PaycheckTaxCalc

Methodology · Updated 2026

Untangling the math
behind your paycheck.

We transform messy tax code into a predictable, transparent formula. Below is the exact eight-step methodology PaycheckTaxCalc uses to calculate your true take-home pay — entirely in your browser, with no data sent to a server.

Phase 1 · The Baseline

Annualize gross pay

01

We convert your entry to an annual figure. Per-paycheck amounts are multiplied by the pay-period count: weekly × 52, bi-weekly × 26, semi-monthly × 24, monthly × 12, annually × 1.

$3,250×Bi-weekly · 26=$84,500

Pre-tax deductions

02

Traditional 401(k), health insurance, HSA, FSA, and other pre-tax items are subtracted from annual gross pay to arrive at federal taxable wages.

Note: FICA is typically calculated on gross wages before pre-tax deductions, with exceptions for Section 125 plans. For simplicity, we apply FICA to full gross wages — the error is negligible for most users.

Phase 2 · The Assessment

Federal income tax · 2026 brackets

03

We subtract the 2026 standard deduction from federal taxable wages to get federal taxable income, then apply the IRS progressive brackets. Income fills sequential tiers — each taxed at its own rate.

RateSingleMarried · JointHead of Household
10%$0–$12,400$0–$24,800$0–$18,600
12%$12,401–$50,400$24,801–$100,800$18,601–$75,600
22%$50,401–$105,700$100,801–$211,400$75,601–$158,550
24%$105,701–$201,775$211,401–$403,550$158,551–$302,650
32%$201,776–$256,225$403,551–$512,450$302,651–$384,325
35%$256,226–$640,600$512,451–$768,700$384,326–$704,650
37%$640,601+$768,701+$704,651+

Standard deductions: Single $15,750 · Married $31,500 · Head of household $23,625. Source: IRS Rev. Proc. 2025-32.

FICA taxes

04
6.2%Social Security on wages up to $184,500 (2026 wage base).
1.45%Medicare on all wages.
0.9%Additional Medicare on wages above $200K (single) or $250K (MFJ).

State income tax

05

State taxable income equals federal taxable wages minus the state's own standard deduction. We then apply 2026 brackets or flat rates.

No income tax: AKFLNVNHSDTNTXWAWY
Flat rate: COILINKYMAMINCPAUT

State-specific payroll taxes

06

Some states levy additional employee payroll taxes layered on top of state income tax.

California SDI

0.9% on all wages (State Disability Insurance). Source: CA EDD.

New Jersey SDI/TDI & FLI

0.09% each, on wages up to $161,400. Source: NJ DOL.

Phase 3 · The Result

Per-period apportionment

07

All annual figures are divided by your number of pay periods — weekly 52, bi-weekly 26, semi-monthly 24, monthly 12, annually 1.

Net pay formula

08
Gross pay+
Federal income tax−
Social Security & Medicare−
State income tax−
Pre/post-tax deductions−
Net take-home pay=

Limitations

  • ·Does not calculate tax credits (CTC, EITC, etc.).
  • ·Does not account for Alternative Minimum Tax (AMT).
  • ·Does not handle itemized deductions above the standard deduction.
  • ·Does not account for local/city income taxes (NYC, Philadelphia).
  • ·Self-employment income is not covered.

Data sources

  • ·Federal brackets — IRS Rev. Proc. 2025-32 (2026)
  • ·Social Security wage base — SSA.gov
  • ·State rates — individual state revenue depts.
  • ·California SDI — CA EDD
  • ·New Jersey TDI/FLI — NJ Dept. of Labor

Always verify with a qualified tax professional for your specific situation. Tax laws change; rates above reflect the 2026 tax year. PaycheckTaxCalc makes no warranty of accuracy.