How this paycheck calculator works
TakeHome uses an annual-liability method: it works out what a full year of your pay would owe in each tax, then divides by the number of paychecks you get. That gives a stable, transparent number you can check line by line. It is not the IRS withholding method (Publication 15-T), which also depends on the entries on your W-4, so your employer’s withholding can differ slightly from period to period.
- Gross pay. Your salary, or hourly rate × hours × paid weeks, plus overtime at 1.5× for hours over 40 a week.
- Pre-tax deductions. Traditional 401(k) contributions (capped at the annual elective limit for your age) and Section 125 benefits such as health premiums, a health FSA or HSA contributions through payroll.
- Federal taxable income. Gross pay minus pre-tax deductions minus the standard deduction for your filing status, minus any 2025–2028 deductions you qualify for (senior, qualified overtime, qualified tips).
- Federal income tax. The 2026 brackets applied progressively, then the nonrefundable part of the Child Tax Credit, up to the tax you owe.
- FICA. Social Security up to the annual wage base and Medicare on all wages, plus the Additional Medicare Tax above the threshold for your filing status. Section 125 benefits reduce FICA wages; 401(k) deferrals do not.
- State and local. Your state’s own starting point, deductions or exemption credits and brackets, employee payroll taxes such as disability or paid-leave insurance, and local income tax where a state has one.
- After-tax deductions. Roth 401(k) contributions come out after tax, then what is left is your take-home pay.
Worked example: $65,000, single, paid biweekly in California
This is exactly what the calculator shows on load. It is computed by the same engine at build time, so the figures match the tool.
| Step | Annual | Per paycheck (26) |
|---|---|---|
| Gross pay | $65,000 | $2,500.00 |
| Standard deduction (single) | $16,100 | — |
| Federal taxable income | $48,900 | — |
| Federal income tax | $5,620 | $216.15 |
| Social Security | $4,030 | $155.00 |
| Medicare | $943 | $36.25 |
| California income tax | $1,873 | $72.04 |
| State Disability Insurance (SDI) | $845 | $32.50 |
| Take-home pay | $51,689 | $1,988.05 |
Total taxes come to $13,311, an effective rate of 20.5%. The marginal rate — tax on the next dollar earned — is 27.0%, because each extra dollar is taxed at your top federal bracket (12%) plus FICA and state tax. With no state income tax at all, the same pay would leave $54,408 a year.
The 2026 federal figures behind the numbers
These come from our federal dataset, read from IRS and Social Security Administration publications (sources on the methodology page).
| Item | Single | Married filing jointly | Head of household |
|---|---|---|---|
| Standard deduction | $16,100 | $32,200 | $24,150 |
| Additional Medicare Tax threshold | $200,000 | $250,000 | $200,000 |
- Social Security: 6.2% of wages up to $184,500.
- Medicare: 1.45% of all wages, plus 0.9% Additional Medicare Tax above the threshold.
- 401(k) elective deferral limit: $24,500 under age 50; $32,500 at 50–59 and 64+; $35,750 at 60–63.
- Child Tax Credit: up to $2,200 per qualifying child, phasing out above $200,000 ($400,000 married filing jointly).
Pre-tax vs after-tax deductions
| Deduction | Federal income tax | Social Security & Medicare | State income tax |
|---|---|---|---|
| Traditional 401(k) | Lowers it | No effect | Lowers it in most states |
| Section 125: health premiums, health FSA, HSA via payroll | Lowers it | Lowers it | Lowers it in most states |
| Roth 401(k) | No effect | No effect | No effect |
States that start from their own definition of income rather than federal adjusted gross income may not let you subtract 401(k) deferrals; when a state’s data says so, the calculator follows it and the assumption appears under the results.
State and local taxes
Our state dataset currently covers 51 jurisdictions: 9 with no tax on wages (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), 14 with a flat rate and 28 with graduated brackets. Employee payroll taxes such as disability or paid family leave insurance apply in Alaska, California, Colorado, Connecticut, Delaware, Hawaii, Massachusetts, Maine, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Washington. Mandatory local income taxes are modeled for Alabama, Colorado, Delaware, Indiana, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon, Pennsylvania; the locality selector appears when you pick one of these states.
Each state has its own page with the brackets, deductions, payroll taxes, sources and a worked example: see paycheck calculators by state.
Why your real paycheck may differ
- Your W-4. Extra withholding, other income or deductions entered on Form W-4 change what your employer withholds.
- Withholding tables vs annual tax. Payroll systems annualize each paycheck separately, so bonuses, commissions and uneven hours can be withheld at different rates.
- Benefits we don’t see. Taxable fringe benefits, union dues, garnishments and post-tax insurance all change the final number.
- Social Security cap timing. High earners stop paying Social Security once year-to-date wages reach the wage base, so late-year paychecks are larger; we spread the annual amount evenly.
- Refundable credits. Part of the Child Tax Credit can be refunded when you file; it is not in take-home pay.
If a decision depends on the exact figure — a relocation, a large bonus, a change in filing status — run the numbers past your payroll department or a tax professional.