How this paycheck estimate works
The calculator annualizes the paycheck, subtracts pre-tax deductions and the 2026 standard deduction, then applies the 2026 federal income tax brackets. It adds Social Security tax (6.2% on wages up to the $184,500 wage base) and Medicare tax (1.45%, plus 0.9% Additional Medicare Tax above $200,000, or $250,000 for joint filers). State tax is applied as a flat percentage you enter.
Net pay = Gross − Pre-tax − Federal tax − Social Security − Medicare − State tax
2026 standard deductions used
- Single: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
Employer costs are higher than gross pay
Remember that as an employer you also pay a matching 7.65% in FICA, plus federal and state unemployment taxes. A $2,500 paycheck costs a business roughly $2,700 or more before benefits.
FAQs
Is this the exact amount withheld?
No. Payroll withholding uses the IRS Publication 15-T method and the employee's W-4 (dependents, extra withholding, other income). This tool gives a close estimate of annual tax spread across paychecks.
Are 401(k) contributions exempt from FICA?
Traditional 401(k) deferrals reduce income tax but are still subject to Social Security and Medicare. Section 125 health premiums usually reduce both. This calculator applies pre-tax deductions to income tax only, which is the conservative choice.
Does it include local or city taxes?
No. Add your local rate to the state rate field for a rough combined estimate.