How much is taken out depends on your filing status, income level, state of residence, and any deductions you have. For most employees in 2026, federal taxes — income tax plus FICA — remove 15–25% of gross pay. State taxes add another 0–10% depending on your state.
The Fixed Rates That Apply to Everyone
Two taxes apply at fixed rates to nearly all W-2 employees:
| Tax | Rate | 2026 wage limit |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Additional Medicare | +0.9% | Over $200,000 (single), $250,000 (MFJ) |
Source: SSA 2026 COLA Fact Sheet.
On a $60,000 salary these add up to: $3,720 SS + $870 Medicare = $4,590 per year or about 7.65% of gross.
Federal Income Tax: Depends on Your Bracket
Federal income tax uses a progressive system — only the income in each bracket is taxed at that bracket’s rate. After the 2026 standard deduction ($16,100 single / $32,200 married), the remaining taxable income is taxed in layers:
| Single filer annual gross | Approx. taxable income | Approx. federal income tax | Effective federal income tax rate |
|---|---|---|---|
| $30,000 | $13,900 | $1,420 | 4.7% |
| $50,000 | $33,900 | $3,820 | 7.6% |
| $75,000 | $58,900 | $7,670 | 10.2% |
| $100,000 | $83,900 | $13,170 | 13.2% |
| $150,000 | $133,900 | $24,734 | 16.5% |
| $200,000 | $183,900 | $36,734 | 18.4% |
Note: these are estimated annual liability figures using the standard deduction from Rev. Proc. 2025-32. Actual withholding may differ. See federal tax brackets 2026 for a full table.
Combined Federal Withholding by Income
Adding FICA to income tax gives the total federal take as a percentage of gross:
| Annual gross | Federal income tax | FICA | Total federal | Remaining |
|---|---|---|---|---|
| $40,000 | ~$2,620 (6.6%) | $3,060 (7.65%) | $5,680 (14.2%) | $34,320 |
| $60,000 | ~$5,020 (8.4%) | $4,590 (7.65%) | $9,610 (16.0%) | $50,390 |
| $80,000 | ~$8,770 (11.0%) | $6,120 (7.65%) | $14,890 (18.6%) | $65,110 |
| $100,000 | ~$13,170 (13.2%) | $7,650 (7.65%) | $20,820 (20.8%) | $79,180 |
All estimates, single filer, standard deduction, no state taxes.
State Taxes: The Wildcard
State income taxes range from zero to over 13%:
- No state income tax: Alaska, Florida, Nevada, New Hampshire (wages), South Dakota, Tennessee, Texas, Washington, Wyoming
- Flat-rate states: around 3–5% flat rate on all income
- High-tax states: California top rate 13.3%; New York top rate 10.9%
Some states also require employees to contribute to disability insurance or paid-leave programs. See the paycheck calculator to include your state’s rules.
What You Can Control
The main levers for reducing withholding legally:
- Pre-tax 401(k) contributions — lower federal income tax wages and state income tax wages (not FICA). Up to $24,500 in 2026 (plus catch-up if you are 50+).
- Section 125 premiums — health, dental, vision, FSA, and HSA contributions through payroll lower both income tax and FICA wages.
- Update your W-4 — claim dependents in Step 3, report deductions in Step 4b, or increase extra withholding in Step 4c.
- HSA contributions — up to $4,400 (self-only) or $8,750 (family) in 2026 per Rev. Proc. 2025-19, pre-tax through payroll.
For a complete breakdown showing every deduction for your specific salary and state, use the paycheck calculator.
How to Reduce the Amount Taken Out
If your withholding feels higher than necessary, these steps can help:
Update your W-4. If you got married, had a child, or bought a home since your last W-4, your withholding may be set too high. Submit a new W-4 to your employer. Adding eligible dependents in Step 3 (enter $2,200 per qualifying child under 17) directly reduces per-period withholding.
Contribute more to pre-tax accounts. Increasing your traditional 401(k) contribution lowers your federal (and usually state) taxable wages. The 2026 limit is $24,500 ($32,500 if you are 50 or older). Maximizing your HSA — $4,400 for self-only, $8,750 for family coverage per Rev. Proc. 2025-19 — reduces both income tax and FICA wages when contributed through payroll.
Claim new deductions. If you have qualifying overtime or tips in 2026, enter the expected deduction amounts on your W-4’s Deductions Worksheet so withholding is reduced during the year rather than waiting for a refund. See no tax on overtime explained and no tax on tips explained for eligibility rules.
Reducing withholding below your actual tax liability can create a balance due at filing. Use the IRS Tax Withholding Estimator to confirm any changes keep you on track.