Wondering what you'll actually take home from your salary? Use our free Paycheck Calculator to estimate net pay after 2026 federal tax, FICA, and deductions — based on current IRS brackets.
Gross Pay vs Net Pay
Your gross pay is your total earnings before any taxes or deductions. Your net pay (take-home pay) is what lands in your bank account after federal income tax, FICA payroll taxes, state tax, and any pre-tax deductions like 401(k) contributions or health insurance.
Many people look only at their salary figure and are surprised by how much smaller their actual paycheck is. This calculator shows both the annual totals and a per-pay-period breakdown based on your pay frequency.
What FICA Actually Funds
FICA is not the same as federal income tax. It stands for Federal Insurance Contributions Act and funds two specific programs:
- Social Security (6.2%) — applied to wages up to the annual wage base ($184,500 in 2026)
- Medicare (1.45%) — applied to all wages, with an additional 0.9% on high earners above $200,000 (single) or $250,000 (married filing jointly)
These are flat payroll taxes, separate from the progressive federal income tax brackets. You'll see them on every paycheck regardless of your filing status.
The Standard Deduction
Before federal tax brackets apply, the IRS subtracts the standard deduction from your taxable income. For 2026, this is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household.
Pre-tax deductions (401(k), health insurance, HSA) further reduce your taxable income before brackets are applied — which is why contributing to a 401(k) lowers your federal tax bill.
Tax Brackets vs Effective Rate — and Why Raises Never Hurt You
A common misconception: "If I get a raise and move into a higher tax bracket, I'll take home less money." This is never true in the US progressive tax system.
Only the income inside a higher bracket is taxed at that higher rate. The rest of your income continues being taxed at the lower rates it always was. A raise always increases your take-home pay — even if part of the raise lands in a higher bracket.
Your marginal bracket is the rate on your last dollar of income. Your effective rate is your total federal tax divided by gross pay — always lower than your top bracket because lower dollars were taxed at lower rates first.
State Tax — What This Calculator Does and Doesn't Do
Federal tax and FICA in this calculator use precise 2026 IRS figures. State income tax is handled honestly and simply:
- Nine states have no wage income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) — state tax is $0 automatically
- For all other states, you can enter your own known effective state tax rate, or use the default ~5% rough estimate
We do not model each state's actual progressive bracket structure in this version — that would require state-by-state rules with high error risk if rushed. The estimate is clearly labeled so you aren't misled. For an exact state figure, check your state's tax tables or your pay stub.
From Take-Home Pay to Home Affordability
Once you know your net pay, the natural next step is understanding what home price fits your budget. See our mortgage calculator guide and try the Mortgage Calculator to see full monthly PITI payments and amortization.
Frequently Asked Questions
Why is my federal tax bracket different from my effective tax rate?
Your tax bracket is the rate on your highest dollar of income, but the US system is progressive — lower portions of your income are taxed at lower rates first, so your effective (average) rate is always lower than your top bracket.
Will a raise ever reduce my take-home pay?
No — only the income that falls within a higher bracket is taxed at that bracket's rate; the rest continues being taxed at the lower rates it always was. A raise always increases take-home pay, even if part of it lands in a higher bracket.
What's the difference between federal income tax and FICA?
Federal income tax funds general government operations and is based on your tax bracket. FICA (Social Security and Medicare taxes) is a separate flat-rate payroll tax that funds those specific programs, calculated differently from income tax.
How accurate is the state tax shown?
Federal tax and FICA are calculated precisely from current IRS figures. State tax is a simplified flat-rate estimate (or zero, for the 9 no-income-tax states) — for an exact figure, check your specific state's tax tables.