Take-home pay is your gross pay minus federal income tax, Social Security tax, Medicare tax, and any applicable state or local taxes. For a single employee earning $60,000 a year on a biweekly schedule in 2026, the estimate works out to about $1,938 per paycheck — roughly 84% of gross. Here is how that number is built.
Step 1 — Start With Gross Pay
Gross pay is everything you earn before any deductions. For a salaried employee it is simply the annual salary divided by the number of pay periods: $60,000 ÷ 26 = $2,307.69 biweekly.
Hourly workers multiply their rate by hours worked. A 40-hour week at $20/hr is $800 gross per week. Use the paycheck calculator to enter any combination of salary, hours, and overtime.
Step 2 — Subtract Pre-Tax Deductions
Pre-tax deductions come out before taxes are calculated. Common ones:
- Traditional 401(k): lowers federal (and usually state) taxable wages
- Health, dental, and vision premiums paid through a Section 125 cafeteria plan
- Health FSA and HSA payroll contributions
These reduce the wage amount that income tax and FICA are calculated on. For this example assume no pre-tax deductions, so the full $60,000 is taxable for FICA and for federal income tax (after the standard deduction).
Step 3 — Calculate Federal Income Tax
The IRS taxes your income in layers called brackets. For tax year 2026 (Rev. Proc. 2025-32), the single-filer brackets are:
| Rate | Taxable income from… | to… |
|---|---|---|
| 10% | $0 | $12,400 |
| 12% | $12,400 | $50,400 |
| 22% | $50,400 | $105,700 |
| 24% | $105,700 | $201,775 |
| 32% | $201,775 | $256,225 |
| 35% | $256,225 | $640,600 |
| 37% | $640,600 | and above |
A single filer earning $60,000 first subtracts the 2026 standard deduction of $16,100 (Rev. Proc. 2025-32, §4.14):
- Adjusted gross income (AGI): $60,000
- Standard deduction: −$16,100
- Taxable income: $43,900
The tax is then layered:
- 10% on the first $12,400 = $1,240
- 12% on $12,400–$43,900 (= $31,500) = $3,780
- Federal income tax estimate: $5,020
Step 4 — Calculate FICA
FICA applies to the full $60,000 (pre-tax 401(k) and Section 125 deductions reduce it, but we have none here):
- Social Security: 6.2% × $60,000 = $3,720 (SSA, 2026 COLA Fact Sheet)
- Medicare: 1.45% × $60,000 = $870
- FICA total: $4,590
The Social Security tax stops at the $184,500 wage base; Medicare has no cap.
Step 5 — Add State and Local Taxes
State income taxes vary widely. This example uses no state to keep the math simple. For a state-level estimate, use the paycheck calculator and select your state.
Step 6 — Compute Net Pay
| Component | Annual | Per biweekly paycheck |
|---|---|---|
| Gross pay | $60,000 | $2,307.69 |
| Federal income tax | −$5,020 | −$193.08 |
| Social Security | −$3,720 | −$143.08 |
| Medicare | −$870 | −$33.46 |
| Take-home pay | $50,390 | $1,938.08 |
The effective federal tax rate (all federal taxes ÷ gross) is about 15.3% on this income. The marginal federal rate — the rate on the next dollar earned — is 12% (the bracket $43,900 of taxable income falls in).
What If You Have Pre-Tax Deductions?
Say you contribute $200 per pay period ($5,200/yr) to a traditional 401(k). Your FICA wages drop to $54,800 and your federal AGI drops to $54,800. After the $16,100 standard deduction, taxable income is $38,700:
- 10% × $12,400 = $1,240
- 12% × $26,300 = $3,156
- Federal tax: $4,396 — a saving of $624 vs. the no-401(k) case
The 401(k) contribution costs you $5,200 of take-home but saves $624 in federal tax (plus SS and Medicare savings), so the real out-of-pocket cost is about $4,576 — your spendable pay falls by less than the contribution.
Quick Summary
Take-home pay = Gross pay − federal income tax − Social Security − Medicare − state/local taxes − post-tax deductions.
The main variables are your filing status, gross wage, pre-tax deductions, state of residence, and any credits like the Child Tax Credit. For a precise estimate that includes your state, use the paycheck calculator.