How to Calculate Your Paycheck After Taxes

Published Apr 13, 2026 · 6 min read

Your gross pay and your take-home pay are very different numbers. Understanding the gap helps you budget accurately and avoid surprises.

What Gets Deducted

Every paycheck goes through several deductions before it reaches your bank account:

• Federal income tax — Based on your W-4 withholding and tax bracket (10% to 37% in 2026).
• State income tax — Varies by state (0% in Texas, Florida; up to 13.3% in California).
• FICA — Social Security (6.2%) + Medicare (1.45%) = 7.65% of gross pay.
• Pre-tax deductions — 401(k) contributions, health insurance, HSA, FSA.
• Post-tax deductions — Roth 401(k), garnishments, union dues.

Step-by-Step Example

Let's say you earn $75,000/year, paid biweekly (26 paychecks), single filer, no state tax, contributing 6% to 401(k):

That's about 75% of your gross pay. Most Americans take home between 65-80% of their gross salary.

How to Maximize Take-Home Pay

• Contribute to pre-tax retirement accounts (traditional 401k, HSA)
• Claim all eligible allowances on W-4
• Use tax-advantaged benefits like FSA for medical expenses
• If you consistently get large refunds, adjust your withholding