Assumptions
- Annualized estimate: federal tax = 2026 brackets applied to gross minus 401(k), Section 125 and the standard deduction; no itemized deductions or credits.
- FICA on gross minus Section 125; Social Security capped at $184,500; additional Medicare 0.9% over $200,000.
- State tax is an optional user-entered estimate on salary after entered deductions. No state-specific automatic brackets, exemptions, surcharges, local taxes or SDI.
- Jurisdiction: United States, tax year 2026.
How it is calculated
- Federal taxable income = gross − 401(k) − pre-tax benefits − standard deduction (single $16,100 / joint $32,200 / HOH $24,150).
- Federal tax = 10% / 12% / 22% / 24% / 32% / 35% / 37% applied progressively to the 2026 brackets.
- Social Security = 6.2% × min(FICA wages, $184,500). Medicare = 1.45% × FICA wages + 0.9% × wages over $200,000.
- State estimate = your entered rate × salary after entered deductions. Take-home = gross − deductions − all taxes, divided by pay periods.
Examples
| Case (2026) | Federal | FICA | Take-home per year |
|---|---|---|---|
| $75,000 single, no state tax | $7,670.00 | $5,737.50 | $61,592.50 |
| $75,000 single, entered state rate 3.07% | $7,670.00 | $5,737.50 | $59,290.00 |
| $120,000 joint, 6% traditional 401(k), no state tax | $9,176.00 | $9,180.00 | $94,444.00 |
| $250,000 single, no state tax | $51,304.00 | $15,514.00 | $183,182.00 |
Common mistakes
- Graduated-tax states (CA, NY, NJ, OR, MN and others) are not modeled; enter an estimated effective state rate, or wait for the state-specific calculators.
- Credits are excluded. The child tax credit ($2,200 per child in 2026) and EITC can cut federal tax substantially; this tool shows tax before credits.
- Supplemental wages (bonuses, RSUs) may use different withholding methods, so a bonus paycheck can differ from this annualized estimate.
FAQ
How accurate is this compared with my actual paycheck?
It estimates annual tax using the 2026 brackets and standard deduction, then divides by your number of paychecks. Your employer withholds using IRS Publication 15-T and your W-4, so each paycheck can differ, especially with bonuses or mid-year raises, but this is not a final tax-return calculation. It does not include local or city taxes (NYC, Philadelphia), state disability insurance (CA SDI, NJ), or tax credits (child tax credit, EITC).
What changed for 2026?
The IRS raised the standard deduction to $16,100 (single), $32,200 (joint) and $24,150 (head of household) and adjusted all seven brackets for inflation (Rev. Proc. 2025-32, Oct 9 2025). The Social Security wage base rose to $184,500 (maximum employee tax $11,439).
How is state tax estimated?
Select no wage income tax or enter an effective rate. The entered rate is applied to salary after the entered deductions. State exemptions, deductions, surcharges and local taxes vary and are not modeled. This estimate can be higher or lower than actual withholding; use your state payroll guidance to choose the rate.
Why does my Social Security tax stop mid-year?
Social Security (OASDI) is 6.2% only on the first $184,500 of wages in 2026. Once you pass that, your paychecks grow by 6.2% for the rest of the year. Medicare has no cap, and an extra 0.9% applies to wages over $200,000 regardless of filing status for withholding purposes.
Does a 401(k) really lower my taxes?
Traditional 401(k) contributions are excluded from federal and most state taxable income but still subject to Social Security and Medicare. In the 22% bracket, each $100 contributed lowers federal tax by $22 now. Roth 401(k) contributions do not reduce current taxes. Pre-tax health premiums and FSA (Section 125) are better still because they escape FICA too.