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% on wages above $200,000 ($250,000 for joint filers). 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. State tax uses the flat rate you enter; states with progressive brackets will vary.