What Is a Paycheck Calculator?

How a Paycheck Calculator Works

When you enter your annual salary (or hourly wage), the calculator applies current IRS tax brackets to compute your federal income tax. It then adds your state's specific tax rate — which ranges from 0% in Texas and Florida to 13.3% in California. Finally it calculates FICA taxes: 6.2% Social Security and 1.45% Medicare, both mandatory for W-2 employees.

The result is your net pay — the amount that actually hits your bank account each pay period.

What Gets Deducted From Your Paycheck

Four categories of deductions reduce your gross pay:

1. Federal Income Tax — Progressive brackets from 10% to 37%, applied to your taxable income (gross minus standard deduction of $15,000 for single filers in 2026).

2. State Income Tax — Varies by state. Nine states (TX, FL, WA, NV, AK, SD, WY, TN, NH) have no income tax. California tops out at 13.3%.

3. Social Security Tax — 6.2% up to the wage base of $176,100 in 2026.

4. Medicare Tax — 1.45% on all wages. An additional 0.9% applies above $200,000.

Why It Matters for Your Financial Planning

Knowing your real take-home pay — not your quoted salary — is critical for budgeting, negotiating offers, and evaluating job changes. A $100,000 salary in California produces approximately $65,400/yr in take-home pay. The same salary in Texas yields about $73,700/yr. That $8,300 annual difference is real and consequential.

Frequently Asked Questions