How to Calculate Your Take-Home Pay (2026)
6 min read
Your gross salary is the number in your job offer. Your take-home pay— also called net pay — is what's left after taxes and other deductions are withheld. The gap between the two often surprises people, so here's exactly what comes out of each paycheck.
1. Federal income tax
The U.S. uses a progressive system: only the income that falls inside each bracket is taxed at that bracket's rate. Before those rates apply, you subtract the standard deduction — $16,100 for single filers in 2026 ($32,200 married filing jointly). So someone earning $60,000 only pays federal income tax on about $43,900 of it, and even that is taxed in layers of 10% and 12% rather than a single flat rate.
2. Social Security and Medicare (FICA)
These are flat payroll taxes. Social Security takes 6.2% of your wages up to an annual cap ($184,500 in 2026), and Medicare takes 1.45% of all wages, with an extra 0.9% on anything over $200,000. Unlike income tax, FICA is not reduced by the standard deduction — it applies to your full wages.
3. State income tax
This is where location matters. Nine states take nothing from your wages, some charge a single flat rate, and others use their own progressive brackets that can reach 10% or more. Two people with identical salaries in Texas and California can end up with noticeably different take-home pay. See our guide to states with no income tax.
4. Pre-tax deductions
Contributions to a traditional 401(k), HSA or similar plan come out beforeincome tax is calculated, which lowers your taxable income (though not your FICA). They reduce your take-home pay today, but the money is still yours — it's going into savings rather than to the government.
Putting it together
Take-home pay = gross salary − federal income tax − Social Security − Medicare − state income tax − pre-tax deductions. Doing this by hand is tedious, so let the numbers run automatically:
This article is for general information only and is not tax advice. Figures reflect 2026 rules and may change.