Methodology and Sources

How every number on this site is calculated, and where each input comes from.

Step by step

1. Gross pay. An annual salary is used as entered. An hourly wage is multiplied by hours per week and by 52.
2. Pre-tax retirement contribution. The 401(k) percentage you enter is subtracted from wages before federal income tax. Social Security and Medicare are still calculated on the full gross wage.
3. Federal income tax. The 2026 standard deduction for your filing status ($16,100 single, $32,200 married filing jointly, $24,150 head of household) is subtracted, and the remainder is taxed in marginal brackets from 10% to 37%.
4. Social Security. 6.2% of wages up to the 2026 wage base of $184,500.
5. Medicare. 1.45% of all wages, plus 0.9% Additional Medicare tax on wages above $200,000.
6. State income tax. Applied with each state's own rate or brackets, deductions and exemptions, and shown on its state page.
7. Local tax and state payroll deductions. Local earned-income tax is entered as a percentage you control. State disability or similar premiums, where relevant, are shown as separate lines.
8. Take-home pay. Gross pay less all of the above, divided by the number of pay periods in a year.

Worked example

A single filer in a state with no income tax who earns $60,000 a year and is paid every two weeks has about $5,020 of federal income tax, $3,720 of Social Security tax and $870 of Medicare tax withheld across the year. That leaves $50,390 a year, or about $1,938.08 per paycheck.

Sources

• Federal income tax brackets and standard deductions: IRS Revenue Procedure 2025-32 (2026 inflation adjustments).
• Social Security wage base: Social Security Administration, 2026 contribution and benefit base.
• Medicare and Additional Medicare rates: Internal Revenue Code sections 3101 and 3102.
• State rates, deductions and exemptions: each state's department of revenue or taxation, for the 2026 tax year.

States we publish

We currently publish 9 state calculators and one page covering the 9 states that do not tax wages. A state is added only after its rate and deductions are confirmed from an official source. States with local taxes, unusual withholding rules or unconfirmed 2026 figures are held back instead of being estimated loosely.

What the calculator does not do

• It covers wages only. It does not model self-employment income, investment income or tax credits.
• It does not model dependents, itemized deductions, the W-4 step 2 to 4 adjustments, or additional withholding.
• It does not include health premiums, HSA or FSA deductions, union dues or garnishments.
• Bonuses and overtime are not withheld separately. Enter an annual total for a rough idea.

Corrections

If you find a figure that does not match an official publication, please send the page address and the source to contact@takehomebuddy.com. Confirmed errors are corrected and the calculators are rebuilt.

Last reviewed: October 2026.