What Gets Deducted From Your Paycheck?
Every paycheck in the U.S. has the same core deductions, though the exact amounts vary by income, state, and personal elections. Here's the complete breakdown of where your gross pay actually goes.
Illustrative example based on a $60,000 salary, single filer, no state-specific adjustment. Your actual breakdown depends on income, filing status, and state.
Gross Pay, Net Pay & Annual Income — Key Definitions
Before the deduction breakdown makes sense, it helps to be clear on exactly what "gross," "net," and "annual income" mean — these terms get mixed up constantly, and payroll, lenders, and the IRS don't always use them the same way. If you want to see exactly where each of these figures shows up, walk through a real pay stub line by line alongside this guide. See our glossary for quick definitions of every term used here.
How to Find Your Monthly or Yearly Income From Any Pay Frequency
However you're paid, here's how to convert to a standard monthly or annual figure:
| You're Paid... | To Find Monthly Income | To Find Annual Income |
|---|---|---|
| Weekly | Weekly pay × 4.33 | Weekly pay × 52 |
| Bi-weekly (every 2 weeks) | Bi-weekly pay × 2.167 | Bi-weekly pay × 26 |
| Semi-monthly (twice a month) | Semi-monthly pay × 2 | Semi-monthly pay × 24 |
| Monthly | Already monthly | Monthly pay × 12 |
| Hourly | Hourly rate × hours/week × 4.33 | Hourly rate × hours/week × 52 |
Note: bi-weekly and semi-monthly are often confused — bi-weekly means every 2 weeks (26 paychecks/year), while semi-monthly means twice per month, typically the 1st and 15th (24 paychecks/year). They produce slightly different per-paycheck amounts even for the same annual salary.
What Is a Gross-Up Calculation?
"Grossing up" a paycheck means working backward from a desired net amount to figure out the gross amount needed to produce it after taxes — the reverse of a normal paycheck calculation. This comes up most often with bonuses: if an employer wants an employee to receive exactly $1,000 net, they need to gross up the payment to cover the taxes that will be withheld, often paying out roughly $1,300–$1,450 gross depending on the employee's tax bracket and state, so the after-tax amount lands at the target $1,000. Relocation payments and one-time awards are also commonly grossed up so the recipient isn't left covering unexpected tax on a benefit. Rather than doing this math by hand, the paycheck calculator below can run the numbers in reverse for you.
Federal Income Tax — 2026 Brackets
Federal income tax is withheld from every paycheck regardless of which state you live in, using progressive tax brackets based on your filing status.
| Tax Rate | Single Filer (2026) | Married Filing Jointly (2026) |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
These are marginal rates — only income within each bracket is taxed at that rate. A $60,000 earner doesn't pay 22% on all $60,000; they pay 10% on the first portion, 12% on the next, and 22% only on income above $48,476.
The Standard Deduction Reduces Your Taxable Income First
Before brackets apply, the 2026 federal standard deduction ($16,100 single / $32,200 married filing jointly) is subtracted from your gross income. A single filer earning $60,000 has approximately $43,900 in federal taxable income after the standard deduction — which is what actually gets taxed using the bracket table above.
FICA — Social Security & Medicare
FICA (Federal Insurance Contributions Act) taxes are fixed-rate, mandatory deductions that fund Social Security and Medicare. Unlike federal income tax, FICA isn't based on brackets — it's a flat percentage with one key cap.
Social Security — 6.2% Up to the Annual Wage Base
6.2% of your gross wages is withheld for Social Security, but only up to the annual wage base — $184,500 for 2026. Once your year-to-date earnings cross that threshold, Social Security withholding stops for the rest of the year, which is why high earners often notice a paycheck increase later in the year.
Medicare — 1.45% on All Wages, No Cap
1.45% of your gross wages is withheld for Medicare with no income cap — every dollar you earn is subject to this tax. High earners pay an additional 0.9% Medicare surtax on wages above $200,000 (single) or $250,000 (married filing jointly), per the Affordable Care Act.
FICA Is Split With Your Employer
The 7.65% combined FICA rate you see on your paycheck is only half the story — your employer pays a matching 7.65% on your behalf, for a total of 15.3% funding Social Security and Medicare per employee. Self-employed workers pay both halves themselves (15.3% total) through self-employment tax.
State Income Tax — Varies Dramatically by State
Unlike federal tax and FICA, state income tax withholding depends entirely on where you live and work. Nine states have none at all.
| Category | States | Typical Top Rate |
|---|---|---|
| No state income tax | AK, FL, NV, NH, SD, TN, TX, WA, WY | 0% |
| Flat-rate states | IL, IN, KY, MA, MI, NC, PA, UT, CO, AZ | 2.5%–5.0% |
| Progressive bracket states | CA, NY, OR, MN, NJ, VA, MD, and most others | 5%–13.3% |
Some states also allow local/city income taxes on top of state tax (e.g. New York City, Philadelphia, many Ohio cities) — adding another layer of withholding.
Quick Tax Deduction Estimate
Get a rough estimate of federal tax + FICA on your gross pay. For your exact take-home pay including state tax, use the full paycheck calculator below.
This is a simplified federal-only estimate. State tax is not included since it varies by state. Use the full paycheck calculator for your exact take-home pay including state tax for all 50 states.
Real Paycheck Deduction Examples
Bi-weekly deduction breakdowns at common income levels — federal tax + FICA only, single filer, standard deduction, no state tax shown (varies by state).
| Gross (bi-weekly) | $1,346.15 |
| Federal income tax (~9% eff.) | −$121.00 |
| Social Security (6.2%) | −$83.46 |
| Medicare (1.45%) | −$19.52 |
| Take-Home (before state tax) | ~$1,122/paycheck |
| Gross (bi-weekly) | $2,692.31 |
| Federal income tax (~14% eff.) | −$377.00 |
| Social Security (6.2%) | −$166.92 |
| Medicare (1.45%) | −$39.04 |
| Take-Home (before state tax) | ~$2,109/paycheck |
| Gross (bi-weekly) | $4,615.38 |
| Federal income tax (~19% eff.) | −$877.00 |
| Social Security (6.2%) | −$286.15 |
| Medicare (1.45%) | −$66.92 |
| Take-Home (before state tax) | ~$3,385/paycheck |
How to Reduce Your Paycheck Tax Deductions
You can't avoid taxes, but you can legally reduce your taxable income — and therefore your withholding — through pre-tax benefits.
401(k) / 403(b) Retirement Contributions
Every dollar contributed to a traditional 401(k) reduces your taxable income dollar-for-dollar before federal (and most state) tax is calculated. The 2026 limit is $23,500 ($31,000 if age 50+). A worker in the 22% federal bracket who contributes $5,000/year saves approximately $1,100 in federal tax alone. See exactly how a specific contribution amount affects your own paycheck with the 401(k) tax impact calculator.
Health Savings Account (HSA)
If enrolled in a High Deductible Health Plan, HSA contributions are triple tax-advantaged: tax-deductible going in, tax-free growth, and tax-free withdrawals for medical expenses. The 2026 limit is $4,300 (individual) / $8,550 (family).
Flexible Spending Account (FSA)
FSA contributions for healthcare or dependent care expenses are deducted pre-tax, lowering taxable income similarly to an HSA, though FSA funds typically must be used within the plan year or a short grace period.
Adjusting Your W-4
Your W-4 controls how much is withheld from each paycheck — not your actual total tax liability. If you consistently get a large refund, you may be over-withholding; adjusting your W-4 allowances can increase take-home pay throughout the year (though it doesn't reduce what you ultimately owe).