This calculator estimates federal income-tax withholding using the IRS Publication 15-T Percentage Method for Automated Payroll Systems, Social Security (OASDI) withholding, Medicare withholding, and Additional Medicare Tax withholding when applicable. It also applies pretax deductions that reduce taxable wages and post-tax deductions that reduce take-home pay. Results are educational estimates. Your employer's payroll system uses verified payroll data including your exact hire date, YTD figures, benefit elections, and state withholding setup, so actual paychecks will differ.
Paycheck and Take-Home Pay Calculator
Your gross pay is not the same as the amount deposited into your bank account. Payroll taxes and deductions reduce every paycheck before it reaches you. Federal income-tax withholding is based partly on the elections you make on Form W-4 — your filing status, the multiple-jobs checkbox, dependent credits, other income, deductions, and extra withholding each change the amount withheld. Social Security and Medicare taxes apply to their own separate wage amounts and follow different rules: the Social Security tax stops once your year-to-date wages reach the annual wage base; Medicare has no cap but adds a 0.9% Additional Medicare Tax once wages exceed an employer threshold.
Pretax deductions — such as traditional 401(k) contributions and Section 125 health premiums — may reduce some taxable-wage bases but not others. A traditional 401(k) deferral generally reduces federal income-tax withholding wages but does not reduce Social Security or Medicare wages. State and local withholding varies by jurisdiction and is not automatically calculated here; you can enter a manual estimate or select federal-only mode.
This calculator uses 2026 IRS Publication 15-T tables to estimate your paycheck. Results are educational estimates and will differ from your employer's actual payroll statement.
Reviewed by the Smart Finance Calculators Editorial Team · Last reviewed:
2026 — supported
Select how often you are paid.
$
Gross per paycheck
$2,884.62
Enter the elections on your current Form W-4. These affect only federal income-tax withholding, not Social Security or Medicare.
Enter the total dollar amount from W-4 Step 3, not the number of children.
$
Interest, dividends, retirement income not subject to withholding.
$
Amount from W-4 Deductions Worksheet if you itemize.
$
$
Payroll deduction tax treatment depends on the employer's plan and applicable tax rules. Confirm deduction amounts with your pay statement or payroll department.
Pretax: reduces fed wages
Pretax: reduces fed/SS/MC wages
State income-tax withholding is not included.
Paycheck breakdown
Annual estimates assume similar future paychecks with 26 pay periods per year. Simple annualization only — not a tax-return forecast.
| Component | Current paycheck | Monthly equivalent | Annualized estimate |
|---|---|---|---|
| Gross pay | $2,884.62 | $6,250.00 | $75,000.00 |
| Pretax deductions | −$294.23 | −$637.50 | −$7,650.00 |
| Federal withholding | −$366.50 | −$794.08 | −$9,529.00 |
| Social Security | −$169.55 | −$367.35 | −$4,408.20 |
| Medicare | −$39.65 | −$85.91 | −$1,030.95 |
| Net pay | $2,014.69 | $4,365.15 | $52,381.85 |
Current paycheck: Gross $2,884.62, Federal tax −$366.50, Social Security −$169.55, Medicare −$39.65, Net $2,014.69. Monthly equivalent net: $4,365.15. Annualized net: $52,381.85.
Scenario comparison
Worked example: $75,000 salary, biweekly, single filer, 2026
The following is computed by the live calculation engine using these inputs: tax year 2026 · annual salary $75,000 · biweekly (26 per year) · single filing status · multiple-jobs checkbox not selected · 5% traditional 401(k) contribution · $150 qualified health-insurance premium · W-4 Steps 3, 4(a), 4(b), 4(c) all zero · federal-only state mode · no YTD wages.
| Step | Description | Amount |
|---|---|---|
| 1 | Gross paycheck ($75,000 ÷ 26) | $2,884.62 |
| 2 | Less: Traditional 401(k) at 5% | −$144.23 |
| 3 | Less: Qualified health premium | −$150.00 |
| 4 | Federal withholding wages | $2,590.38 |
| 5 | Social Security wages (401k does not reduce SS) | $2,734.62 |
| 6 | Medicare wages | $2,734.62 |
| 7 | Federal income-tax withholding (est.) | −$366.50 |
| 8 | Social Security tax (6.2% × SS wages) | −$169.55 |
| 9 | Medicare tax (1.45% × MC wages) | −$39.65 |
| 10 | Net paycheck | $2,014.69 |
| 11 | Monthly equivalent (net × 26 ÷ 12) | $4,365.15 |
| 12 | Annualized take-home estimate (net × 26) | $52,381.85 |
Pretax deductions shown here: traditional 401(k) reduces federal wages only; health premium reduces federal, Social Security, and Medicare wages. Actual employer results will differ.
How is take-home pay calculated?
Take-home pay follows a straightforward formula:
Net pay = Gross pay − pretax deductions − federal withholding − Social Security − Medicare − state and local taxes − post-tax deductions
Pretax deductions (such as a 401(k) contribution or health premium) must still be subtracted from cash pay even though they reduce certain taxable-wage bases. They reduce what your employer withholds for certain taxes, but the money is still routed out of your paycheck — to a retirement account or benefit plan rather than to you directly.
This calculator estimates each component separately so you can see exactly where each dollar goes before the net amount reaches your bank account.
Gross pay versus taxable wages
Gross pay is your total compensation before any deductions. The calculator maintains four separate wage amounts because different taxes and withholding calculations use different starting points:
- Federal withholding wages: Gross pay minus deductions that reduce federal income-tax withholding (traditional 401(k) contributions, Section 125 health premiums, HSA, FSA, and similar qualifying pretax amounts).
- Social Security wages: Gross pay minus deductions that qualify to reduce FICA wages (primarily Section 125 plan premiums and HSA/FSA contributions). Traditional 401(k) deferrals do not reduce Social Security wages.
- Medicare wages: Calculated the same way as Social Security wages but without the annual wage-base cap. The Additional Medicare Tax applies to Medicare wages above the $200,000 per-employer threshold.
- State taxable wages: Calculated per state rules when a state module is active, or estimated from the wage base you select in manual mode.
This is why your W-2 can show different amounts in Box 1 (federal wages), Box 3 (Social Security wages), and Box 5 (Medicare wages).
How federal withholding is calculated
Federal income-tax withholding uses the IRS Publication 15-T Percentage Method. The calculator:
- Reduces gross pay by pretax deductions that exclude wages from federal withholding (such as traditional 401(k) contributions and Section 125 health premiums).
- Annualizes federal taxable wages by multiplying by pay periods per year, then adds Step 4(a) other income and subtracts Step 4(b) deductions.
- Looks up the tentative annual withholding in the withholding table for the filing status (standard table or Step 2 checkbox table).
- Subtracts the annualized Step 3 credits to produce net annual withholding.
- Divides by pay periods and adds Step 4(c) extra withholding per paycheck.
- Withholds a minimum of $0 — federal withholding never goes negative.
When the exempt election is selected, federal withholding is zero. Social Security and Medicare still apply.
Social Security and Medicare (FICA)
Social Security (OASDI): Employee rate 6.2% on wages up to $184,500 in 2026. Once year-to-date wages from the same employer reach $184,500, Social Security withholding stops. When the current paycheck crosses the limit, only the remaining taxable portion is taxed. Traditional 401(k) contributions do not reduce Social Security wages.
Regular Medicare: Employee rate 1.45% on all wages with no annual cap. Medicare wages are calculated separately from federal taxable wages and Social Security wages.
Additional Medicare Tax: Rate 0.9% on wages above the employer's $200,000 per-employer withholding threshold. This threshold does not depend on filing status. The final Additional Medicare Tax liability on your tax return uses filing-status thresholds ($200,000 single / $250,000 married jointly) and may differ from what your employer withheld.
2026 retirement and benefit limits
| Limit | 2026 amount |
|---|---|
| 401(k)/403(b)/457/TSP employee deferral | $24,500 |
| Standard catch-up (age 50+) | $8,000 |
| Enhanced catch-up (ages 60–63) | $11,250 |
| Social Security wage base | $184,500 |
| HSA self-only contribution | $4,400 |
| HSA family contribution | $8,750 |
| Health FSA | $3,300 |
| Dependent-care FSA | $5,000 |
| Additional Medicare withholding threshold (per employer) | $200,000 |
Annual limits apply to employee contributions only. Catch-up contributions and plan-specific rules may affect applicable limits. Verify with your plan documents.
What does Form W-4 control?
Form W-4 tells your employer how much federal income tax to withhold from each paycheck. It has no effect on Social Security or Medicare withholding. The current redesigned W-4 has five steps:
- Step 1 — Filing status: Single or MFS, Married filing jointly, or Head of household. Married filers withhold less than single filers at the same wage, since the joint brackets are wider.
- Step 2 — Multiple jobs / spouse works: Check this box if you hold more than one job at once or if you are married and both spouses work. Without it, each employer withholds as if it is your only income source, often leading to underwithholding.
- Step 3 — Dependent credits: Enter the annual dollar value of your child tax credit and other dependent credits here. This reduces withholding by the annual credit amount, spread across pay periods.
- Step 4(a) — Other income: Enter annual income not subject to withholding (interest, dividends, retirement distributions). This increases withholding to cover that income.
- Step 4(b) — Deductions: If you plan to itemize or have large above-the-line deductions, enter the excess above the standard deduction here to reduce withholding.
- Step 4(c) — Extra withholding: Add a fixed extra dollar amount to withhold per paycheck, useful if you have side income or want to avoid a balance due at filing.
Copy values from your actual W-4 when comparing this calculator's estimate against your pay stub. Do not enter your name, address, or Social Security number into this calculator.
Pretax retirement and benefit deductions
Traditional 401(k), 403(b), 457, and TSP deferrals are excluded from federal income-tax withholding wages under IRC § 401(k), but they are not excluded from Social Security or Medicare wages. Your W-2 will show a lower amount in Box 1 (federal wages) than Box 3 (Social Security wages) and Box 5 (Medicare wages) because of this difference.
Roth 401(k) and Roth 403(b) contributions are made after federal income tax has been withheld, so they do not reduce any taxable-wage base. They show as post-tax deductions here.
Health insurance, HSA, and FSA deductions made through a qualifying Section 125 cafeteria plan reduce federal withholding wages, Social Security wages, and Medicare wages simultaneously. Compare your pay stub's benefit deductions against the deduction types in this calculator to select the correct treatment. If your employer does not sponsor a Section 125 plan, premiums may be post-tax.
The 2026 employee deferral limit for 401(k), 403(b), 457, and TSP plans is $24,500 ($32,500 with the standard catch-up at age 50+; $35,750 with the enhanced catch-up for ages 60–63). The calculator does not automatically enforce contribution limits but will compute taxes on the deduction amount you enter.
Post-tax deductions
Post-tax deductions are subtracted from your paycheck after all taxes have been calculated. They do not reduce any taxable-wage base. Common examples include:
- Roth 401(k) or Roth 403(b) contributions
- Wage garnishments and court-ordered payments
- Union dues
- Charitable payroll deductions
- Employer-sponsored loan repayments
- Other voluntary post-tax benefit elections
Use the deduction manager in this calculator to add and categorize these items. Selecting the correct type ensures the tax treatment reflects your actual situation.
Federal withholding versus actual income tax
Paycheck withholding is a prepayment toward your expected annual income-tax liability. The amount withheld is based on your wages and W-4 elections, not on your final taxable income after all deductions and credits.
At year-end, your actual tax liability is calculated on your Form 1040 using your total income from all sources, standard or itemized deductions, credits, and adjustments. The difference between your annual withholding and your actual liability determines whether you receive a refund or owe additional tax. A lower per-paycheck withholding amount is not a tax saving; it is a change in when the money moves. See our marginal vs. effective tax rate guide for more detail.
Why results may differ from your pay stub
Several factors can cause this calculator's estimates to differ from your actual pay stub:
- Payroll rounding: Employers apply specific rounding rules to cents, which can cause small differences per paycheck.
- Different deduction treatment: Your employer's plan documents may treat certain benefits differently from the defaults in this calculator.
- Supplemental wage rates: Bonuses or commissions paid separately may be withheld at the 22% flat supplemental rate, not the annualized method used here.
- Imputed income: Employer-paid benefits like group life insurance above $50,000 are taxable and appear on your pay stub as income additions not entered here.
- Prior YTD wages: If you changed jobs during the year, each employer's payroll system tracks its own YTD separately; this calculator models one employer at a time.
- State and local rules: State withholding calculations vary significantly. Without a supported state module, state estimates here are manual approximations only.
- Midyear pay or W-4 changes: Employers apply updated W-4 elections prospectively from the date of change; this calculator applies them to every paycheck equally.
Privacy
Calculator values are processed locally in your browser and are not intentionally transmitted to our servers. This calculator does not require your name, email, address, Social Security number, employer name, employee ID, bank information, or account creation. Calculator values are not intentionally transmitted to our servers. See our Privacy Policy and Cookie Policy for details. Information intentionally submitted through the Contact page is transmitted so your request can be handled.
Sources and methodology
Federal withholding is calculated using the IRS Publication 15-T Percentage Method for Automated Payroll Systems. FICA wage bases are maintained separately from federal taxable wages per FICA rules. State estimates are shown only when a supported state module is active; otherwise manual entry only. Manual state withholding is supplied by the user and is not verified. Final taxes can differ from paycheck withholding.
- IRS Publication 15-T: Federal Income Tax Withholding Methods
- IRS Publication 15 (Circular E): Employer’s Tax Guide
- IRS Form W-4: Employee’s Withholding Certificate
- IRS Form W-4 Instructions
- IRS Publication 15-B: Employer’s Tax Guide to Fringe Benefits
- IRS Topic No. 751: Social Security and Medicare Withholding Rates
- IRS Instructions for Form 8959: Additional Medicare Tax
- IRS Rev. Proc. 2025-32: 2026 Inflation Adjustments (including FSA limits)
- IRS Notice 2025-67: 2026 Retirement-Plan Cost-of-Living Adjustments
- IRS Rev. Proc. 2025-19: 2026 HSA Contribution Limits
- Social Security Administration: 2026 Contribution and Benefit Base
Applicable federal tax year: 2026
Last reviewed: July 29, 2026
Federal withholding tables: IRS Publication 15-T Percentage Method · FICA wage base: Social Security Administration and IRS · Retirement limits: IRS Notice 2025-67 · HSA limits: IRS Rev. Proc. 2025-19
Frequently asked questions
The calculator implements the IRS Publication 15-T Percentage Method. Your gross pay is reduced by pretax deductions that reduce federal wages (such as traditional 401(k) contributions and Section 125 health premiums) to arrive at federal taxable wages. Those wages are annualized and adjusted by any Step 4(a) other income and Step 4(b) additional deductions. Tentative annual withholding is computed from the annual withholding tables for your filing status. Step 3 credits are subtracted, and the result is divided by your pay periods per year, then Step 4(c) extra withholding is added.
Biweekly pay means you receive a paycheck every two weeks — 26 paychecks per year. Semimonthly pay means you receive a paycheck twice per month, typically on the 1st and 15th — 24 paychecks per year. For a $75,000 annual salary, a biweekly paycheck would be $75,000 ÷ 26 ≈ $2,884.62 and a semimonthly paycheck would be $75,000 ÷ 24 = $3,125.00. Two months per year, biweekly employees receive three paychecks. Use the correct frequency to match your pay stub.
The Social Security (OASDI) wage base is the maximum amount of wages subject to Social Security tax in a calendar year. For 2026 the wage base is $184,500. Once your cumulative wages paid by the same employer exceed this amount, Social Security withholding stops for the remainder of the year. If you have multiple employers, each employer applies the wage base separately against the wages it pays, even though your combined wages may exceed it. Your annual tax return reconciles excess Social Security tax withheld.
The Additional Medicare Tax rate is 0.9% and applies to wages above a threshold. For employer withholding purposes, employers are required to withhold the additional 0.9% on wages paid to any employee that exceed $200,000 from that employer in a calendar year, regardless of filing status. This per-employer threshold is different from the filing-status thresholds ($200,000 single/$250,000 married jointly) used on the Form 8959 when you file your return, where combined income is used. If you have a working spouse or multiple jobs, your final Additional Medicare Tax liability may differ from what was withheld.
You should check the Step 2 box on your Form W-4 if you hold multiple jobs simultaneously or if you are married filing jointly and your spouse also works. When checked, it tells your employer to withhold at a higher rate appropriate for your combined-income situation. Without it, each job withholds as if it were your only source of income, which typically leads to underwithholding when multiple jobs push you into a higher bracket. This calculator does not determine what you should put on your W-4 — use it to model the withholding difference between checked and unchecked.
Traditional 401(k) employee contributions are excluded from federal income-tax withholding wages under IRC § 401(k), so they reduce the wages used for the withholding calculation. However, they are NOT excluded from wages subject to FICA (Social Security and Medicare taxes), so your employer still withholds Social Security and Medicare on the full pre-deferral amount. This is why your W-2 typically shows different amounts in Box 1 (federal wages) and Box 3 (Social Security wages).
This calculator does not calculate state withholding using state tables. You can select Federal only (no state withholding shown), or manually enter a fixed state amount or a percentage of federal wages or gross pay per paycheck. Actual state withholding requires your state's withholding tables, your state W-4 information, and state-specific rules that vary significantly. Consult your employer's payroll system or your state's revenue department for accurate state withholding.
Many factors can cause differences: your employer may have calculated year-to-date Social Security wages differently, your benefit elections may be slightly different amounts, your employer may apply withholding rounding rules, overtime rules, supplemental wage rates, or state tax may be calculated differently. Garnishments, child-support withholding orders, and other items may not be included here. Use this calculator as a planning estimate and verify against your actual pay stub.
For simplicity, this calculator treats bonuses and commissions entered in the hourly mode as combined with regular payroll wages and withholds federal income tax using the standard withholding calculation. Employers may instead use the flat supplemental wage rate of 22% for 2026 for separate bonus payments or use the aggregate method. If your employer withholds at the flat 22% rate on a separate bonus paycheck, the result from this calculator may differ from your actual bonus paycheck.
Take-home pay equals gross pay minus all payroll taxes (federal income-tax withholding, Social Security, Medicare, and any state or local taxes) minus pretax deductions (such as 401(k) contributions and health-insurance premiums) minus post-tax deductions (such as Roth contributions or garnishments). Enter your gross pay, pay frequency, and Form W-4 information into this calculator to estimate each deduction and the resulting net paycheck.
Gross pay is your total compensation before any taxes or deductions are removed — the full amount on your employment agreement. Net pay (take-home pay) is what you actually receive after federal income-tax withholding, Social Security, Medicare, state and local taxes, and payroll deductions are subtracted. The difference can be 25–40% or more of gross pay depending on your income level, filing status, and benefit elections.
Pay frequency affects the per-paycheck federal income-tax withholding because the IRS method annualizes your wages by multiplying by the number of pay periods. More pay periods mean smaller individual paychecks and lower annualized wages per check, which can land you in a lower bracket on the withholding table, slightly reducing per-paycheck withholding. Social Security and Medicare are flat-rate percentages of each paycheck's wages and are not affected by the number of pay periods in the same way.
Yes. You enter the same values from your current Form W-4: filing status (Step 1), the multiple-jobs or spouse-works checkbox (Step 2), dependent and other credits (Step 3), other income (Step 4a), additional deductions (Step 4b), and extra withholding per paycheck (Step 4c). Copying the exact values from your W-4 produces the most accurate estimate. If you have not updated your W-4 recently, the withholding estimate reflects your current elections, which may differ from your actual withholding if circumstances changed.
Federal withholding is an employer's estimate of the income tax you will owe annually, spread across your paychecks so it is paid throughout the year. Your marginal tax bracket is the rate applied to your last dollar of taxable income after all deductions are accounted for. Withholding is based on your gross wages plus W-4 elections and may not precisely match your actual tax liability. You reconcile the difference — either a refund or an amount due — when you file your annual tax return. See our guide on <a href="/guides/marginal-vs-effective-tax-rate" class="underline">marginal vs. effective tax rates</a> for a full explanation.
No, for traditional (pretax) 401(k) contributions. While traditional salary deferrals reduce federal income-tax withholding wages under IRC § 401(k), they do not reduce Social Security or Medicare wages. Your employer withholds FICA taxes on your full pre-deferral earnings. Roth 401(k) contributions are post-tax, so they do not reduce federal withholding wages either. Only deductions made through qualifying employer plans under Section 125 — such as health-insurance premiums and HSA contributions — can reduce FICA wages.
Health-insurance premiums paid through a qualifying employer Section 125 cafeteria plan are generally pretax for federal income-tax withholding, Social Security, and Medicare. This means they reduce federal taxable wages, Social Security wages, and Medicare wages simultaneously. Premiums paid outside a Section 125 plan are typically post-tax. This calculator defaults the "Qualified health-insurance premium" type to reduce all three wage bases; verify your plan type with your employer to confirm the correct treatment for your situation.
Employee HSA and health FSA contributions made through employer payroll are typically excluded from federal income-tax withholding wages, Social Security wages, and Medicare wages when made through a qualifying Section 125 cafeteria plan. The 2026 HSA limits are $4,400 for self-only coverage and $8,750 for family coverage. The 2026 health FSA limit is $3,300 per employee. The dependent-care FSA limit is $5,000. Contributions above these limits are taxable. Select the HSA or FSA deduction type in this calculator to apply the correct tax treatment.
Year-to-date wages affect two calculations: the Social Security wage-base cutoff and the Additional Medicare Tax employer threshold. If your YTD Social Security wages have already reached $184,500, no more Social Security tax is withheld this year. If your YTD Medicare wages exceed $200,000, the employer begins withholding the additional 0.9% rate. Without YTD data, this calculator assumes you have not yet reached either limit, which may overestimate Social Security withholding for high earners late in the year.
No. This calculator estimates per-paycheck withholding, not your final income-tax liability or refund. Whether you receive a refund or owe money depends on your total annual income from all sources, all applicable deductions and credits, and the cumulative withholding across all pay periods for the year. Withholding that is lower than your actual tax owed results in a balance due at filing; withholding that is higher results in a refund. A lower per-paycheck withholding amount is not a tax saving — it just shifts when the tax is collected.
Overtime wages are added to regular wages on the same paycheck and taxed together using the standard federal withholding method. The combined higher gross pay for that period may push the annualized amount into a higher withholding table bracket, resulting in more tax withheld on that check. However, overtime wages are not taxed at a separate or higher rate — the progressive bracket structure applies to the total combined wages. For 2026, employers may also use the 22% flat supplemental wage rate for separate overtime payments.
Yes, for modeling purposes. Enter different W-4 elections to see how they would change your estimated federal withholding. For example, you can compare withholding with and without the Step 2 multiple-jobs checkbox, or test different Step 3 credit amounts or Step 4(c) extra withholding. To actually change your withholding, submit an updated Form W-4 to your employer. The IRS also provides a Tax Withholding Estimator at irs.gov to help you determine the right W-4 elections for your full-year tax situation.
Related guides
- How Federal Income Tax Brackets WorkBeing "in the 22% bracket" does not mean you pay 22% on everything — here is how progressive tax really works.
- Marginal vs. Effective Tax RateYour marginal rate is not the percentage of your income you actually pay — here is the number that is.
- Gross Income vs. Taxable IncomeYour salary and your taxable income are rarely the same number — here is what happens in between.
Related calculators
Disclaimer
This calculator provides an educational payroll estimate based on user-entered information and selected tax-year assumptions. It is not payroll, accounting, tax, or legal advice. Actual withholding and take-home pay may differ because of employer payroll methods, benefit plans, state and local rules, year-to-date wages, and individual circumstances. Consult your employer's payroll department or a qualified tax professional for assistance with your specific situation.
Financial disclaimer: Results are estimates for educational purposes only and are not professional financial, tax, legal or investment advice. Figures may not reflect your exact situation. Consult a qualified professional before making financial decisions.