How Your Paycheck Is Calculated and What Gets Deducted
Every paycheck you receive has already had several deductions taken out before the money hits your bank account. Understanding what those deductions are — and how they are calculated — helps you budget accurately, set realistic savings goals, and avoid surprises at tax time. This paycheck calculator estimates your take-home pay by applying current federal tax brackets, state income tax rates, Social Security, and Medicare withholding to your gross pay.
Federal Income Tax
The United States uses a progressive tax system, meaning your income is taxed at increasing rates as it passes through defined brackets. For tax year 2024, a single filer pays 10% on the first $11,600 of taxable income, 12% on income from $11,601 to $47,150, 22% on income from $47,151 to $100,525, and so on through the 37% bracket for income over $609,350. Married filers have wider brackets — for example, the 10% bracket extends to $23,200. Before applying these rates, your employer subtracts the standard deduction ($14,600 for single filers, $29,200 for married filing jointly) to arrive at your taxable income. The result is then divided across pay periods to determine the federal tax withheld from each check.
State Income Tax
Most states impose their own income tax on top of federal tax. Rates vary widely — from 0% in states like Texas, Florida, and Nevada to over 13% in California for high earners. This calculator uses a simplified flat effective rate for each state. Some states use progressive brackets similar to the federal system, while others apply a single flat rate to all income. Nine states have no state income tax at all, which means residents keep more of each paycheck but may face higher sales or property taxes to compensate.
FICA: Social Security and Medicare
FICA stands for the Federal Insurance Contributions Act, and it funds two programs. Social Security tax is 6.2% of your gross pay, up to the annual wage base limit ($168,600 in 2024). Medicare tax is 1.45% on all earnings with no cap. If you earn over $200,000 ($250,000 married), an additional 0.9% Medicare surtax applies. Your employer matches these contributions, so the combined FICA rate is actually 15.3%, but only half comes from your paycheck.
Pay Frequency Matters
Your pay frequency affects the per-check deduction amounts but not your total annual tax burden. If you are paid weekly (52 paychecks per year), each check is smaller and each deduction is smaller. If you are paid monthly (12 paychecks per year), each check and each deduction is proportionally larger. The annual totals remain the same regardless of frequency. Understanding this prevents the common misconception that switching from bi-weekly to monthly pay somehow changes your tax situation.
Frequently Asked Questions
Why is my actual paycheck different from this estimate?
This calculator provides a simplified estimate. Your actual paycheck may also include pre-tax deductions for health insurance, 401(k) contributions, HSA contributions, and other benefits that reduce your taxable income. Those are not included here because they vary by employer.
What is the standard deduction?
The standard deduction is an amount the IRS allows you to subtract from your gross income before calculating federal tax. For 2024, it is $14,600 for single filers and $29,200 for married filing jointly. Most taxpayers take the standard deduction rather than itemizing individual deductions.
This paycheck calculator is completely free, runs entirely in your browser, and stores nothing on a server. Bookmark this page to quickly estimate your take-home pay whenever you receive a raise, change jobs, or move to a new state.