What Comes Out of Your Paycheck?
Take-home pay is what lands in your bank account after your employer deducts taxes and other withholdings. Understanding the gap between your gross salary and net pay helps with budgeting, negotiating offers, and planning retirement contributions. This calculator covers the federal piece — the largest single deduction for most workers.
Federal Income Tax Withholding
Federal income tax is calculated on your taxable income — gross salary minus pre-tax deductions and your standard deduction. The 2026 standard deduction is $16,100 for single filers, $32,200 for married filing jointly and $24,150 for heads of household (IRS Rev. Proc. 2025-32). This means a $65,000 salary doesn't mean you owe taxes on $65,000 — you owe taxes on roughly $48,900 if single with no other deductions.
FICA Taxes: Social Security and Medicare
FICA taxes are flat rates on gross wages (not taxable income). Social Security is 6.2% on wages up to $184,500 in 2026. Medicare is 1.45% on all wages, and employers withhold an additional 0.9% Medicare tax on wages over $200,000 (your final liability for that extra 0.9% starts at $250,000 if married filing jointly or $125,000 if filing separately, and is settled on your return). Your employer matches these amounts, effectively doubling the contribution — but you only see the employee half on your paystub.
Pre-Tax Deductions Save You Money
Contributions to 401(k), traditional IRA, HSA, FSA, and employer-sponsored health insurance are made with pre-tax dollars — they reduce your taxable income before federal income tax is calculated. A $500/month 401(k) contribution from someone in the 22% bracket only reduces take-home pay by about $390/month, while the full $500 goes toward retirement. This is the tax advantage of pre-tax investing. Post-tax deductions such as Roth 401(k) contributions or wage garnishments come out after tax and do not lower your tax bill, so this calculator does not include them.
Worked Example: $75,000 Salary, Single, Paid Bi-Weekly
With no pre-tax deductions, taxable income is $75,000 − $16,100 standard deduction = $58,900. Federal income tax (2026 brackets): 10% of $12,400 = $1,240, plus 12% of the next $38,000 = $4,560, plus 22% of the remaining $8,500 = $1,870, for $7,670 a year. Social Security is 6.2% of $75,000 = $4,650 and Medicare is 1.45% = $1,087.50. Take-home pay is $75,000 − $13,407.50 = $61,592.50 a year — about $5,132.71 a month or $2,368.94 per bi-weekly paycheck, before any state tax. Total federal taxes take 17.88% of gross pay, even though this filer is in the 22% bracket.
Paycheck Deductions Quick Reference (2026)
| Deduction | Rate or limit | Lowers federal income tax? | Notes |
|---|---|---|---|
| Federal income tax | 10–37% | — | Progressive brackets on taxable income |
| Social Security | 6.2% | — | On the first $184,500 of wages |
| Medicare | 1.45% | — | +0.9% withheld on wages over $200,000 |
| Traditional 401(k) | Up to $24,500 | Yes | Still subject to Social Security and Medicare |
| Health insurance premium | Varies | Usually | When paid through an employer cafeteria plan |
| HSA contribution | Up to $4,400 (self-only) | Yes | Payroll HSA contributions also skip FICA |
State Taxes Not Included
This calculator covers federal taxes only. State income tax ranges from 0% (TX, FL, WA, NV, AK, SD, WY) to 13.3% (California's top bracket). Most states with income tax withhold 3–7% of wages. Factor in your state's rate for a complete picture of your take-home pay.