Paycheck Estimator

How this paycheck estimate works

The estimator first turns one paycheck into annual pay by multiplying by the number of paychecks in your schedule, because US income tax is ultimately calculated on annual income. From that annual figure it subtracts the standard deduction for a single filer (simplified here at $16,100 for 2026), then applies the federal brackets in slices: the first slice of taxable income is taxed at 10%, the next at 12%, then 22%, and so on up through 37% for very high incomes. That slicing is why your effective rate is always lower than the bracket your top dollar falls into. If you are "in the 22% bracket," only the dollars above the 12% threshold are taxed at 22%; everything below is taxed at the lower rates it passed through on the way up.

On top of income tax, the estimator deducts FICA, the payroll tax that funds Social Security and Medicare. Social Security takes 6.2% of wages up to an annual wage cap (simplified here at $176,100), and Medicare takes 1.45% of all wages, with an extra 0.9% on earnings above $200,000 for single filers. Your employer pays a matching share that never appears on your paycheck. Dividing the annual tax back by your number of paychecks gives the per-paycheck figures shown above. What this deliberately leaves out is everything state and local: state income tax (which ranges from zero to over 10% depending on where you live), pre-tax deductions for health insurance and retirement plans, and credits or extra withholding you may have chosen on your W-4.

Practical tips for reading your pay stub

Compare this estimate with your real stub line by line. If your actual federal withholding is much higher than the estimate, you are likely headed for a refund, which is an interest-free loan to the government; adjusting your W-4 can move that money into each paycheck instead, though you should keep a cushion if your income varies. If it is much lower, check whether bonuses, a second job, or side income are being under-withheld, because those are the usual causes of a surprise tax bill in April. When you evaluate a job offer, run the salary through this estimator at the right pay frequency, and remember that biweekly pay produces two months a year with three paychecks, which many households treat as built-in savings for annual bills.