What comes out of a US paycheck in 2026, and why

Guide · Updated 2026-11-10

Follow 2026 pay from gross to net: the standard deduction, federal brackets, the child tax credit, Social Security, Medicare, 401(k), HSA and state tax, with a worked family example.

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The gap between your salary and the deposit in your bank can be a third of your pay or more, and the paycheck stub rarely explains why. The US paycheck calculator follows 2026 pay from gross to net: federal income tax, Social Security, Medicare, 401(k), HSA, health premiums and state income tax, spread over your pay schedule. It is for new hires reading their first offer, families checking what a child credit does, and anyone deciding how much to put into a 401(k). If you are paid by the hour, turn your wage into a yearly figure with the salary converter tool first, and if you are torn between a Roth and a traditional 401(k), weigh them up with roth or traditional.

What it is

Three different systems take money from a US paycheck, and each starts from a different number.

Federal income tax is charged on taxable income:

taxable income = gross pay − traditional 401(k) − HSA and premiums − standard deduction

That income is cut into brackets, slices taxed at 10%, 12%, 22% and up to 37%. The slices for married couples filing jointly are about twice as wide as for single filers. Then the child tax credit, $2,200 for each child under 17, comes straight off the tax.

FICA (Social Security and Medicare) has no brackets or deduction:

• Social Security = 6.2% of pay up to $184,500.
• Medicare = 1.45% of all pay, plus 0.9% above $200,000.

Pay for FICA is gross pay minus HSA and health premiums taken through payroll. A traditional 401(k) does not lower it.

State income tax depends on the state. Some have none on wages. Some flat-rate states are worked out exactly in the tool. For the rest, you type your own effective rate.

How to use it

1. Type your pay before anything comes off, as a year, or switch to an hour and give your hours a week.
2. Pick how often you are paid: weekly, every two weeks, twice a month or monthly.
3. Choose your filing status and type how many children under 17 you have.
4. Choose the state you work in. If a rate box appears, type your effective state rate; the note under it says whether the state is exact, has no wage tax or needs your rate.
5. Under before-tax deductions, set your 401(k) as a percentage or dollars a year, its type (traditional or Roth), your age at the end of 2026, any HSA and your health, dental and vision premiums.
6. Read take-home a paycheck, a year and a month, and your federal tax bracket. The bar and table show each item for one paycheck and the year; notes warn when a 401(k) or HSA is over its limit.

A worked example

Jordan and Sam are married, file jointly, have two children under 12, and work in North Carolina. Together they earn $120,000, are paid monthly, put 6% into a traditional 401(k) and pay $3,000 a year in health premiums through payroll.

Deductions. 401(k) = 6% × $120,000 = $7,200. With $3,000 of premiums, $10,200 comes off before tax.

Federal tax. Taxable income = $120,000 − $7,200 − $3,000 − $32,200 = $77,600. Tax = 10% × $24,800 + 12% × ($77,600 − $24,800) = $2,480 + $6,336 = $8,816. Child tax credit = 2 × $2,200 = $4,400. Federal tax = $4,416.

FICA. Pay for FICA = $120,000 − $3,000 = $117,000. Social Security = 6.2% × $117,000 = $7,254.00. Medicare = 1.45% × $117,000 = $1,696.50.

North Carolina. State wages = $120,000 − $3,000 − $7,200 = $109,800. Less the $25,500 standard deduction leaves $84,300. Tax = 3.99% × $84,300 = $3,363.57.

Take-home = $120,000 − $10,200 − $4,416 − $7,254 − $1,696.50 − $3,363.57 = $93,069.93 a year, or $7,755.83 a month. Their federal bracket is 12%.

If they switch the same 6% to a Roth 401(k), federal tax rises to $5,280 and state tax to $3,650.85, so take-home falls to $91,918.65, or $7,659.89 a month. The $1,151.28 a year is tax paid now, in return for tax-free withdrawals later.

Where it is used

• Comparing job offers, including offers in different states.
• Setting a 401(k) rate: watch how much each extra percent really costs per paycheck.
• Planning around a new baby: add a child and see the credit come off federal tax.
• Switching from hourly to salaried work, or checking a part-time schedule.
• Building a budget from a real monthly figure rather than a gross salary.
• Personal finance classes, to show why FICA and income tax start from different numbers.

Common mistakes

• Choosing the state you live in when you work in another. Pick the state where you work. Cross-border rules vary, so check the official source.
• Expecting a traditional 401(k) to cut Social Security and Medicare. It lowers income tax only; HSA and premiums through payroll lower both.
• Counting children who are 17 or older. Only children under 17 at the end of the year count for the credit here.
• Treating the bracket as your tax rate. Being “in the 12% bracket” means your last dollars pay 12%; your federal tax was under 4% of gross in the example.
• Forgetting city or county tax. New York City, Philadelphia and many Ohio and Indiana areas add their own, which the tool does not include.

Questions people ask

Why can my last paychecks of the year be bigger? Social Security stops once your pay for the year passes $184,500, so high earners see that 6.2% vanish from their final paychecks.

Does a bonus change my tax? The yearly tax depends on total pay, so type your salary plus the bonus. Payroll may withhold more on the bonus itself, and the difference is settled on your return.

Why does the state box ask me for a rate? For states with brackets or local rules that the tool does not work out exactly, an effective rate from last year’s return keeps the estimate honest.

Is this tax advice? No. It is general education based on the 2026 figures the tool uses. Withholding tables, credits and state rules change; check the official source (irs.gov and your state’s revenue department).