How your paycheck is calculated
Your employer withholds four things from every paycheck: federal income tax, Social Security, Medicare and — unless you work in one of the 9 states with no income tax on wages — state income tax. What is left is your take-home (net) pay.
Federal tax applies progressive brackets to your income after the standard deduction ($16,100 single in 2026). Social Security is a flat 6.2% on wages up to $184,500; Medicare is 1.45% on all wages, plus 0.9% above $200,000.
States take one of three approaches to wages: 9 charge no income tax at all, 11 apply a single flat rate, and the rest run their own progressive brackets. The District of Columbia taxes income like a state. Pick your state in the calculator to see which applies, or compare them side by side on the take-home pay by state page.
Worked example: $60,000 in Texas, single, paid bi-weekly
Gross pay per paycheck is $60,000 ÷ 26 = $2,307.69. Taxable income is $60,000 − $16,100 = $43,900, giving $5,020 of federal tax a year ($193.08 per paycheck). FICA takes $176.54 per paycheck, and Texas has no state income tax — so net pay is $1,938.08 per paycheck, or $50,390 per year. That is an effective tax rate of 16.0% on a federal marginal rate of 12%.
2026 federal tax brackets (single)
| Rate | Taxable income |
|---|---|
| 10% | up to $12,400 |
| 12% | $12,400 – $50,400 |
| 22% | $50,400 – $105,700 |
| 24% | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 |
| 35% | $256,225 – $640,600 |
| 37% | over $640,600 |
Married filing jointly and head of household use the same rates over wider bands, with standard deductions of $32,200 and $24,150. Switch filing status in the calculator to see the effect. Full details are on our methodology page.
Frequently asked questions
Why is my actual paycheck slightly different?
This is an annual estimator: it works out your 2026 tax for the year and spreads it evenly across pay periods. Your employer withholds using the IRS Publication 15-T tables and your W-4 elections, so a real pay stub can differ by a few dollars. Benefit premiums and local taxes also change the number.
How much tax comes out of a $60,000 salary?
For a single filer in a state with no income tax: about $5,020 in federal income tax plus $4,590 in Social Security and Medicare — 16.0% of gross pay in 2026. Take-home pay is $50,390 a year.
What is the 2026 standard deduction?
$16,100 for single filers, $32,200 married filing jointly and $24,150 head of household (IRS Rev. Proc. 2025-32 (tax year 2026 inflation adjustments) and SSA 2026 wage base announcement).
Does this include local or city taxes?
No. Some cities and counties — New York City, Philadelphia and most Indiana counties among them — levy their own income taxes, and they are not modelled here. Neither are tax credits, itemised deductions or state disability contributions.
Related tools
- Take-home pay by state — the same salary compared across every state we have verified
- Texas take-home pay calculator — no state income tax
- California take-home pay calculator — California state tax on your paycheck
- New York take-home pay calculator — New York state tax on your paycheck