How take-home pay is calculated
Your paycheck starts with gross pay. Traditional 401(k) or 403(b) contributions and pre-tax benefits such as health premiums come out first, which lowers your taxable income. Then the 2026 standard deduction is subtracted ($16,100 single, $32,200 married filing jointly, $24,150 head of household), and federal income tax is figured with the IRS brackets from 10% to 37%.
Social Security takes 6.2% of wages up to $184,500 in 2026, and Medicare takes 1.45% of all wages, plus 0.9% above $200,000 for single filers. Your 401(k) contribution still counts for these payroll taxes. Health premiums paid through work usually don't.
Why your bracket isn't your tax rate
Brackets are marginal: only the dollars above each threshold are taxed at the higher rate. Someone in the 22% bracket typically pays well under 10% of gross pay in federal income tax, which is why the calculator shows both numbers.
Limits of this estimate
- State tax is a single rate you enter. Some states use brackets or have local taxes too.
- It uses the standard deduction and the child tax credit only. Itemized deductions and other credits change the result.
- Your actual withholding depends on your W-4 and may differ from your final tax bill.