NetWorthFlow
CAREER & INCOMEVerified: June 29, 2026

Salary Paycheck &Tax Calculators

See exactly how much money lands in your bank account after federal income tax, state income tax, Social Security, and Medicare deductions.

DATASETState & Federal Tax Brackets
ADJUSTMENTSFICA & Standard Deduction
PRIVACY100% Client-Side Sandbox

Select Your State

Choose a state below to calculate precise regional, state, and federal tax withholdings.

Alabama

State Tax: ~4%

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Alaska

No State Income Tax

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Arizona

State Tax: ~2.5%

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Arkansas

State Tax: ~4.4%

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California

State Tax: ~9.3%

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Colorado

State Tax: ~4.4%

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Connecticut

State Tax: ~5.5%

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Delaware

State Tax: ~5%

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District of Columbia

State Tax: ~7.5%

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Florida

No State Income Tax

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Georgia

State Tax: ~4.99%

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Hawaii

State Tax: ~8.25%

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Idaho

State Tax: ~5.8%

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Illinois

State Tax: ~4.95%

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Indiana

State Tax: ~2.95%

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Iowa

State Tax: ~3.8%

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Kansas

State Tax: ~5%

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Kentucky

State Tax: ~4%

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Louisiana

State Tax: ~3.5%

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Maine

State Tax: ~6.5%

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Maryland

State Tax: ~4.75%

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Massachusetts

State Tax: ~5%

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Michigan

State Tax: ~4.25%

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Minnesota

State Tax: ~7.5%

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Mississippi

State Tax: ~4%

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Missouri

State Tax: ~4.7%

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Montana

State Tax: ~5.65%

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Nebraska

State Tax: ~4.55%

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Nevada

No State Income Tax

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New Hampshire

No State Income Tax

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New Jersey

State Tax: ~6.5%

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New Mexico

State Tax: ~4.9%

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New York

State Tax: ~6.85%

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North Carolina

State Tax: ~4.5%

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North Dakota

State Tax: ~2%

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Ohio

State Tax: ~3%

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Oklahoma

State Tax: ~4.5%

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Oregon

State Tax: ~8%

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Pennsylvania

State Tax: ~3.07%

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Rhode Island

State Tax: ~4.75%

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South Carolina

State Tax: ~5.21%

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South Dakota

No State Income Tax

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Tennessee

No State Income Tax

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Texas

No State Income Tax

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Utah

State Tax: ~4.55%

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Vermont

State Tax: ~6.5%

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Virginia

State Tax: ~5%

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Washington

No State Income Tax

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West Virginia

State Tax: ~5%

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Wisconsin

State Tax: ~7.65%

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Wyoming

No State Income Tax

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How the U.S. Payroll Tax System Actually Works

6.2%employee Social Security tax rate applied to wages up to the wage base limit
0.9%Additional Medicare Tax rate applied to single filers earning over $200,000
9number of U.S. states that impose no state income tax at all

Your gross salary and your net paycheck are two entirely different numbers, and the gap between them is one of the most important concepts in personal finance. When an employer offers you $85,000 per year, that is your pre-tax gross income. What hits your bank account every two weeks is your net pay, after federal income tax withholding, FICA taxes, state income taxes, and any voluntary pre-tax deductions like 401(k) contributions or health insurance premiums.

The U.S. tax system is progressiveat the federal level, meaning higher income is taxed at higher rates, but only on the income within each bracket. This is the marginal rate system. A common misconception is that earning more money and “moving into a higher bracket” will reduce your overall take-home pay. That is incorrect. Only the dollars above the bracket threshold are taxed at the higher rate; every dollar below remains taxed at its lower bracket rate.

FICA Taxes: Social Security and Medicare

Beyond income tax, every employee pays FICA taxes (the Federal Insurance Contributions Act taxes that fund Social Security and Medicare). In 2026, the Social Security tax rate is 6.2% on wages up to the wage base limit of $176,100, and the Medicare tax rate is 1.45% on all wages with no cap. Your employer matches both contributions exactly, effectively paying an additional 7.65% on your behalf, a cost that is invisible to most employees but represents a significant portion of your total compensation cost to the employer.

High earners face an Additional Medicare Tax of 0.9% on wages exceeding $200,000 (single filers) or $250,000 (married filing jointly). Unlike standard FICA, this surcharge is not matched by your employer and is reconciled annually on your Form 1040, not always withheld precisely by payroll systems throughout the year.

Why State Matters More Than Most People Realize

Nine U.S. states impose no state income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. For a household earning $120,000 per year, relocating from California (13.3% top marginal rate) to Texas (0%) can translate to more than $10,000 in annual after-tax savings at that income level, a meaningful difference that compounds over a career. Select your state above to calculate your precise take-home pay with our full state-specific tax model, which accounts for graduated brackets, flat rates, and the nine no-tax states.

The single most effective tool for increasing your net paycheck is maximizing pre-tax payroll deductions: your 401(k) contribution (up to $23,500 in 2026, or $31,000 with catch-up if age 50+), your HSA contribution (if enrolled in a qualifying HDHP), and employer-sponsored pre-tax health insurance premiums. These deductions lower your W-2 taxable wage base, reducing both your federal income tax and (for 401(k) and HSA) your effective taxable income at the federal level. Use our Tax Refund Calculator to see how withholding adjustments affect your annual tax balance.

KEY QUESTIONS

Common Questions About Paychecks, FICA, and Tax Bracket Calculations

Understanding paycheck deductions, progressive federal brackets, and state taxes.

How Is My Net Paycheck Calculated?+

Understanding how your gross earnings are whittled down to your net paycheck is essential for budgeting, negotiating job offers, and planning tax-savings strategies. In the United States, payroll deductions generally fall into three distinct buckets:

Contributions to Traditional 401(k) accounts, health insurance premiums, or HSA plans. These reduce your overall taxable income base.

Social Security taxes (6.2% up to the wage limit) and Medicare taxes (1.45%). These are mandatory withholdings that support federal safety nets.

Federal income taxes determined by progressive marginal brackets, alongside regional state-level progressive or flat tax brackets.

How Can I Maximize My Take-Home Pay?+

To optimize your net paycheck and minimize your federal tax liabilities, consider utilizing tax-advantaged accounts. Maximizing retirement contributions (401k, 403b) or health savings accounts (HSA) lowers your taxable earnings baseline, meaning you keep more of your hard-earned wealth under your control over the long run.

What formulas and tax brackets does the paycheck calculator use?+
The paycheck calculator computes withholdings by applying the progressive tax rate formulas specified in the IRS tax code. For the federal portion, it maps taxable income (gross wages minus pre-tax deductions and standard deductions) across marginal tax brackets. State income taxes are modeled using state-specific flat or progressive brackets.
Does this calculator account for state and local income taxes?+
Yes, the calculator simulates state-level income taxes. However, local county or municipal income taxes, school district surcharges, and occupational privilege taxes are excluded from these estimations. If you reside in a municipality with local income taxes (like Philadelphia, NYC, or Ohio school districts), you should adjust your estimated take-home pay downward accordingly.
How are FICA payroll taxes (Social Security and Medicare) calculated in this tool?+
FICA withholdings are calculated using flat statutory rates. For the 2026 tax year, the employee portion of Social Security is 6.2% of wages, capped at a maximum taxable wage base limit of $184,500. The standard Medicare tax is 1.45% of all wages, with no wage ceiling. The calculator applies these parameters automatically based on your gross wage entries.
Does the calculator model high-earner surcharges like the Additional Medicare Tax?+
Yes, the calculator factors in the 0.9% Additional Medicare Tax under IRC Section 1401(b)(2). This surcharge applies to wages exceeding $200,000 for single filers ($250,000 for married couples filing jointly), bringing the total Medicare withholding tax rate on excess earnings to 2.35%.
Why might my actual take-home paycheck differ from this estimate?+
Discrepancies typically occur due to unmodeled payroll deductions. These include employee health insurance premiums, dental/vision plans, commuter benefit accounts, post-tax Roth 401(k) contributions, wage garnishments, union dues, or local municipal tax withholdings. Aligning these inputs with your actual payroll stub will improve accuracy.

Official Government Sources

IRS
Federal Income Tax Brackets & Inflation Adjustments

Federal progressive tax brackets, standard deduction amounts, and tax rate schedules.

SSA
Social Security Wage Base and FICA Tax Rates

Regulatory caps on taxable earnings subject to FICA and Medicare tax limits.

Educational use only. Calculations are based on official U.S. government data (IRS, SSA, Federal Reserve, BLS, CFPB) current for 2026 and do not constitute tax, legal, or investment advice. Consult a CFP®, CPA, or RIA before making major financial decisions.