Guide
US take-home pay 2026: federal tax, FICA and state tax explained
A US job offer quotes a gross salary. What lands in your bank account after federal income tax, FICA (Social Security and Medicare) and (in most places) state tax is take-home pay. This guide walks through the 2026 rules for one W-2 job, then works an example. It is general education, not tax advice. Figures are for tax year 2026, checked on 2026-10-05.
To estimate your own figure, use the US take-home pay calculator. US tools sit on the US region page.
What is deducted from a US salary in 2026?
| Deduction | 2026 rate or amount | Notes |
|---|---|---|
| Federal income tax | 10%–37% brackets | After the standard deduction; Child Tax Credit may reduce it |
| Social Security (OASDI) | 6.2% of wages | Cap $184,500 (max $11,439.00) |
| Medicare | 1.45% of wages | No wage cap |
| Additional Medicare | 0.9% above $200,000 / $250,000 MFJ | Shown as year-end liability |
| State income tax | None, or CA / NY / IL / PA / MA rules | Nine states have no wage tax |
| State payroll items | CA SDI, NY SDI/PFL, PA UC, MA PFML, AK UI, WA PFML/Cares | Where the state requires them |
The 2026 federal standard deduction is $16,100 (Single), $32,200 (married filing jointly) and $24,150 (head of household). Those amounts already reflect the One, Big, Beautiful Bill Act changes that Rev. Proc. 2025-32 published for 2026.
Take-home pay = gross wages − pre-tax 401(k) − pre-tax HSA − federal income tax − Social Security − Medicare − Additional Medicare − state income tax − state payroll items
Pre-tax 401(k) and HSA lower federal (and most state) taxable wages. Social Security and Medicare still apply to 401(k) deferrals; HSA contributions through payroll avoid all three.
How do state taxes differ?
Nine states charge no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Alaska still takes employee unemployment insurance (0.5% up to a wage base). Washington takes paid family and medical leave and, unless you are exempt, WA Cares.
Five taxed states are in the calculator:
- California — progressive brackets, plus SDI at 1.3% with no wage limit.
- New York — progressive brackets plus a tax-table benefit recapture that raises the effective rate as income rises; SDI and Paid Family Leave are deducted.
- Illinois — flat 4.95% after a personal exemption that phases out at high AGI.
- Pennsylvania — flat 3.07% on wages; traditional 401(k) deferrals stay taxable for PA purposes.
- Massachusetts — flat 5% (plus a 4% surtax on income over $1,107,750), with PFML at 0.46% of wages up to the Social Security wage base.
Local and city taxes — New York City, Yonkers, Pennsylvania local earned income tax, Philadelphia wage tax and similar — are not included.
Worked example: $60,000, Single, Texas (US-01)
| Step | Calculation | Result |
|---|---|---|
| Gross wages | $60,000.00 | |
| Federal AGI | no 401(k) or HSA | $60,000.00 |
| Standard deduction | Single | $16,100.00 |
| Taxable income | 60,000 − 16,100 | $43,900.00 |
| Federal income tax | 10% / 12% schedule | $5,020.00 |
| Social Security | 60,000 × 6.2% | $3,720.00 |
| Medicare | 60,000 × 1.45% | $870.00 |
| State tax | Texas has none | $0 |
| Take-home pay | 60,000 − 5,020 − 3,720 − 870 | $50,390.00 a year |
That is about $4,199.17 a month, $2,099.58 semi-monthly, or $1,938.08 biweekly. The effective rate is 16.02%.
Other verified cases from the same method:
| Case | Gross | Net / year |
|---|---|---|
| CA Single $85,000 with $5,000 401(k) | $85,000 | $60,557.38 |
| NY MFJ $120,000, $10,000 401(k), $4,000 HSA | $120,000 | $83,798.19 |
| TX MFJ $90,000, 2 children (CTC $4,400) | $90,000 | $81,075.00 |
| TX Single 65+, $50,000 | $50,000 | $43,321.00 |
A few dollars may differ from a filed return because tax tables use band midpoints below certain income levels, while this method uses the exact rate schedules.
What the calculator leaves out
These simplifications are also listed on the calculator page:
- Year-end 2026 liability, not Pub 15-T withholding. Real paychecks depend on your W-4, bonuses and how many pay periods the year has.
- One W-2 job. Married filing jointly assumes the spouse has no wages.
- Standard deduction only (including age 65+ and the senior deduction). Itemizing, tips and overtime deductions, AMT and credits other than the nonrefundable Child Tax Credit are out.
- The refundable Additional Child Tax Credit and the $500 credit for other dependants are excluded.
- Local and city taxes are excluded.
- State dependant and age amounts are not applied.
Related guides
- US take-home pay by state 2026: the same $75,000 salary across 14 states.
- Japan take-home pay 2026: the same question for a Japanese salary.
- US dividend withholding tax explained: how US dividends are taxed for non-US investors.
Sources
All checked on 2026-10-05; figures are for tax year 2026.
- IRS, Rev. Proc. 2025-32 (2026 brackets, standard deduction, Child Tax Credit)
- SSA, 2026 contribution and benefit base ($184,500; Social Security 6.2%, Medicare 1.45%)
- IRS, Additional Medicare Tax (Form 8959)
- California FTB 2026 indexing; EDD SDI rates
- New York Tax Law §601; DTF 2026 rate schedules
- Illinois Department of Revenue; Pennsylvania Department of Revenue; Massachusetts DOR
This page is general education, not tax advice. See the disclaimer.