Paycheck Calculator 2026

What Is Take-Home Pay?

Your take-home pay — also called net pay — is what lands in your bank account after your employer withholds all taxes and deductions. For most Americans, take-home pay is significantly less than gross salary. Understanding the difference helps you budget accurately and plan your finances around what you actually receive.

Federal Income Tax Withholding

Your employer withholds federal income tax from every paycheck based on your W-4 form and filing status. The 2026 federal tax brackets range from 10% on the first $11,925 of taxable income (single) up to 37% on income above $626,350. Importantly, these are marginal rates — only the income within each bracket is taxed at that rate, not your entire salary.

FICA Taxes: Social Security and Medicare

FICA taxes are split equally between you and your employer. You pay 6.2% of gross wages for Social Security (up to the 2026 wage base of $176,100) and 1.45% for Medicare on all wages. High earners above $200,000 (single) or $250,000 (married) pay an additional 0.9% Additional Medicare Tax. These taxes fund Social Security retirement benefits and Medicare health coverage.

State Income Tax

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. The remaining 41 states plus DC levy their own income tax, ranging from a flat 2.5% in Arizona to a progressive rate reaching 13.3% in California. Your state income tax is calculated on your taxable income after the standard deduction.

Pre-Tax Deductions That Reduce Your Tax Bill

Contributing to a 401(k) or similar employer retirement plan reduces your taxable income dollar-for-dollar. In 2026, you can contribute up to $24,500 (or $32,500 if you're 50 or older). Health insurance premiums paid through your employer are also typically pre-tax, reducing your federal, state, and FICA taxes simultaneously. These deductions are one of the most powerful tools for legally reducing your tax burden.

The 2026 One Big Beautiful Bill Act Changes

The OBBBA signed in July 2025 brought several changes affecting 2026 paychecks. Tips received by service workers are now deductible up to $25,000. Overtime pay is deductible up to $12,500 for single filers. Workers 65 and older receive an additional $6,000 senior deduction. These changes reduce taxable income for millions of American workers.

Pay Frequency and Your Paycheck Amount

Your gross annual salary divided by the number of pay periods gives your gross per-paycheck amount. Common pay frequencies: weekly (52 paychecks), bi-weekly (26 paychecks), semi-monthly (24 paychecks), and monthly (12 paychecks). Bi-weekly is most common in the US. Note that bi-weekly employees receive 3 paychecks in two months each year, which can help with budgeting larger expenses.