have no tax on wages, several use a flat rate, and the rest use brackets. The state field applies a single flat rate to your taxable wages as an approximation; use your state's effective rate for a closer estimate.
- Credits and other income. The child tax credit and other credits lower your tax, while side income, investment income or a working spouse raise it. Use the income tax calculator to include deductions and credits.
- Other deductions such as life insurance, union dues, commuter benefits and wage garnishments aren't included.
Salary to paycheck: pay periods
| Pay frequency | Paychecks a year |
|---|---|
| Weekly | 52 |
| Every two weeks (biweekly) | 26 |
| Twice a month (semimonthly) | 24 |
| Monthly | 12 |
If you're paid every two weeks, two months each year have three paychecks instead of two, a useful time to put the extra check toward savings or debt.