About Paycheck Calculator

It takes your gross wages (annual salary or hourly rate multiplied by hours worked) and subtracts pre-tax contributions—such as 401(k) retirement contributions and health insurance premiums—to calculate your tax bases. It then applies the 2026 progressive federal tax brackets, FICA payroll taxes (Social Security & Medicare), and state tax schedules to determine your final net take-home pay.

We support four states with distinct tax rules for 2026: Virginia (progressive tax up to 5.75% + standard deduction + personal exemptions), California (progressive tax up to 12.3% + state standard deduction), New York (progressive tax up to 10.9% + state standard deduction), and Texas (flat 0% state income tax). The engine dynamically adjusts deduction parameters based on your selection.

Standard paycheck calculations treat each job separately, which often leads to under-withholding. Pro Mode unlocks advanced calculations: if you work a second job, the engine stacks your secondary wages on top of your primary job's tax brackets. This applies the correct progressive rate compression to estimate your actual tax liability accurately.

Retirement contributions (traditional 401k) reduce your taxable income for federal and state income taxes, but are still subject to FICA. Benefit premiums (health insurance, HSA, FSA) are completely tax-exempt, meaning they reduce your taxable income across federal, state, and FICA taxes, maximizing your take-home pay savings.

FICA consists of Social Security (6.2% withheld up to the 2026 wage cap of $184,500) and Medicare (1.45% withheld with no wage limit). These taxes are mandatory contributions for federal insurance programs and are matched by your employer.