How your take-home pay is calculated
Your gross pay is what your employer agrees to pay. Before the money reaches your bank account, several amounts are withheld:
- Pre-tax deductions – traditional 401(k) contributions and health insurance premiums come out first and lower your taxable income.
- Federal income tax – calculated with the 2026 IRS tax brackets after the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household).
- Social Security – 6.2% of wages up to $184,500 in 2026.
- Medicare – 1.45% of all wages, plus an extra 0.9% above $200,000 ($250,000 for married couples filing jointly).
- State income tax – estimated with each state's 2026 rates. Nine states do not tax wages.
Choose your state above, or see a detailed page with tax rates and examples for every state.
Why your real paycheck may differ
Your employer withholds based on the W-4 form you filled out, which may not match your final tax bill. Local taxes (for example in New York City or many Ohio and Pennsylvania cities), tax credits, bonuses and other deductions also change the result.
Frequently asked questions
What is the difference between gross pay and net pay?
Gross pay is your salary before anything is taken out. Net pay, or take-home pay, is what is left after taxes and deductions.
Which states have no income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages.
Does contributing to a 401(k) lower my taxes?
Yes. Traditional 401(k) contributions are taken out before federal and most state income taxes, so your taxable income is lower. They do not reduce Social Security and Medicare taxes.