What actually comes out of your paycheck
The gap between your salary and your take-home pay comes from four main deductions. Federal income tax is withheld based on your W-4 and the IRS bracket tables. Social Security tax takes a flat 6.2% of wages up to the annual wage base: $176,100 in 2025 and $184,500 in 2026. Medicare tax takes 1.45% of all wages, plus an extra 0.9% withheld on wages above $200,000 (at filing, joint filers owe it only above $250,000 combined). Finally, state income tax applies in 41 states, ranging from about 2.5% to over 13% at the top end in California.
On top of taxes, voluntary pre-tax deductions (401(k) contributions, health insurance premiums, HSA and FSA contributions) reduce your taxable income before federal and state tax is computed, which is why a $100 contribution typically costs you only $65–$80 in take-home pay.
Why your first paycheck of the year can differ from your last
Social Security tax stops once your year-to-date wages cross the wage base. A worker earning $250,000 in 2026 stops paying the 6.2% in roughly the ninth month of the year and sees paychecks jump by hundreds of dollars. The opposite happens with the Additional Medicare Tax, which only kicks in after $200,000 of wages.
The states with no income tax
Nine states levy no tax on wage income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these, enter 0 in the state tax field. Everywhere else, a quick approximation is to use your state's effective rate for your income level, typically 3–6% for middle incomes in most states.
How to increase your take-home pay (legally)
- Max out pre-tax accounts. Every 401(k) or HSA dollar avoids federal tax at your marginal rate. See your savings instantly in the calculator.
- Fix your W-4 withholding. A large refund means you over-withheld all year. Adjusting your W-4 moves that money into each paycheck instead. Check your position with our refund estimator.
- Use employer benefits. FSA, commuter benefits, and premium conversion plans are all pre-tax money most employees leave on the table.
Accuracy notes
Federal withholding here is estimated by annualizing your salary with the standard deduction, the same approach as the IRS percentage method. Your employer's payroll system, W-4 entries (extra withholding, dependents, second jobs), and benefits like Roth 401(k) (which doesn't reduce taxable income) will cause small differences. Pick your state and its own brackets, deductions and exemptions are applied; leave it on "Enter a rate below" and the flat rate you type is used instead, which only approximates a state with progressive brackets.
How this calculator works
Take-home pay is built by subtracting, in order: pre-tax deductions (traditional 401(k), health premiums), federal income tax withholding estimated from your filing status and the annual brackets, Social Security at 6.2% up to the $184,500 wage base, Medicare at 1.45% on all wages, and state income tax where it applies. What remains is your net pay, which the tool divides across your chosen pay frequency. A traditional 401(k) lowers income-tax withholding but not Social Security and Medicare. See paycheck withholding explained.
Worked example
On a $60,000 salary paid biweekly with a 5% 401(k) contribution, $3,000 goes to the 401(k) pre-tax, FICA takes about $4,590 (7.65%), and federal income tax withholding depends on your W-4, netting roughly $46,000–$48,000 a year before state tax, or about $1,800 per biweekly check.
Sources & method: IRS Rev. Proc. 2025-32; SSA 2026 wage base ($184,500); FICA rates per the Internal Revenue Code. See our methodology for how every figure is verified.
Sources
- IRS Rev. Proc. 2025-32: 2026 tax brackets, standard deduction and other inflation-adjusted amounts
- IRS Publication 15 (2026), Employer's Tax Guide: Social Security, Medicare and supplemental-wage withholding
- IRS Publication 15-T: Federal Income Tax Withholding Methods
- Social Security Administration: Contribution and Benefit Base (the Social Security wage base)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026