Most Americans see their pay shrink by a fifth to a third between the offer letter and the bank account, and very few could explain exactly where it goes. This guide walks through every deduction on a US paycheck in 2026, in the order they’re calculated, with real numbers. By the end you’ll be able to check your own pay stub line by line, and you’ll know which levers actually change your take-home pay.
The big picture
Every US paycheck goes through the same pipeline:
- Gross pay. Your salary or hours × rate, plus overtime, bonuses and commissions.
- Pre-tax deductions come off first: traditional 401(k), health insurance premiums, HSA and FSA contributions, commuter benefits.
- Federal income tax is withheld according to your W-4 and the IRS tables.
- FICA: 6.2% Social Security and 1.45% Medicare.
- State and local income tax, depending on where you live and work.
- State payroll programs such as disability insurance or paid family leave in some states.
- After-tax deductions such as Roth 401(k), union dues or wage garnishments.
What’s left is your net pay. Try the calculator below with your own salary, then read on to understand each line.
From gross pay to taxable income
Income tax is never charged on your full salary. For federal purposes you first subtract pre-tax deductions, then the standard deduction, which for 2026 is $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household. About 90% of taxpayers take the standard deduction rather than itemizing.
So a single person on a $75,000 salary with no pre-tax deductions has federal taxable income of $75,000 − $16,100 = $58,900. That is the number the brackets apply to.
Social Security and Medicare are different: they’re charged on your wages before the standard deduction, and 401(k) contributions don’t reduce them (health insurance and HSA contributions through a cafeteria plan do).
Federal income tax and the 2026 brackets
The US uses progressive brackets: each rate applies only to the slice of taxable income inside its band. Moving into a higher bracket never reduces your take-home pay, because only the dollars above the threshold are taxed at the higher rate. The 2026 brackets (from IRS Revenue Procedure 2025-32) are:
| Rate | Single (taxable income) | Married filing jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Example: on $58,900 of taxable income a single filer pays 10% on the first $12,400 ($1,240), 12% on the next $38,000 ($4,560) and 22% on the last $8,500 ($1,870), a total of $7,670. That’s 10.2% of the $75,000 salary, even though the person is “in the 22% bracket”.
This is why it’s worth knowing two numbers:
- Effective tax rate: total tax ÷ salary. It tells you what you pay overall.
- Marginal tax rate: the rate on your next dollar. It tells you what a raise, bonus or extra 401(k) contribution is worth.
Credits such as the Child Tax Credit then reduce the tax itself, dollar for dollar. They aren’t included in our figures, which assume no dependents.
Social Security and Medicare (FICA)
FICA funds Social Security and Medicare and is split between you and your employer:
| Tax | Employee rate | Wage limit (2026) |
|---|---|---|
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | No limit |
| Additional Medicare Tax | 0.9% | Wages above $200,000 (single) or $250,000 (joint) |
Your employer pays a matching 6.2% and 1.45% that never appears on your stub. Self-employed people pay both halves. See our freelancer tax guide.
Because Social Security stops at $184,500, people who earn more than that see their paychecks rise once they hit the cap, often in the last months of the year.
State income tax
States set their own rules, and the range is enormous:
- No wage income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
- Flat taxes: one rate for everyone, e.g. Arizona 2.5%, Colorado 4.4%, Illinois 4.95%, Pennsylvania 3.07%, North Carolina 3.99%.
- Graduated taxes: brackets like the federal system. California reaches 13.3%, and New York, New Jersey, Hawaii and Oregon all top 9%.
States also have their own standard deductions or personal exemptions, and a handful have quirks: Alabama lets you deduct federal income tax, Pennsylvania taxes 401(k) contributions, and New York and Connecticut “recapture” the benefit of lower brackets from high earners. On a $75,000 salary the gap between the cheapest and most expensive state is $5,587 a year. See every state ranked.
City and local taxes
About a dozen states allow local income taxes. The best known are:
- New York City: 3.078% to 3.876% on top of New York State tax.
- Maryland counties: every county and Baltimore City add 2.25%–3.30%.
- Ohio, Pennsylvania, Michigan, Kentucky, Indiana and Missouri have city, county or school-district taxes in many places, typically 1%–2.5%.
Our calculator includes NYC and Maryland automatically and lets you enter any other local rate under “More options”.
State payroll programs
Some states fund disability or family-leave benefits through small employee payroll deductions. In 2026 the main ones are California SDI (1.3% of all wages), New Jersey disability and family leave insurance, New York disability and paid family leave, Washington paid leave and WA Cares (0.58%), Massachusetts, Oregon, Rhode Island, Colorado, Connecticut, Maine, Minnesota and Hawaii. They’re usually under 1% of pay, but California’s SDI has no cap, so it costs $1,950 on a $150,000 salary.
Pre-tax deductions that lower your tax
Pre-tax deductions are the most powerful legal way to raise take-home pay relative to what you save:
| Deduction | Saves income tax? | Saves FICA? | 2026 limit |
|---|---|---|---|
| Traditional 401(k) / 403(b) | Yes | No | $24,500 (plus catch-up if 50+) |
| Health, dental, vision premiums (Section 125) | Yes | Yes | Plan cost |
| HSA through payroll | Yes | Yes | Set annually by the IRS |
| Health FSA | Yes | Yes | Set annually by the IRS |
| Commuter benefits | Yes | Yes | Monthly limit set by the IRS |
Example: in Illinois on $75,000, putting 10% into a traditional 401(k) moves $7,500 into retirement savings but only lowers take-home pay by $5,479, because federal and state income tax fall by $2,021.
Withholding, the W-4 and refunds
Your employer doesn’t know your final tax bill, so it estimates it from your Form W-4 and the IRS withholding tables in Publication 15-T. A tax refund simply means you over-paid during the year. A bill means you under-paid. Neither is a bonus or a penalty in itself.
- Got a big refund? Use the IRS Tax Withholding Estimator and adjust your W-4 to get the money in each paycheck instead.
- Have two jobs, or a working spouse? Tick the “two jobs” box or use the worksheet, otherwise each employer withholds as if it were your only income and you’ll likely owe.
- Bonuses are usually withheld at a flat 22% federal rate. Read why.
A full worked example
Let’s follow a single filer in Illinois earning $75,000 with no pre-tax deductions through the whole calculation:
| Step | Amount |
|---|---|
| Gross salary | $75,000 |
| − Standard deduction | $16,100 |
| = Federal taxable income | $58,900 |
| Federal income tax | $7,670 |
| Social Security (6.2%) | $4,650 |
| Medicare (1.45%) | $1,088 |
| Illinois income tax (4.95% after the $2,925 exemption) | $3,568 |
| Take-home pay | $58,025 |
| Per month | $4,835 |
| Per biweekly paycheck | $2,232 |
Take-home pay at common salaries
| Salary | Texas (no state tax) | Illinois | California | New York City |
|---|---|---|---|---|
| $30,000 | $26,285 | $24,945 | $25,670 | $24,356 |
| $50,000 | $42,355 | $40,025 | $40,656 | $38,497 |
| $75,000 | $61,593 | $58,025 | $57,830 | $55,312 |
| $100,000 | $79,180 | $74,375 | $72,810 | $70,436 |
| $150,000 | $113,791 | $106,511 | $102,121 | $99,678 |
| $250,000 | $183,182 | $170,952 | $160,912 | $157,537 |
For deeper breakdowns see our guides to $50,000, $100,000, $150,000 and $200,000 after tax.
10 ways to keep more of your paycheck
- Capture the full 401(k) match. It’s an instant 50–100% return.
- Raise 401(k) contributions by 1% a year, ideally with each raise.
- Use an HSA if you have a qualifying health plan. It is the only account that skips income tax and FICA on the way in and is tax-free for medical costs on the way out.
- Choose pre-tax benefits such as commuter benefits and FSAs during open enrollment.
- Fix your W-4 so you’re not lending the IRS money interest-free.
- Claim every credit: Child Tax Credit, Earned Income Tax Credit, education credits and the Saver’s Credit.
- Check your state residency if you work remotely. You may owe tax only where you live.
- Negotiate benefits as well as salary. Employer-paid health premiums and retirement contributions are worth more than the same amount in taxable pay.
- Time bonuses and raises around big income swings where you can.
- Review your stub every January, when new limits, brackets and benefit elections take effect.
Pay frequency: weekly, biweekly, semi-monthly or monthly
How often you’re paid changes the size of each check but not your annual tax. A $75,000 salary in Texas works out as:
| Pay schedule | Paychecks a year | Gross per check | Take-home per check |
|---|---|---|---|
| Weekly | 52 | $1,442 | $1,184 |
| Biweekly | 26 | $2,885 | $2,369 |
| Semi-monthly | 24 | $3,125 | $2,566 |
| Monthly | 12 | $6,250 | $5,133 |
Biweekly is the most common US schedule. It means two months a year have three paydays, which is handy for budgeting: plan on two checks a month and treat the third as savings.
Decoding the codes on your pay stub
| On your stub | What it means |
|---|---|
| FIT / Fed W/H | Federal income tax withheld |
| OASDI / SS | Social Security (6.2%) |
| MED / Medicare | Medicare (1.45%, plus 0.9% above $200,000) |
| SIT / ST W/H | State income tax |
| SDI / VPDI / PFL / FLI | State disability or paid family leave insurance |
| LOCAL / CITY / SD | City, county or school district tax |
| 401K / 403B | Pre-tax retirement contribution |
| ROTH 401K | After-tax retirement contribution |
| SEC 125 / MED PRE | Pre-tax health premiums |
| YTD | Year-to-date total |
Overtime, bonuses and side income
Overtime is ordinary wages: it’s withheld through the normal tables, which can make an overtime-heavy check look over-taxed. The annual result evens out. A federal deduction for qualified overtime premium pay runs from 2025 to 2028 and is claimed on your return. Bonuses are usually withheld at a flat 22% federal rate. Side income from freelancing has no withholding at all, so either increase your W-4 withholding (Step 4c) or make quarterly estimated payments.
Key dates for 2026 paychecks
| When | What happens |
|---|---|
| January | New brackets, standard deduction, 401(k) and Social Security limits take effect; W-2s arrive by January 31 |
| April 15, 2026 | Deadline to file 2025 returns and make 2025 IRA/HSA contributions |
| Open enrollment (usually Nov) | Choose pre-tax benefits for the next year |
| When you hit $184,500 | Social Security withholding stops for the year |
| October–November | IRS announces 2027 inflation adjustments |
Common paycheck mistakes
- Not updating your W-4 after marriage, a new baby, a second job or a spouse starting work.
- Moving states without telling payroll, so the wrong state tax is withheld.
- Missing the 401(k) match by contributing less than the employer matches.
- Ignoring pre-tax benefits such as commuter and FSA accounts at open enrollment.
- Assuming a raise pushed you into a worse position. Marginal brackets mean it can’t.
Frequently asked questions
What percentage of my paycheck goes to taxes?
For a single filer it’s roughly 15% at $50,000, 21% at $100,000 and 26% at $200,000 in a no-income-tax state, plus your state’s share elsewhere.
Why is my first paycheck smaller than expected?
Benefit premiums, a partial pay period, or a W-4 with extra withholding are the usual culprits. Compare it line by line with the calculator.
Does a raise ever reduce my take-home pay?
No. Federal and state brackets are marginal, so only the extra dollars are taxed at the higher rate. Some benefits with income cliffs (like certain subsidies) are the rare exception.
Is the standard deduction better than itemizing?
For most people, yes. Itemize only if your mortgage interest, state and local taxes (up to the cap), charitable gifts and medical costs together exceed it.
When do 2027 brackets come out?
The IRS usually publishes next year’s inflation adjustments in October or November. We update the calculators as soon as they’re released.
