Understand Gross Pay and Take-Home Pay
Gross pay is the amount earned before taxes and deductions. Net pay is the amount deposited into your account after federal, state, and local taxes, FICA, insurance premiums, 401(k) contributions, and other deductions are taken out. Also check the pay period and year-to-date totals on your pay stub.
Federal Withholding Is Calculated by Tax Bracket
For single filers in 2026, taxable income up to $12,400 is taxed at 10%, while income over $12,400 and up to $50,400 is taxed at 12%. Higher rates apply only to the income within each bracket, not to your entire income. Your W-4 can account for filing status, multiple jobs, dependent-related tax credits, and other adjustments.
State and Local Taxes Depend on Where You Work and Live
Some states do not impose a broad individual income tax on wages, but the treatment of investment income and local taxes may vary. When calculating your pay, check the latest tax rules for both your workplace and your place of residence.
2026 FICA Rates and Limits
The employee Social Security tax rate is 6.2%, and the 2026 taxable wage base is $184,500. The Medicare tax rate is 1.45%, with no wage limit. Employers withhold an additional 0.9% on wages above $200,000 earned by an employee during the year. Your final tax liability may vary depending on your filing status.
Check Non-Tax Deductions Separately
Health, dental, and vision insurance premiums, 401(k) contributions, HSA and FSA contributions, and life insurance may be deducted depending on your benefits. Pre-tax and after-tax deductions affect taxable income differently, so check the item names on your pay stub.