Take-home pay is gross pay minus pre-tax deductions, taxes and after-tax deductions. Here is each step with 2026 IRS and Social Security figures and a full worked example.
- Take-home pay = gross pay − pre-tax deductions − taxes − after-tax deductions.
- For 2026, the federal standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.
- Employees pay 6.2% Social Security tax on wages up to $184,500 in 2026, plus 1.45% Medicare tax on all wages.
- Traditional 401(k) contributions lower your federal income tax but not your Social Security and Medicare tax.
- In the worked example, a single filer earning $65,000 takes home about $49,458 a year, or about $1,902 every two weeks, before state tax.
In this article
To calculate take-home pay, start with your gross pay, subtract pre-tax deductions, then subtract federal income tax, Social Security tax (6.2%), Medicare tax (1.45%), any state and local income tax, and after-tax deductions. What’s left is your net pay. Below is each step with 2026 IRS and Social Security figures and a full worked example for a $65,000 salary.
What take-home pay means
Take-home pay (net pay) is the amount that actually reaches your bank account. Gross pay is what you earn before anything comes out: your salary, or your hourly rate times hours worked, plus overtime, bonuses or commissions.
The gap between the two is made up of three kinds of deductions:
- Pre-tax deductions come out before some or all taxes are calculated, such as traditional 401(k) contributions and health insurance premiums paid through your employer’s plan.
- Taxes: federal income tax, Social Security and Medicare (together called FICA), and state or local income tax where they apply.
- After-tax deductions come out after taxes, such as Roth 401(k) contributions, some insurance, union dues or wage garnishments.
When you compare job offers, compare take-home pay, not just salary. A higher salary with expensive benefits can leave you with less each payday. Our guide on how to negotiate a job offer covers what to ask for.
2026 tax figures you need
These are the federal numbers for 2026, as published by the IRS (Revenue Procedure 2025-32, October 2025), the Social Security Administration and IRS Topic 751.
| Item | 2026 amount |
|---|---|
| Standard deduction, single or married filing separately | $16,100 |
| Standard deduction, married filing jointly | $32,200 |
| Standard deduction, head of household | $24,150 |
| Social Security tax (employee share) | 6.2% of wages up to $184,500 |
| Medicare tax (employee share) | 1.45% of all wages |
| Additional Medicare tax | 0.9% on wages over $200,000 in a calendar year (withheld by employer) |
| Traditional 401(k) employee deferral limit | $24,500 |
2026 federal income tax brackets
The rate applies to taxable income (income after the standard deduction) within each band, not to your whole income.
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 |
| 12% | Over $12,400 to $50,400 | Over $24,800 to $100,800 |
| 22% | Over $50,400 to $105,700 | Over $100,800 to $211,400 |
| 24% | Over $105,700 to $201,775 | Over $211,400 to $403,550 |
| 32% | Over $201,775 to $256,225 | Over $403,550 to $512,450 |
| 35% | Over $256,225 to $640,600 | Over $512,450 to $768,700 |
| 37% | Over $640,600 | Over $768,700 |
How to calculate take-home pay, step by step
- Find your annual gross pay. Salary, or hourly rate × hours per week × 52. Add expected overtime or bonuses if you want a full-year number.
- Subtract pre-tax deductions to get federal taxable wages. Take out traditional 401(k) or 403(b) contributions and pre-tax health, dental and vision premiums.
- Subtract the standard deduction. Use $16,100 (single), $32,200 (married filing jointly) or $24,150 (head of household). The result is your taxable income.
- Apply the tax brackets. Multiply the income in each band by that band’s rate and add the results. Subtract any tax credits you expect, such as the child tax credit.
- Calculate FICA. Start from gross pay minus pre-tax health premiums (401(k) contributions stay in). Multiply by 6.2% for Social Security, up to the $184,500 wage base, and by 1.45% for Medicare.
- Estimate state and local income tax. Use your state revenue department’s current rates or withholding tables.
- Subtract after-tax deductions. Roth contributions, other insurance and anything else taken after tax.
- Divide by your number of paychecks. 52 for weekly, 26 for every two weeks, 24 for twice a month, 12 for monthly.
Why the order matters: 401(k) deferrals aren’t counted as wages for federal income tax, but the IRS says they are still wages subject to Social Security and Medicare taxes. Health premiums paid through a cafeteria plan are a qualified pre-tax benefit and generally escape both.
Worked example: $65,000 salary, single filer
Assumptions: single, standard deduction, no tax credits, paid every two weeks (26 paychecks), contributes 5% of salary to a traditional 401(k), and pays $100 per paycheck for health insurance through the employer’s pre-tax plan. State tax is left out because it depends on where you live.
| Step | Calculation | Annual amount |
|---|---|---|
| Gross pay | Salary | $65,000.00 |
| 401(k) contribution | $65,000 × 5% | $3,250.00 |
| Health premium | $100 × 26 | $2,600.00 |
| Federal taxable wages | $65,000 − $3,250 − $2,600 | $59,150.00 |
| Taxable income | $59,150 − $16,100 standard deduction | $43,050.00 |
| Federal income tax | 10% × $12,400 = $1,240, plus 12% × ($43,050 − $12,400) = $3,678 | $4,918.00 |
| FICA wages | $65,000 − $2,600 (401(k) stays in) | $62,400.00 |
| Social Security tax | $62,400 × 6.2% | $3,868.80 |
| Medicare tax | $62,400 × 1.45% | $904.80 |
| Take-home pay | $65,000 − $3,250 − $2,600 − $4,918 − $3,868.80 − $904.80 | $49,458.40 |
Per paycheck, that works out to:
| Line on the pay stub | Every two weeks |
|---|---|
| Gross pay | $2,500.00 |
| 401(k) | −$125.00 |
| Health insurance | −$100.00 |
| Federal income tax | −$189.15 |
| Social Security | −$148.80 |
| Medicare | −$34.80 |
| Net pay | $1,902.25 |
Two things stand out. First, the federal income tax is about 7.6% of gross pay, even though this person is in the 12% bracket, because the standard deduction and the 10% band shelter the first dollars. Second, the 401(k) cost $125 per paycheck but cut net pay by less than that, because it lowered federal income tax by 12 cents on each dollar contributed.
Your actual paycheck can differ a little, because employers withhold using your Form W-4 and the IRS withholding tables rather than this year-end estimate. To check your withholding, use the IRS Tax Withholding Estimator.
Higher earners: the Social Security cap and Additional Medicare tax
Social Security tax stops once your wages for the year pass $184,500, so the maximum an employee pays in 2026 is $184,500 × 6.2% = $11,439. If you earn more than that, your paychecks get bigger late in the year once you hit the cap.
Medicare has no cap. Your employer must also withhold an extra 0.9% Additional Medicare tax on wages over $200,000 in a calendar year, regardless of filing status. The threshold on your return is $250,000 for married filing jointly, $125,000 for married filing separately and $200,000 for everyone else, so the final amount is settled when you file.
Example: on a $220,000 salary, Social Security tax is $11,439, Medicare tax is $220,000 × 1.45% = $3,190, and Additional Medicare tax withheld is ($220,000 − $200,000) × 0.9% = $180.
State and local taxes
State income tax is where take-home pay varies most. Some states don’t tax wages at all, some use one flat rate, and others use brackets like the federal system. Some cities and counties add their own income tax, and a few states take small payroll deductions for disability or paid family leave programs.
To include state tax in your estimate, look up your state revenue department’s current withholding tables or rates and apply them to your state taxable wages, which may not match your federal figure. If you are comparing offers in different cities, run the numbers for each location. Our list of the best-paying cities for entry-level jobs is a useful starting point.
Hourly pay, overtime and bonuses
- Hourly workers: gross pay per check = hourly rate × hours in the pay period, with overtime hours at the overtime rate. If your hours vary, estimate from an average week.
- Bonuses and commissions: these are supplemental wages, and employers can withhold federal income tax on them at a flat 22% rate (37% on supplemental wages over $1 million in a year), so a bonus check can look different from a regular one. What you owe for the year is still set by your total income and the brackets.
- Contract and 1099 work: if you are paid as an independent contractor, nothing is withheld, and you pay both halves of Social Security and Medicare as self-employment tax. Our guide to W-2 vs. 1099 work explains the difference.
How to increase your take-home pay
- Check your Form W-4 so you aren’t over-withholding all year and waiting for a refund.
- Use pre-tax benefits you would pay for anyway, such as health premiums, a health FSA or HSA, and commuter benefits if offered.
- Compare benefit plan options during open enrollment; the cheapest premium isn’t always the lowest total cost.
- Know that traditional 401(k) contributions lower your paycheck by less than the amount you save.
- Negotiate base pay, and ask about signing bonuses, paid certifications or schedule differentials. Our Salary Guide shows typical pay for 450+ roles.
This is general information, not tax advice. Check with a tax professional for your situation.
How Careerscape can help
Careerscape is a U.S. staffing and recruiting firm that places people in direct hire, contract and temporary jobs. If you are weighing a pay change, browse open roles on our job board or get help with your next move through our job seeker resources.
Frequently asked questions
What percentage of my paycheck goes to taxes?
It depends on your income, filing status, deductions and state. Every employee pays 7.65% for Social Security and Medicare on wages up to the Social Security wage base. Federal income tax adds more as income rises. In our $65,000 single-filer example, federal income tax and FICA together took about 15% of gross pay, before any state tax.
How do I calculate net pay from gross pay?
Subtract pre-tax deductions, then federal income tax, Social Security (6.2%), Medicare (1.45%), state and local tax, and after-tax deductions from your gross pay. Divide the annual result by your number of pay periods to get net pay per paycheck. The step-by-step section above shows each calculation in order.
Is a take-home pay calculator accurate?
A good calculator gets close if it uses current-year tax figures and you enter your real filing status, pay frequency and deductions. It can be off if it ignores pre-tax benefits, local taxes or credits. For withholding, the IRS Tax Withholding Estimator is the most reliable free tool, and your first pay stub is the final check.
Why is my first paycheck smaller than expected?
Common reasons are a partial pay period, benefit premiums starting, a W-4 that withholds more than you need, or state and local taxes you didn’t account for. Compare each line of your pay stub with your own estimate, and ask payroll about anything you don’t recognize.
Does a raise ever reduce take-home pay?
Not because of federal tax brackets. Higher rates apply only to the income within each bracket, so a raise always increases federal after-tax pay. Net pay can fall only if something else changes at the same time, such as losing eligibility for a benefit or credit, or raising your own 401(k) contribution.
- IRS: IRS releases tax inflation adjustments for tax year 2026 (IR-2025-103, October 9, 2025)
- Social Security Administration: Contribution and Benefit Base
- IRS: Topic no. 751, Social Security and Medicare withholding rates
- IRS: Topic no. 560, Additional Medicare tax
- IRS: Topic no. 424, 401(k) plans
- IRS: Retirement topics, 401(k) and profit-sharing plan contribution limits
- IRS: Publication 15 (Circular E), Employer’s Tax Guide
- IRS: Publication 15-B, Employer’s Tax Guide to Fringe Benefits
- IRS: Tax Withholding Estimator