Enter either an hourly rate or an annual salary — the calculator converts both ways instantly. Adjust hours per week and weeks per year for part-time or variable schedules.
Calculate your net pay after federal income tax, Social Security (6.2% on first $184,500), Medicare (1.45%), and estimated state tax. Optionally include 401(k) pre-tax contributions.
See the exact dollar impact of a pay raise across every pay period. Enter a percentage or fixed dollar raise. Compare before vs after across weekly, biweekly, monthly, and annual pay.
Compare two job offers side-by-side — one may be hourly, one salaried. Both are converted to a common annual basis so you can compare fairly. Include overtime potential for hourly roles.
Enter any pay amount in any period — hourly, daily, weekly, biweekly, semimonthly, monthly, or annual — and see all equivalents instantly.
| Pay Period | Gross Amount | Paychecks/Year |
|---|
How Take-Home Pay is Calculated in 2026 — Formulas, Tax Rates & Examples
Your gross salary and your net take-home pay can differ by 20–35%. Here's exactly what gets deducted, how each piece is calculated, and the 2026 figures that affect every US paycheck.
The Take-Home Pay Formula
Net Pay = Gross Salary − Federal Income Tax − Social Security − Medicare − State Tax − Pre-Tax Deductions
Every deduction is calculated separately. Federal income tax uses progressive brackets. FICA (Social Security + Medicare) is a flat rate. State tax varies by state. Pre-tax 401(k) and health insurance contributions reduce your federal and state taxable income — but not your FICA base.
Step 1 — Federal Income Tax (2026 Brackets)
Federal tax uses a progressive bracket system. You subtract the 2026 standard deduction ($16,100 single / $32,200 married filing jointly under the One Big Beautiful Bill Act) and any pre-tax 401(k) contributions from your gross salary to get taxable income. Then each portion of that taxable income is taxed at its bracket rate — only the income within each bracket, never your whole salary at one rate.
| 2026 Bracket — Single Filer | Rate | Tax on This Slice |
|---|---|---|
| $0 – $11,925 | 10% | Up to $1,192.50 |
| $11,926 – $48,475 | 12% | Up to $4,386.00 |
| $48,476 – $103,350 | 22% | Up to $12,073.88 |
| $103,351 – $197,300 | 24% | Up to $22,548.00 |
| $197,301 – $250,525 | 32% | Up to $17,031.04 |
| $250,526 – $626,350 | 35% | Up to $131,548.40 |
| Over $626,350 | 37% | 37¢ on every dollar above |
Step 2 — FICA: Social Security & Medicare (2026)
Social Security: 6.2% on wages up to $184,500 (2026 wage base — up from $176,100 in 2025). Once your cumulative annual wages exceed $184,500, Social Security withholding stops for the rest of the year. Your Q4 paychecks will be noticeably larger if you earn above this threshold.
Medicare: 1.45% on all wages — no cap. An additional 0.9% surtax applies on wages above $200,000 (single) or $250,000 (married filing jointly). This surtax is collected by the employer once the threshold is crossed, though final reconciliation happens on your tax return.
Combined FICA for most workers: 7.65% (6.2% + 1.45%) on wages up to $184,500.
Step 3 — State Income Tax
State rates range from 0% (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming) to 13.3% at the top marginal rate in California. Most states use progressive brackets like the federal system. The calculator lets you enter any state rate as a flat percentage — use your marginal state rate for a conservative estimate or your effective state rate for a closer net pay figure. Common benchmarks: ~5% covers most Midwest and Southeast states; ~7% fits New England; CA residents at $100k+ often see ~9.3%.
Step 4 — How 401(k) Contributions Increase Your Net Pay
Pre-tax (traditional) 401(k) contributions reduce your federally and state-taxable income. Example: a $500/biweek contribution at 22% federal + 5% state marginal rates = $135 in tax savings per paycheck. Your take-home only drops by $365 — not the full $500. The 2026 employee 401(k) limit is $23,500 ($31,000 if you're 50+). This makes maxing your 401(k) one of the highest-return moves available — you're effectively getting a 27%+ immediate return (your marginal tax rate) on every dollar contributed.
Worked Example — $75,000 Salary, Single, 5% State Tax, No 401(k)
Taxable income = $75,000 − $16,100 (std deduction) = $58,900. Federal tax ≈ $8,774. Social Security = $75,000 × 6.2% = $4,650. Medicare = $75,000 × 1.45% = $1,088. State tax = $75,000 × 5% = $3,750. Total deductions = $18,262. Annual net take-home ≈ $56,738. Biweekly take-home ≈ $2,182. Effective tax rate ≈ 24.3%.