Take-Home Pay Calculator

How Take-Home Pay Is Calculated

Tax year 2026 (returns filed in 2027). Figures are based on the IRS inflation adjustments for tax year 2026 announced in October 2025. This is an estimate only: it does not include tax credits (such as the Child Tax Credit), the Alternative Minimum Tax, the Net Investment Income Tax, special capital gains rates, newer targeted deductions, or local taxes. State tax is a simple flat-rate estimate based on the rate you enter.

Take-home pay (net pay) is what remains of your gross pay after payroll taxes and deductions. This calculator annualizes your pay, subtracts pre-tax contributions, applies the 2026 federal income tax brackets after the standard deduction, adds Social Security and Medicare (FICA), applies an optional flat state income tax rate, and then divides the result by your number of paychecks.

The Formula

Net pay = Gross − Pre-tax deductions − Federal tax − Social Security − Medicare − State tax

• Federal income tax: 2026 brackets applied to gross pay minus pre-tax deductions minus the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household)
• Social Security: 6.2% of wages up to the 2026 wage base of $184,500
• Medicare: 1.45% of all wages, plus an additional 0.9% on wages above $200,000 (single and head of household) or $250,000 (married filing jointly)
• Pre-tax health/HSA (Section 125): reduces both income tax and FICA wages
• Traditional 401(k)/403(b): reduces income tax but not Social Security or Medicare

Worked Example

A single employee earns a $75,000 salary, is paid every two weeks, has no pre-tax deductions, and lives in a state with no income tax.

• Federal income tax: taxable income $75,000 − $16,100 = $58,900, tax = $7,670
• Social Security: 6.2% × $75,000 = $4,650
• Medicare: 1.45% × $75,000 = $1,087.50
• Annual take-home: $75,000 − $7,670 − $4,650 − $1,087.50 = $61,592.50
• Per paycheck: $61,592.50 ÷ 26 = $2,368.94 (about $5,132.71 per month)

Why Your Actual Paycheck May Differ

• Employers withhold using IRS Publication 15-T tables and your Form W-4, which can differ slightly from your final tax liability
• Tax credits (for example, the Child Tax Credit claimed on your W-4) reduce withholding
• Local income taxes, state disability insurance, and progressive state brackets are not modeled
• Bonuses and supplemental wages are often withheld at a flat 22% federal rate

Frequently Asked Questions

How much is $75,000 a year after taxes in 2026?

For a single filer with no pre-tax deductions in a state without income tax, about $61,593 a year, or roughly $2,369 every two weeks, after federal income tax ($7,670), Social Security ($4,650), and Medicare ($1,087.50).

What is the Social Security wage base for 2026?

The Social Security Administration set the 2026 taxable maximum at $184,500. The 6.2% employee Social Security tax stops once your wages for the year pass that amount; Medicare tax has no cap.

Do 401(k) contributions reduce Social Security and Medicare taxes?

No. Traditional 401(k) and 403(b) deferrals lower your federal (and usually state) income tax, but they are still subject to Social Security and Medicare. Section 125 health insurance premiums and payroll HSA contributions reduce both.

How is hourly pay converted to annual pay?

Annual pay = hourly wage × hours per week × weeks per year. For example, $25 an hour × 40 hours × 52 weeks = $52,000 a year.

Why does the calculator ask for a flat state tax rate?

State income tax rules vary widely, from no income tax to multi-bracket systems with their own deductions. Entering an approximate effective state rate gives a reasonable estimate without modeling every state.

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