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America's Paycheck

How we calculate your paycheck

Every calculator on this site runs the same code. It follows the IRS percentage method that payroll software uses for a Form W-4 from 2020 or later, with the 2026 figures listed below. Tax figures were last reviewed on October 7, 2026.

Step by step

  1. Gross pay. A salary is divided by your number of paychecks. Hourly pay is rate × hours × 52 weeks, then divided the same way.
  2. Pre-tax deductions. A traditional 401(k) is subtracted before federal income tax, up to the 2026 limit of $24,500. Pre-tax health, dental and vision premiums are subtracted before federal income tax, Social Security and Medicare.
  3. Federal income tax. Taxable pay is annualized, the standard deduction for your W-4 filing status is subtracted ($16,100 single, $32,200 married filing jointly, $24,150 head of household) and the 2026 brackets are applied. W-4 credits of $2,200 per child under 17 and $500 per other dependent are subtracted, and the result is divided by your paychecks. If you tick the two-jobs box, the IRS Step 2 schedule with half the standard deduction is used.
  4. Social Security and Medicare. Social Security is 6.2% of wages up to $184,500. Medicare is 1.45% of all wages plus 0.9% on wages over $200,000.
  5. State deductions. State income tax and state payroll programs such as paid leave are added from each state's published rates. Where a state caps a deduction at a wage limit, the cap is applied. States differ on what counts as taxable pay: Pennsylvania, for example, taxes 401(k) contributions, and New Jersey taxes pre-tax health premiums. Some states also use their own withholding form in place of the W-4: Illinois (IL-W-4), Indiana (WH-4), Maryland (MW507), Michigan (MI-W4), New Jersey (NJ-W4), New York (IT-2104), North Carolina (NC-4), Ohio (IT 4) and Virginia (VA-4). Their pages ask for the exemptions or allowances on that form.
  6. Local taxes. Where a state page asks where you live and work, the local income tax and any flat local tax for that place are added. You can also enter your own local rates.

What the estimate assumes

  • Your pay is the same every paycheck for the whole year. Amounts with a yearly cap are spread evenly.
  • No bonuses, overtime, tips or commissions, and no other income or extra deductions on your W-4.
  • Local and city taxes are included only on the Indiana, Maryland, Michigan, New York, Ohio, Pennsylvania pages. Workers' compensation premiums, which some states deduct by the hour, are not included.
  • You live and work in the same state.

The result is what your employer should withhold, which can differ from the tax you owe when you file your return. Results are estimates for information only, not tax advice.

States covered

Alaska, Florida, Illinois, Indiana, Maryland, Michigan, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington, Wyoming. More states are added once their 2026 rules are checked against official sources.

Federal sources

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