How We Calculate Take-Home Pay (2026)
Published by the MyTakeHomeCalc team · figures last reviewed October 2026 · report a correction
Every number on MyTakeHomeCalc comes from one calculation engine that follows the same steps an employer's payroll system uses. This page lists those steps, the official source for each tax figure, and the things the calculator deliberately leaves out, so you can judge how far to trust a result.
The calculation, step by step
- Start with gross pay, then subtract pre-tax deductions you enter. A traditional 401(k) lowers income tax only; health premiums, FSA and HSA payroll contributions lower both income tax and Social Security and Medicare wages.
- Subtract the 2026 standard deduction for your filing status, plus any optional deductions you choose (the 2026 overtime, tips, car-loan interest and senior deductions).
- Apply the 2026 federal brackets to taxable income, then subtract child tax credits ($2,200 per child under 17) if you enter them.
- Add Social Security (6.2% up to $184,500), Medicare (1.45%) and the 0.9% Additional Medicare tax above its threshold.
- Add state income tax from that state's official 2026 employer withholding formula (see below).
- Subtract all taxes and deductions from gross pay to get net pay, then divide by pay periods for the per-paycheck figures.
Worked example: $60,000 salary, single filer, no state income tax
| Gross pay | $60,000 |
| Taxable income after $16,100 standard deduction | $43,900 |
| Federal income tax | −$5,020 |
| Social Security (6.2%) | −$3,720 |
| Medicare (1.45%) | −$870 |
| Take-home pay | $50,390 ($4,199 a month) |
Official sources for each figure
| Figure | 2026 value used | Source |
|---|---|---|
| Federal income tax brackets and standard deduction | 7 brackets, 10% to 37%; standard deduction $16,100 single, $32,200 married filing jointly, $24,150 head of household | IRS Revenue Procedure 2025-32 |
| Social Security wage base | 6.2% on wages up to $184,500 | Social Security Administration: contribution and benefit base |
| Medicare and Additional Medicare | 1.45% on all wages; extra 0.9% above $200,000 single, $250,000 married filing jointly | IRS Topic 751 and Additional Medicare Tax Q&A |
| 401(k) and HSA limits | 401(k) $24,500; HSA $4,400 self-only, $8,750 family | IRS Notice 2025-67 |
| Payroll withholding method | Annualised wages, standard deduction and bracket tax, divided by pay periods | IRS Publication 15-T |
How state income tax is calculated
State income tax is each state's own 2026 employer withholding formula, taken from the state revenue department's employer guide. That is the amount an employer is expected to take from each paycheck, which is what a take-home calculator is asked about. It is not the same as the tax you owe on your return: credits, itemized deductions and other income can make the final bill higher or lower, which is why many people get a refund or owe a small balance.
For states where we have added extra detail (California, Massachusetts, Colorado and others), the state page lists the official page we checked and the month we checked it.
What the calculator does not include
- State payroll premiums in the main calculator. California State Disability Insurance (1.3% in 2026), Massachusetts PFML, Colorado FAMLI, Washington's paid leave and long-term care premiums and similar deductions are not subtracted in the headline take-home figure. This makes take-home slightly high in those states. The California, Massachusetts and Colorado pages show the adjusted amount.
- Local income taxes. City and county taxes (for example in New York City, Ohio and Pennsylvania) are excluded. Maryland uses the default county rate.
- Your full tax return. Itemized deductions, other income, the earned income credit and similar items are not modeled.
- Employer differences. Benefit costs, garnishments and company-specific deductions vary; enter them as pre-tax or post-tax amounts if you know them.
How we check the numbers
The tax engine is covered by automated checks that compare its output with hand-worked federal examples, with the worked examples printed in several state withholding guides (for example Minnesota, Maryland, Wisconsin and Virginia) and with published formulas for other states. Hourly, salary and state page text is generated from the same engine rather than typed by hand, so a page cannot quote a different number from the calculator. The tax data was audited against the official sources above in October 2026.
When we update
Federal and state figures change every January. We review every rate, limit and withholding formula when the IRS, the Social Security Administration and the state revenue departments publish their new numbers, update the existing pages in place, and change the "last reviewed" date. Figures on this site were last reviewed in October 2026.
Who we are, and what we are not
MyTakeHomeCalc is an independent calculator site. It is free to use and earns a small commission when readers follow certain partner links; see the About page for how that works. Partners do not influence the calculations. We are not tax professionals, and nothing here is tax or legal advice. For decisions that depend on your exact situation, check with a qualified tax professional or your payroll department.
Found something that looks wrong? Tell us which page and which figure, and we will check it against the source and correct it.