What Gets Deducted From Your Paycheck?
Your employer withholds several items from every paycheck before you see your take-home pay. Here's exactly what comes out and why:
Federal Income Tax
Withheld using IRS Pub 15-T 2026 tables based on your filing status and W-4. Ranges from 0% to 37% depending on taxable income.
Social Security (OASDI)
6.2% of wages up to $184,500 (the 2026 wage base). Once you earn over $184,500, Social Security withholding stops for the year.
Medicare
1.45% on all wages with no cap. High earners (over $200,000 single / $250,000 married) also pay an additional 0.9% Medicare surtax.
State Income Tax
Varies by state — from 0% (Texas, Florida, 7 others) to over 13% (California for high earners). The calculator applies 2026 state rates.
401(k) / 403(b)
Traditional 401(k) contributions reduce taxable wages, lowering federal and state income tax. The 2026 limit is $23,500 ($31,000 if 50+).
HSA & Health Insurance
Health insurance premiums and HSA contributions through payroll reduce your taxable income for federal tax. 2026 HSA limit: $4,300 self / $8,550 family.
Bi-Weekly vs. Semi-Monthly: What's the Difference?
These two pay frequencies look similar but produce different paycheck amounts. Your annual salary and total annual taxes are identical — only the timing changes.
| Feature | Bi-Weekly | Semi-Monthly |
|---|---|---|
| Pay schedule | Every 2 weeks (same weekday) | Twice per month (fixed dates, e.g. 1st & 15th) |
| Paychecks per year | 26 | 24 |
| Paycheck for $60,000 salary | $2,307.69 | $2,500.00 |
| "Extra" paycheck months | 2 months per year get a 3rd check | Never |
| Most common for | Hourly workers, blue-collar jobs | Salaried employees, white-collar |
| Annual salary identical? | ✓ Yes | ✓ Yes |
The two "extra" bi-weekly paychecks each year aren't bonus money — your annual salary is the same. Many people use them strategically for debt payoff or savings goals.
State Income Tax Rates 2026
State income tax significantly affects take-home pay. Here are the key states to know:
| State | Rate / Structure | Notes |
|---|---|---|
| Alaska | 0% — No tax | No state income tax |
| Florida | 0% — No tax | No state income tax |
| Nevada | 0% — No tax | No state income tax |
| New Hampshire | 0% wages | Wages not taxed; some investment income may apply |
| South Dakota | 0% — No tax | No state income tax |
| Tennessee | 0% wages | Wages not taxed as of 2021 |
| Texas | 0% — No tax | No state income tax |
| Washington | 0% wages | No state income tax on wages; capital gains tax separate |
| Wyoming | 0% — No tax | No state income tax |
| Pennsylvania | 3.07% flat | Flat rate on all income |
| Indiana | 3.0% flat | Flat rate |
| Colorado | 4.4% flat | Flat rate |
| Utah | 4.55% flat | Flat rate |
| Illinois | 4.95% flat | Flat rate; local taxes may apply |
| Massachusetts | 5.0% flat | Flat rate (surtax on high income) |
| North Carolina | 4.5% flat | Flat rate |
| Georgia | 5.49% flat | Flat rate for 2026 |
| New York | 4%–10.9% | Progressive; NYC adds city tax |
| California | 1%–13.3% | Highest bracket in the US |
| Oregon | 4.75%–9.9% | Progressive; no sales tax |
| Minnesota | 5.35%–9.85% | Progressive |
Source: Tax Foundation 2026 state income tax data. State calculator uses top rates as approximation before state-specific deductions. Actual withholding may vary. Data verified November 2026.
Example: How the Math Works
Let's walk through a manual calculation for a $60,000/year salaried employee in Texas, single, paid bi-weekly, with no deductions.
Inputs: $60,000 salary · Single · Bi-Weekly · Texas · W-4: standard (Step 2 unchecked)
1. Gross pay per period$60,000 ÷ 26 = $2,307.69
2. Annualize gross$2,307.69 × 26 = $60,000
3. Subtract standard W-4 deduction (Single, no Step 2)$60,000 − $8,600 = $51,400
4. Apply Pub 15-T Single bracket: $1,240 + 22% × ($51,400−$19,900)$1,240 + $6,930 = $8,170/yr → $314.23/period
5. Social Security: $2,307.69 × 6.2%$143.08/period
6. Medicare: $2,307.69 × 1.45%$33.46/period
7. State tax (Texas)$0 (no state income tax)
Total deductions per paycheck$490.77
✓ Take-home per bi-weekly paycheck$1,816.92
The standard W-4 deduction ($8,600 for single filers) approximates the standard deduction spread over the year, ensuring withholding aligns with your likely tax bill at filing.
Frequently Asked Questions
Your employer divides your annual salary by the number of pay periods per year: 52 for weekly, 26 for bi-weekly, 24 for semi-monthly, or 12 for monthly. That gives your gross pay per period. Federal income tax is withheld using IRS Publication 15-T tables based on your W-4 filing status. FICA taxes (Social Security 6.2% up to $184,500 + Medicare 1.45%) are deducted from every paycheck. State income tax and any pre-tax deductions come out last to give your net take-home pay.
Bi-weekly means you are paid every two weeks, resulting in 26 paychecks per year. Semi-monthly means twice per month on fixed dates (like the 1st and 15th), for 24 paychecks per year. Your annual salary and total taxes are identical either way — only the per-check amount differs. Semi-monthly checks are slightly larger (salary ÷ 24 vs ÷ 26), but bi-weekly gives you two months each year with a third paycheck.
Submit a new Form W-4 to your employer's HR or payroll department. You can update it at any time — there is no limit. Common reasons to update: marriage or divorce, having a child, starting a second job, or getting a large tax refund or unexpected tax bill. The IRS Tax Withholding Estimator at IRS.gov can help you fill it out correctly.
Nine states have no state income tax as of 2026: Alaska, Florida, Nevada, New Hampshire (wages only), South Dakota, Tennessee, Texas, Washington, and Wyoming. Residents of these states keep more of their paycheck compared to high-tax states like California or New York.
FICA stands for Federal Insurance Contributions Act. It has two parts: Social Security (6.2% on wages up to $184,500 in 2026) and Medicare (1.45% on all wages). Your employer matches your contributions dollar for dollar. You cannot opt out of FICA as a regular W-2 employee — it is mandatory. However, if you earn over $184,500, Social Security withholding automatically stops for the rest of the year.
Yes. Traditional 401(k) contributions, HSA contributions, and health insurance premiums (through employer plans under Section 125) reduce your taxable wages for federal and state income tax purposes. This means less federal and state tax withheld each paycheck. However, traditional 401(k) and health insurance contributions are still subject to FICA taxes. HSA contributions through payroll are exempt from FICA too.
This calculator uses the IRS Pub 15-T 2026 Percentage Method based on your W-4 inputs. Actual withholding can differ if your employer uses the Wage Bracket Method, if you have multiple jobs, year-to-date wages near the Social Security wage base, mid-year W-4 changes, bonuses taxed at the flat 22% supplemental rate, local taxes, or state-specific credits not modeled here. Use this calculator as an estimate — your actual pay stub is the authoritative source.
The Social Security wage base for 2026 is $184,500 (up from $176,100 in 2025). This means Social Security tax (6.2%) only applies to the first $184,500 of your annual wages. Once your year-to-date wages exceed $184,500, your employer stops withholding Social Security tax. Medicare tax (1.45%) has no wage limit and applies to all wages throughout the year.
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