Breakdown
How it works
Federal tax applies progressive brackets to taxable income (gross minus pre-tax deductions minus the standard deduction). FICA is flat: 6.2% Social Security up to the $184,500 wage base and 1.45% Medicare on everything, plus 0.9% above $200,000. Pre-tax 401(k) and health premiums reduce federal and state tax but 401(k) does not reduce FICA.
Formula
Worked example
$85,000 single, 6% 401(k), $2,400 health, 5% state: taxable $61,400 → federal $8,220; FICA $6,319; state $3,875; 401(k) $5,100 → take-home ≈ $59,090 a year, $2,273 bi-weekly.
Frequently asked questions
What are the 2026 federal tax brackets?
Single: 10% to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; 37% above. Married filing jointly: double each threshold except the 35% band, which ends at $768,700.
What is the 2026 standard deduction?
$16,100 single, $32,200 married filing jointly, $24,150 head of household. Over-65s get an extra $2,050 (single) or $1,650 each (married).
Why is my actual paycheck different?
Withholding uses your W-4 settings and may not match your final liability; local taxes, SDI (CA, NJ, NY), post-tax deductions and benefits like dental or life insurance also reduce net pay.