Reference

How we calculate your paycheck

Every figure on PaycheckExplained comes from a transparent, documented engine. This page lays out exactly what goes into the math so you can trust — and check — the results.

1. Gross pay

For salaried inputs, gross is your annual salary divided by your pay frequency. For hourly inputs, gross is rate × regular hours × 52, plus overtime hours at 1.5× or 2× the hourly rate. All annual amounts are divided by pay periods (52 weekly, 26 bi-weekly, 24 semi-monthly, 12 monthly) to produce per-paycheck figures.

2. Federal income tax (2026)

Federal income tax is calculated progressively. Only the income within each bracket is taxed at that bracket's rate — not your entire income.

Federal AGI = Gross Annual Salary
              − Traditional 401(k) contributions
              − Health insurance premiums (annual)
              − HSA / FSA contributions (annual)

Federal Taxable Income = Federal AGI − Standard Deduction

2026 standard deductions by filing status:

Filing statusStandard deduction
Single$16,100
Married Filing Jointly$32,200
Married Filing Separately$16,100
Head of Household$24,150

Annual federal tax is divided by the number of pay periods to produce the per-paycheck withholding shown in the results.

3. FICA — Social Security & Medicare

FICA taxes are calculated on FICA wages, which differ from federal taxable income. Traditional 401(k) contributions do not reduce FICA wages — health insurance premiums and HSA/FSA contributions do.

FICA Wages = Gross Salary
              − Health insurance premiums (annual)
              − HSA / FSA contributions (annual)
              (Note: 401(k) contributions do NOT reduce FICA wages)
TaxRate2026 wage base
Social Security6.2%$184,500
Medicare1.45%No cap
Additional Medicare surcharge0.9%Above $200k (single) / $250k (MFJ)

4. State income tax

PaycheckExplained covers all 50 states and DC using full marginal bracket schedules with state standard deductions applied where they exist. State tax is labeled as an estimate throughout — every state's real withholding system has its own tables and rules that vary by employer configuration.

Nine states with no income tax on wages:

Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming

5. City & local income tax

The calculator models local income taxes for 22 cities across 9 states. A city dropdown appears automatically when you select a supported state. Methods include flat rates, income-bracket lookups (NYC), percent-of-state-tax (Yonkers), and flat annual amounts (Denver OPT).

StateCityRate
New YorkNew York City3.078%–3.876%
New YorkYonkers16.75% of state tax
PennsylvaniaPhiladelphia3.75%
PennsylvaniaPittsburgh3.0%
PennsylvaniaAllentown1.975%
PennsylvaniaErie1.8%
OhioColumbus2.5%
OhioCleveland2.5%
OhioCincinnati1.8%
OhioAkron2.5%
OhioToledo2.25%
MichiganDetroit2.4%
MichiganGrand Rapids1.5%
MichiganLansing1.0%
MarylandBaltimore City3.2%
MarylandMontgomery County3.2%
MarylandPrince George's County3.2%
KentuckyLouisville2.2%
KentuckyLexington2.25%
IndianaIndianapolis2.02%
MissouriKansas City1.0%
MissouriSt. Louis1.0%
ColoradoDenver (OPT)$69/yr flat

6. State disability insurance & PFML

Ten states collect employee contributions for disability insurance or paid family and medical leave. These are applied to gross annual salary (not Federal AGI). They are not deductible from federal or state taxable income for withholding purposes.

StateProgramEmployee rateWage base
CaliforniaCA SDI1.3%No cap
New YorkNY SDIFixed/periodN/A
New JerseyNJ TDI/FLI0.26%$161,400
HawaiiHI TDI0.5%/wk$7.54/wk
Rhode IslandRI TDI1.1%$84,000
WashingtonWA PFML0.807%No cap
OregonOR PFML0.6%No cap
ColoradoCO FAMLI0.45%No cap
ConnecticutCT PFML0.5%$168,600
MassachusettsMA PFML0.46%$168,600

7. Pre- and post-tax deductions

  • Pre-tax — 401(k): reduces federal and state taxable income, but not FICA wages.
  • Pre-tax — health, HSA/FSA, commuter: reduces federal, state, and FICA wages (maximum tax efficiency).
  • Post-tax — Roth 401(k), union dues, life insurance, garnishment: reduces take-home only, with no effect on taxes.
Net Pay = Gross − Pre-Tax Deductions − All Taxes − Post-Tax Deductions

What we don't account for

  • Supplemental wage withholding — bonuses and commissions are often withheld at a flat 22% federal rate. This calculator covers regular salary and hourly pay only.
  • Multiple jobs or dual incomes — a single-income calculation cannot model W-4 adjustments for multiple income sources.
  • Tax credits — Child Tax Credit, Earned Income Tax Credit, and others are not modeled. We use the standard deduction only.
  • Itemized deductions — if your itemized deductions exceed the standard deduction, your actual withholding may differ.

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PaycheckExplained estimates take-home pay using confirmed 2026 federal tax brackets and state income tax schedules. State tax figures are approximations — real states use full bracket schedules and complex withholding rules. We are not tax advisors and this is not tax advice. Use this tool for planning, not for filing.