Paycheck Calculator 2026

How Your Paycheck Is Calculated in 2026

Your paycheck goes through several deductions before reaching your bank account. Understanding each one helps you plan better and potentially maximize your take-home pay. Here is the complete breakdown of how employers calculate your net pay.

Step 1: Start With Gross Pay

Gross pay is your total compensation before any deductions. For salaried employees, this is your annual salary divided by the number of pay periods. For example, a $65,000 salary paid biweekly (26 pay periods) equals $2,500 per paycheck before deductions. Hourly workers can use our hourly to salary converter to find their annual equivalent.

Step 2: Pre-Tax Deductions

These deductions reduce your taxable income, saving you money on taxes. Common pre-tax deductions include 401(k) contributions (up to $24,500 in 2026), health insurance premiums, HSA contributions ($4,400 individual / $8,750 family), and FSA contributions ($3,300). Every dollar of pre-tax deductions saves you roughly $0.22-$0.37 in federal taxes depending on your bracket.

Step 3: Federal Income Tax Withholding

Federal income tax uses a progressive bracket system. In 2026, rates range from 10% on the first $12,400 of taxable income to 37% on income above $640,600 (single). Your W-4 form tells your employer how much to withhold. Use our income tax calculator for a detailed federal tax breakdown, or our tax refund estimator to see if you are withholding too much.

Step 4: FICA Taxes (Social Security + Medicare)

Every employee pays FICA taxes regardless of income level or state. Social Security tax is 6.2% on the first $184,500 of earnings in 2026. Medicare is 1.45% on all earnings, plus an additional 0.9% on income above $200,000 (single) or $250,000 (married). Your employer pays an equal amount, so the total FICA rate is 15.3%. Self-employed workers pay both halves — use our 1099 calculator for self-employment tax estimates.

Step 5: State Income Tax

State income tax varies dramatically. Nine states charge no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Read our guide to no-income-tax states for a complete comparison. At the other extreme, California charges up to 13.3% and New York up to 10.9%. Select your state above for accurate withholding, or visit a state-specific paycheck calculator for detailed information about your state's tax structure.

2026 Federal Income Tax Brackets (Single Filers)

For married filing jointly brackets and head of household rates, see our complete 2026 tax bracket guide.

Worked Example: $65,000 Salary in Texas

Let us walk through a real calculation. A single filer earning $65,000 in Texas (no state tax) with no pre-tax deductions:

• Gross salary: $65,000
• Standard deduction: -$16,100
• Taxable income: $50,000
• Federal tax: ($12,400 × 10%) + ($36,550 × 12%) + ($1,525 × 22%) = $1,193 + $4,386 + $336 = $5,915
• Social Security: $65,000 × 6.2% = $4,030
• Medicare: $65,000 × 1.45% = $943
• State tax (Texas): $0
• Total deductions: $10,888
• Annual take-home: $54,112 → $2,081 per biweekly paycheck

How to Increase Your Take-Home Pay

Without changing jobs, you can increase your net pay by: maximizing 401(k) contributions to get the full employer match (free money), contributing to an HSA if your health plan qualifies, checking your W-4 for over-withholding (if you get a large tax refund, you are lending the IRS money interest-free), and moving to a no-income-tax state if you work remotely. Read our full guide on 10 ways to maximize take-home pay.

Paycheck Calculator by State

Each state has different tax rules. Select your state in the calculator above, or visit a state-specific page for detailed information:

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All 50 states available — select your state in the calculator above.