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Paychecks
How gross pay becomes take-home pay: withholding, pay stubs, pay frequency and why a paycheck can look smaller than expected.
Biweekly vs. Semimonthly Pay: What's the Difference?
Biweekly means 26 paychecks a year; semimonthly means 24. Annual pay is identical, but per-paycheck amounts differ. Here's how to compare them.
Gross vs. Net Pay: What's the Difference?
Gross pay is what you earn before deductions; net pay is what lands in your bank. For a $75,000 salary, expect roughly $62,000 net — here's the breakdown.
How Much Is Taken Out of My Paycheck?
Federal taxes take 15–25% of most paychecks in 2026. Social Security is 6.2%, Medicare 1.45%, plus your federal income tax bracket and any state taxes.
How Paychecks Are Taxed
Employers withhold federal income tax using IRS Publication 15-T, plus 6.2% Social Security and 1.45% Medicare from every paycheck. Here's how it works in 2026.
How to Calculate Take-Home Pay
Take-home pay equals gross pay minus federal income tax, FICA, and any state taxes. Step-by-step example for a $60,000 salary in 2026.
How to Read a Pay Stub
A pay stub shows gross pay, every tax and deduction, and net pay for the period and year-to-date. Learn what each line means and how to spot errors.
What to Expect From Your First Paycheck
First paycheck smaller than expected? Taxes take 15-20% and benefits add more. A $50k salary nets about $1,629 per biweekly check (federal taxes only).
Why Is My Paycheck Smaller Than Expected?
Common reasons: taxes weren't factored in, a pre-tax deduction enrollment, a pay frequency change, or reaching the SS wage base. Here's how to diagnose each.
Federal income tax
Brackets, the standard deduction, marginal vs effective rates, the W-4, credits and the 2025–2028 deductions for overtime, tips and seniors.
Child Tax Credit 2026: $2,200 Per Child
The 2026 Child Tax Credit is $2,200 per child under 17, up to $1,700 refundable. Phase-out: $200k single / $400k MFJ. Source: Rev. Proc. 2025-32.
Federal Tax Brackets 2026
2026 federal tax brackets: 10%–37% for all filing statuses. Single 22% bracket starts at $50,400 taxable income. Full tables from Rev. Proc. 2025-32.
How to Fill Out a W-4 in 2026
The 2026 W-4 has 5 steps. Most employees complete Steps 1 and 5 only. Step 3 adds dependents; Step 4 adjusts for other income or extra withholding.
Marginal vs. Effective Tax Rate: What's the Difference?
Marginal rate is the tax on your next dollar earned; effective rate is total tax divided by total income. A $100k single filer: 22% marginal, 13.2% effective.
No Tax on Overtime: How the 2026 Deduction Works
The 2026 overtime deduction (P.L. 119-21) lets qualifying workers deduct up to $12,500 or $25,000 MFJ of FLSA overtime premium. FICA still applies.
No Tax on Tips: How the 2026 Deduction Works
The 2026 tips deduction (P.L. 119-21) lets qualifying tipped workers deduct up to $25,000 of tips from federal income tax. FICA still applies to all tip income.
Senior Deduction 2026: $6,000 for Taxpayers 65 and Older
New $6,000 per-person deduction for taxpayers 65+ (2025-2028). Phases out at 6% of MAGI above $75k single / $150k MFJ. Stacks on standard deduction.
Standard Deduction 2026: Amounts by Filing Status
The 2026 standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household, per Rev. Proc. 2025-32.
Social Security & Medicare
FICA payroll taxes: Social Security, the wage base, Medicare and the Additional Medicare Tax.
FICA Tax Explained: Social Security and Medicare
FICA is 7.65% of wages for employees — 6.2% Social Security (up to $184,500) plus 1.45% Medicare on all wages. Self-employed workers pay 15.3%.
Medicare Tax and the Additional Medicare Tax in 2026
Medicare tax is 1.45% on all wages with no cap. Single filers pay 0.9% extra on wages above $200,000. The combined rate can reach 2.35%.
Social Security Tax 2026: Rates, Wage Base, and Max
For 2026, Social Security tax is 6.2% on wages up to $184,500. Employees pay up to $11,439. Self-employed workers pay 12.4% on 92.35% of net earnings.
Social Security Wage Base 2026: $184,500 Explained
The 2026 Social Security wage base is $184,500 — up from $176,100 in 2025. Wages above this limit are not subject to the 6.2% Social Security tax.
State & local taxes
State income tax types, no-tax states, flat-tax states, disability and paid-leave payroll taxes, and local income taxes.
Flat Tax States 2026: Rates and Take-Home Impact
Fourteen states use a single flat income tax rate in 2026, ranging from 2.5% in Arizona to 5% in Massachusetts. Rates and take-home examples from official data.
Highest State Income Tax Rates 2026
California's 12.3% tops the nation for wage earners in 2026. Here are the 11 states where top income tax rates exceed 6%, with official bracket data.
Local Income Taxes Explained (2026)
Some cities and counties add a local income tax on top of state and federal taxes. NYC, Philly, Indiana counties, Detroit, and more — how each works in 2026.
Moving to a No-Income-Tax State: Take-Home Savings
Moving from California to Texas on $80,000 saves about $4,100 per year in state taxes. Engine-computed comparisons, part-year rules, and what's not modeled.
Paid Family Leave Payroll Taxes 2026
Eleven states deduct paid family and medical leave premiums from paychecks in 2026. Rates, wage bases, and annual caps from official sources, state by state.
State Disability Insurance (SDI) Explained
Five states withhold State Disability Insurance from paychecks in 2026 — CA, HI, NJ, NY, and RI. Rates, wage bases, and annual maximums from official data.
States With No Income Tax in 2026
Nine states — AK, FL, NH, NV, SD, TN, TX, WA, and WY — tax no wages in 2026. See what each taxes instead and what payroll deductions still apply.
Working in One State, Living in Another
Work in one state, live in another? Reciprocity agreements, credits for taxes paid, and New York's convenience-of-the-employer rule — explained for 2026.
Pay types
Hourly vs salary, overtime, bonuses, raises, commission and tips — and how each is taxed.
Hourly to Salary Conversion: How to Calculate
Multiply your hourly rate by 2,080 (40 hrs × 52 weeks) for your full-time annual salary. Divide an annual salary by 2,080 to find the hourly equivalent.
How Bonuses Are Taxed in 2026
Bonuses are withheld at 22% flat federal rate (37% above $1M). Your actual tax depends on your income bracket and is settled at filing — not at withholding.
How Commission Is Taxed on Your Paycheck
Commissions are wages taxed as ordinary income. Employers withhold 22% flat (37% above $1M) on separate checks. Final tax depends on your total income.
How Overtime Pay Works: FLSA Rules and Taxes
FLSA requires 1.5× regular rate for hours over 40 per workweek. A 2025–2028 deduction exempts the OT premium (up to $12,500) from federal income tax.
How Tips Are Taxed on Your Paycheck
Tips are wages subject to federal income tax and FICA. A 2025–2028 deduction of up to $25,000 can offset income tax on tips in qualifying occupations.
How to Calculate the Net Value of a Raise
Taxes take a share of every raise. From $60k to $70k (single filer), you keep roughly 77 cents of each extra dollar after federal taxes and FICA.
Self-employed
Self-employment tax, quarterly estimated payments and 1099 vs W-2 take-home pay.
1099 vs. W-2 Take-Home Pay: What's the Real Difference?
At equal gross income, a 1099 worker takes home less than a W-2 employee because they pay both halves of FICA. At $80k, the gap is roughly $3,900 per year.
Quarterly Estimated Taxes: Due Dates and Safe Harbor
Pay quarterly by April 15, June 15, September 15, January 15. Safe harbor: 90% of current-year tax or 100%/110% of last year's.
Self-Employment Tax Explained: Rates and How It Works
Self-employment tax is 15.3% on 92.35% of net earnings — covering both halves of Social Security and Medicare. Half of SE tax is deductible from income.
Benefits & retirement
How 401(k), Roth, HSA and FSA contributions change your paycheck and your tax bill.
How 401(k) Contributions Affect Your Take-Home Pay
Traditional 401(k) cuts taxable income but not FICA wages. At $70k, a 6% contribution ($162/paycheck) only reduces take-home by $129 — taxes offset the rest.
HSA and FSA: How They Save Money on Your Paycheck
HSA contributions (up to $4,400 self-only or $8,750 family in 2026) and FSA contributions (up to $3,400) reduce both income tax and FICA — unlike a 401(k).
Roth vs. Traditional 401(k): Paycheck Impact
Traditional 401(k) costs less per paycheck than Roth due to the current tax break. At $70k with $7,000 contributed, traditional saves $46 per biweekly check.