From gross to net, line by line
A paycheck shrinks in three independent ways, and this calculator runs all three. First, pre-tax deductions (a 401(k) deferral, health premium, HSA) come out before any tax touches them — every dollar deferred saves both income tax and, for most plans, FICA. Second, FICA: 6.2% Social Security on wages up to the 2026 ceiling of $184,500, plus 1.45% Medicare on every dollar with no ceiling, plus the 0.9% additional Medicare tax once wages pass $200,000 ($250,000 joint). Third, federal income tax, estimated from your annualized pay minus deductions against the 2026 brackets — this is a planning estimate, since your real withholding follows the W-4 you filed, not a perfect simulation.
How the state layer works
State income tax is the difference a state line makes. Nine states levy no wage tax at all in 2026 — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — so a $72,000 salary nets meaningfully more in Austin than in Portland. Flat-tax states apply one rate (Pennsylvania 3.07%, Arizona 2.5%, Illinois 4.95%); graduated states apply layers like the federal system. This engine uses each state’s latest published rate for flat states and a simplified bracket model for graduated ones — accurate enough for planning, but treat it as an estimate and confirm exact tables with your state revenue agency before making a move decision.
A worked example: $72,000 in Texas vs California
Biweekly gross on $72,000 is $2,769.23. In Texas: FICA takes $211.87 (7.65% federal insurance), federal income tax with the standard deduction lands near $168 biweekly, and state tax takes $0 — net roughly $2,389. In California the same salary adds about $96 of simplified state tax per period, netting near $2,293. Over a year that gap approaches $2,500 — real money, though cost-of-living and local taxes narrow it. Run both states in the dropdown and the breakdown rows update instantly; the calculator keeps every figure per-paycheck so the number matches what actually hits your bank.
Why your real paycheck sometimes differs
Three legitimate reasons. Your W-4 may claim dependents or other income that shifts withholding away from the symmetric estimate — a legitimate choice, not an error. Local taxes (NYC, Yonkers, Ohio municipalities, most Pennsylvania localities) stack on top of state tax and are too jurisdiction-specific for a state dropdown. And supplemental wages like bonuses are withheld at a flat 22% federal rate, which can make a bonus paycheck look over-withheld even when your annual return balances out — the bonus calculator shows exactly that effect.
Hourly, overtime and irregular hours
Switch the pay type to hourly and the tool annualizes your wage times 2,080 hours (40 × 52) — edit the salary figure it produces if your hours differ. Overtime hours should generally be added at 1.5× into the hourly input, and remember the 2026 OBBBA rule: up to $12,500 of qualified overtime ($25,000 joint) is deductible from federal taxable income, which the income tax calculator handles explicitly. Salaried-exempt workers see the cleanest math — one number in, one number out — while variable-hour workers get the most value from running two or three scenarios and planning on the low one.
Estimates for planning only — not tax, legal or accounting advice. Your actual return depends on facts this tool does not ask about. Figures are based on IRS Revenue Procedure 2025-32 (tax year 2026), verified October 2026.