What comes out of each paycheck
Your employer withholds four main items: federal income tax, Social Security (6.2%), Medicare (1.45%) and, depending on where you live, state income tax. If you contribute to a 401(k) or pay health insurance through work, those amounts come out before tax and lower what you’re taxed on.
2026 federal income tax
Following the One Big Beautiful Bill Act and the IRS inflation adjustment (Rev. Proc. 2025-32), the 2026 standard deduction is $16,100 for single filers, $32,200 for married filing jointly and $24,150 for heads of household. For single filers the brackets are: 10% up to $12,400, 12% up to $50,400, 22% up to $105,700, 24% up to $201,775, 32% up to $256,225, 35% up to $640,600 and 37% above. The Child Tax Credit is $2,200 per child under 17.
Social Security and Medicare (FICA)
The 6.2% Social Security tax applies up to $184,500 of wages in 2026; earnings above that are not taxed for Social Security. Medicare has no cap and adds an extra 0.9% on wages above $200,000.
State income tax
Texas, Florida, Nevada, Washington, Tennessee, South Dakota, Wyoming, Alaska and New Hampshire do not tax wages. Several states use a single flat rate, which the calculator applies directly. California, New York, New Jersey and others have their own brackets, and some counties or cities add local taxes; for those, enter an approximate effective rate.
Tips and overtime
From 2025 to 2028 there are federal deductions for reported tips (up to $25,000) and for overtime premium pay (up to $12,500, or $25,000 filing jointly). They are claimed on your annual return, not through paycheck withholding, so your refund may be larger than this estimate suggests.