Quick answer: Net pay = gross pay − federal income tax − Social Security (6.2%) − Medicare (1.45%) − pre-tax deductions − state tax. Federal tax applies the seven 2026 brackets (10% to 37%) to your pay after the standard deduction, so only the income inside each bracket is taxed at that rate.
How the payroll calculator works
net pay = gross − federal tax − FICA − state tax − pre-tax deductionsFederal tax is worked out on gross − pre-tax deductions − standard deduction.- Annualise your pay using the pay frequency, so a $2,884.62 bi-weekly check becomes $75,000 a year.
- Subtract pre-tax deductions and the standard deduction to get federal taxable income.
- Apply the brackets progressively. Each slice of income is taxed at its own rate, not your top rate.
- Add FICA on gross wages: 6.2% Social Security up to the wage base, 1.45% Medicare, plus 0.9% above the Additional Medicare threshold.
- Subtract everything from gross and divide by the number of paychecks.
Worked example: single, $75,000 a year, paid bi-weekly
$75,000 salary, single filer, no pre-tax deductions or state tax
- Taxable income: $75,000 − $16,100 standard deduction = $58,900
- Federal tax: 10% of $12,400 ($1,240) + 12% of $38,000 ($4,560) + 22% of $8,500 ($1,870) = $7,670
- FICA: $4,650 Social Security + $1,087.50 Medicare = $5,737.50
- Net: $75,000 − $7,670 − $5,737.50 = $61,592.50 a year
- Per paycheck: $61,592.50 ÷ 26 = $2,368.94
Result: $2,368.94 every two weeks (17.88% effective rate)
2026 federal income tax brackets
Marginal rates for income earned in 2026, published by the IRS in Revenue Procedure 2025-32.
| Rate | Single | Married jointly | Married separately | Head of household |
|---|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $12,400 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $12,400 – $50,400 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $50,400 – $105,700 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 | $105,700 – $201,750 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,225 | $201,750 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,225 – $384,350 | $256,200 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
2026 standard deduction: $16,100 single, $32,200 married filing jointly, $16,100 married filing separately, $24,150 head of household.
How FICA is calculated for 2026
- Social Security: 6.2% of wages up to the $184,500 wage base, a maximum of $11,439.
- Medicare: 1.45% of all wages, with no cap.
- Additional Medicare Tax: 0.9% on wages above $200,000 (single and head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). These thresholds are fixed by law.
FICA is charged on gross wages, so the standard deduction does not reduce it. Most pre-tax deductions such as a traditional 401(k) lower federal taxable income but not FICA wages. Some Section 125 health premiums reduce both, and this tool does not separate deduction types.
What this calculator does not include
Not included: State and local income tax (unless you enter a rate), your W-4 elections and extra withholding, tax credits, itemized deductions, supplemental wage rules for bonuses, and employer-side payroll taxes. Use it for planning, not filing.
Who uses a payroll calculator
- Job seekers comparing take-home pay between offers.
- Employees checking whether withholding looks right.
- Hourly and salaried staff budgeting around net pay.
- Small business owners and HR estimating before a payroll run.
Frequently asked questions
How much federal tax comes out of my paycheck?
Your annual gross pay minus pre-tax deductions and the 2026 standard deduction is taxed across seven brackets from 10% to 37%. A single filer earning $75,000 pays about $7,670 in federal income tax for the year, before FICA.
What is the 2026 standard deduction?
$16,100 for single filers, $32,200 for married filing jointly, $16,100 for married filing separately and $24,150 for head of household, per IRS Revenue Procedure 2025-32.
How much is FICA in 2026?
7.65% of gross wages for most employees: 6.2% Social Security up to the $184,500 wage base plus 1.45% Medicare with no cap. An extra 0.9% Additional Medicare Tax applies above $200,000 ($250,000 married filing jointly, $125,000 married filing separately).
Does this calculator include state tax?
Only if you enter a rate. State rules vary widely, so state tax stays at 0% unless you add your own approximate rate. New York residents can use the NY State Tax Calculator.
How much is $75,000 a year after taxes?
For a single filer with no pre-tax deductions or state tax, about $61,592.50 a year after federal tax and FICA, or roughly $2,368.94 every two weeks.
What is the Social Security wage base for 2026?
$184,500. Wages above it are not subject to the 6.2% Social Security tax, but the 1.45% Medicare tax still applies.
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Accuracy note: Brackets and standard deductions are checked against IRS Revenue Procedure 2025-32 and the wage base against the Social Security Administration. This is an estimate for planning, not tax or payroll advice. Confirm figures with your employer or a tax professional.
Content Lead, Anchor AI Tools, California, USA. Spotted an error? Email hello@anchoraitools.com and it will be checked and corrected. See our editorial standards.