How to Read Your US Paycheck (2026)

The gap between your salary and your bank deposit comes from four buckets: federal income tax, FICA (Social Security and Medicare), state income tax, and your own pre-tax elections such as a 401(k) or health premiums. Once you can place every pay-stub line into one of those buckets, no paycheck is confusing.

1. Gross pay vs taxable wages

Gross pay is your salary for the period. Federal taxable wages are usually smaller: pre-tax deductions — traditional 401(k)/403(b) contributions, most health, dental and vision premiums, HSA and FSA contributions — come out before income tax is calculated. Note that 401(k) contributions reduce income tax but not Social Security or Medicare, which are charged on your full wages.

2. Federal income tax

For tax year 2026, a single filer's standard deduction is $16,100 ($32,200 married filing jointly, $24,150 head of household). Income above it is taxed in brackets — for a single filer:

• 10% on taxable income up to $12,400
• 12% from $12,400 to $50,400
• 22% from $50,400 to $105,700
• 24% from $105,700 to $201,775
• 32%, 35% and 37% above that

Only the income inside each bracket is taxed at that bracket's rate. A raise into a higher bracket never reduces your take-home pay — only the extra dollars are taxed at the higher rate.

3. FICA: Social Security and Medicare

• Social Security: 6.2% of wages, up to the 2026 wage base of $184,500. Above that, the deduction stops for the year.
• Medicare: 1.45% of all wages, with no cap.
• Additional Medicare: an extra 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).

Your employer pays a matching 6.2% + 1.45% on top — it just never appears on your stub.

4. State income tax

Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — charge no state income tax on wages. The rest use flat rates or progressive brackets, and a few cities and counties add local tax. See take-home pay in every state for how much this varies.

Worked example: $70,000, single, no-tax state

• Federal income tax: $6,570 (on $53,900 taxable after the standard deduction)
• Social Security: $4,340 (6.2% of $70,000)
• Medicare: $1,015 (1.45% of $70,000)
• Take-home: $58,075/year ≈ $4,840/month — an effective tax rate of 17%

In a state with income tax the same salary lands lower — around $55,458 in California. See the full 50-state table for $70,000 after taxes, or pick any salary from $30k to $250k.

Open this example in the paycheck calculator to see the same breakdown line by line — then switch the state to California to watch the state-tax line appear.

Checking your own numbers

If your withholding looks off, the usual causes are an outdated W-4, a second job, or bonus withholding at the flat supplemental rate. Estimate what your paycheck should be with the US Paycheck Calculator (filing status, state, and 401(k) included), and verify the official figures at IRS.gov and SSA.gov.