How your paycheck is worked out
Net pay = Gross − 401(k) − pre-tax health − federal income tax − Social Security − Medicare − state tax
- Federal income tax: your yearly pay, minus 401(k) and pre-tax health, minus the 2026 standard deduction, run through the 2026 brackets. Then we subtract any W-4 Step 3 credits and split it evenly across your paychecks.
- Social Security: 6.2% of pay up to the 2026 wage base of $184,500. 401(k) money is still taxed here; pre-tax health premiums usually aren't.
- Medicare: 1.45% of all pay, plus 0.9% Additional Medicare Tax on pay over $200,000 in a year. Employers withhold that extra 0.9% above $200,000 no matter your filing status.
- State tax: your flat rate × pay after 401(k) and health. Real state rules vary.
Worked example
$60,000 a year, paid every two weeks, single, 5% to a 401(k) and $100 per paycheck for health insurance:
- 401(k): $3,000 a year. Health: $100 × 26 = $2,600.
- Federal: $60,000 − $3,000 − $2,600 − $16,100 = $38,300 taxable. Tax = $1,240 + 12% × $25,900 = $4,348, or $167.23 per paycheck.
- Social Security: 6.2% × $57,400 = $3,558.80. Medicare: 1.45% × $57,400 = $832.30.
- Take-home: $60,000 − $3,000 − $2,600 − $4,348 − $3,558.80 − $832.30 = $45,660.90 a year, or $1,756.19 per paycheck.
Limits of this estimate
- This estimates your tax for the year spread evenly over your paychecks. It doesn't use the IRS Publication 15-T withholding tables, so your employer's withholding can differ by a few dollars per check. You settle the difference when you file.
- Only the standard deduction is used. Itemized deductions, the senior deduction, the tips and overtime deductions, and other income aren't included. W-4 Steps 2 and 4 aren't modeled.
- State and local taxes are a single flat percent. Many states have brackets, their own deductions, or no income tax at all. Local taxes and state disability insurance aren't included.
- Roth 401(k) contributions are taxed now, so don't count them in the 401(k) percent.
Converting hourly pay to a yearly salary first? Use the salary calculator. For the Social Security and Medicare part alone, including what your employer pays, see the FICA tax calculator. Getting a bonus? The bonus tax calculator shows the flat 22% withholding.
Sources
- IRS Rev. Proc. 2025-32 – 2026 brackets and standard deduction
- SSA contribution and benefit base – $184,500 maximum taxable earnings for 2026
- SSA Social Security and Medicare tax rates – 6.2% and 1.45% employee rates
- IRS Topic 560, Additional Medicare Tax – 0.9% over $200,000
- IRS: 401(k) limit increases to $24,500 for 2026 – 2026 401(k) limits
- IRS Publication 15-T – the official withholding method, not used here