How we calculate your paycheck

For salaried workers, gross pay is your annual salary. For hourly workers, we compute: (hourly wage × regular hours) + (hourly wage × overtime multiplier × overtime hours), multiplied by 52 weeks. We then divide annual gross by your number of pay periods — 26 for biweekly, 24 for semi-monthly, 52 for weekly, or 12 for monthly.

We calculate taxable income as gross pay minus your standard deduction and any pre-tax contributions. The 2026 standard deduction is $16,100 (single), $32,200 (married filing jointly), and $24,150 (head of household). We then apply the 2026 IRS marginal brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) progressively.

Social Security is withheld at 6.2% on wages up to the 2026 wage base of $184,500. Medicare is withheld at 1.45% on all wages, with an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly). Pre-tax health premiums reduce the wages subject to FICA; traditional 401(k) contributions do not.

We apply 2026 state income tax rates. Nine states levy no income tax. Flat-tax states use a single rate; progressive states (such as California and New York) use graduated brackets. Some estimates use a representative effective rate; consult your state's tax authority for exact figures. Local/city taxes are applied only if you enter a rate.

Pre-tax deductions (traditional 401(k), health insurance) are subtracted before tax where applicable. Post-tax deductions (such as union dues) are subtracted after tax. Your net take-home pay = gross pay − federal tax − Social Security − Medicare − state tax − local tax − all deductions.

Figures are based on IRS 2026 inflation adjustments (released October 2025), the SSA 2026 Social Security wage base, and published 2026 state income tax rates. Paycheck Calculator Hub is an estimation tool and not tax, legal, or financial advice. Your actual withholding depends on your Form W-4, employer benefits, and other factors. Consult a qualified tax professional for personalized guidance.