A free payroll calculator for salaried employees, job seekers comparing offers across states, and anyone estimating take-home pay. Enter your annual gross salary, filing status, and state to see your net pay after federal income tax, state income tax, Social Security, and Medicare — using official 2026 IRS tax brackets and FICA rates.
Quick Answer
A payroll calculator works out your net (take-home) pay by subtracting federal income tax, state income tax, and FICA (Social Security + Medicare) from your gross salary. It's built for salaried employees checking an offer, job seekers comparing pay across different states, and anyone who wants a quick estimate without running full payroll software.
The difference between gross and net pay varies widely depending on your income, filing status, state, and deductions — this calculator uses official 2026 IRS federal brackets and FICA rates so the federal and payroll-tax portion of the estimate is precise; state tax is a simplified estimate (exact for flat-tax and no-tax states, approximate for graduated-bracket states).
How Gross Salary Becomes Net Pay
Your gross salary — the number in your offer letter — passes through several layers of tax before becoming your net pay. That means federal income tax (progressive, based on your filing status and IRS tax brackets), state income tax (which varies enormously — from 0% in nine states to over 13% in California's top bracket), and FICA payroll taxes (Social Security and Medicare, which fund federal retirement and healthcare programs). Understanding how each layer works helps explain why two people with identical gross salaries in different states can take home noticeably different amounts.
How Payroll Is Calculated
Net Pay = Gross Salary − Federal Tax − State Tax − Social Security − Medicare − Pre-Tax Deductions
Pre-tax deductions like 401(k) contributions and health insurance premiums are subtracted from gross salary before federal and state tax are calculated, which is what makes them valuable — they lower your taxable income, not just your take-home pay. FICA taxes (Social Security and Medicare) are calculated on a slightly different base than federal/state tax in some cases, but for most standard 401(k) and Section 125 health plans, both are also excluded from FICA wages.
| 2026 Federal Bracket (Single) |
Taxable Income Range |
Rate |
| Bracket 1 | $0 – $12,400 | 10% |
| Bracket 2 | $12,400 – $50,400 | 12% |
| Bracket 3 | $50,400 – $105,700 | 22% |
| Bracket 4 | $105,700 – $201,775 | 24% |
| Bracket 5 | $201,775 – $256,225 | 32% |
| Bracket 6 | $256,225 – $640,600 | 35% |
| Bracket 7 | Above $640,600 | 37% |
2026 standard deduction: $16,100 (Single) / $32,200 (Married Filing Jointly). Only the income inside each bracket is taxed at that bracket's rate — moving into a higher bracket never re-taxes the dollars below it. Source: IRS Revenue Procedure 2025-32.
| 2026 Federal Bracket (Married Filing Jointly) |
Taxable Income Range |
Rate |
| Bracket 1 | $0 – $24,800 | 10% |
| Bracket 2 | $24,800 – $100,800 | 12% |
| Bracket 3 | $100,800 – $211,400 | 22% |
| Bracket 4 | $211,400 – $403,550 | 24% |
| Bracket 5 | $403,550 – $512,450 | 32% |
| Bracket 6 | $512,450 – $768,700 | 35% |
| Bracket 7 | Above $768,700 | 37% |
Head of Household and Married Filing Separately use their own bracket schedules — both are supported in the calculator above and follow the same seven-rate structure with different thresholds. Source: IRS Revenue Procedure 2025-32 / IRS Notice 2025-67.
FICA: Social Security and Medicare
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare, and unlike federal income tax, they're flat-rate rather than progressive — though Social Security has an important cap. In 2026, you pay 6.2% of wages toward Social Security up to $184,500 in annual earnings; beyond that, no further Social Security tax applies for the rest of the year. Medicare has no cap — you pay 1.45% on every dollar of wages — plus an Additional Medicare Tax of 0.9% once your wages exceed $200,000 (Single) or $250,000 (Married Filing Jointly).
| FICA Tax |
Rate |
2026 Wage Cap |
| Social Security | 6.2% | $184,500 |
| Medicare | 1.45% | No cap |
| Additional Medicare | +0.9% | Above $200K (Single) / $250K (MFJ) |
State Income Tax and Take-Home Pay
State tax is where take-home pay diverges most between two people with identical gross salaries. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — charge no state income tax on wages at all. Fourteen states use a single flat rate for every taxpayer regardless of income. The remaining states use graduated brackets similar to the federal system, with top rates reaching as high as 13.3% in California. This calculator applies each state's exact flat rate where one exists, and a representative rate for graduated-bracket states — clearly marked so you know when the figure is a simplified estimate rather than an exact bracket calculation.
Why Your Actual Paycheck Might Differ From This Estimate
This calculator provides a solid federal-level estimate, but real paychecks can include items this simplified tool doesn't model — local or city income tax (New York City, Philadelphia, and several Ohio and Pennsylvania municipalities all levy their own), HSA or FSA contributions, itemized deductions instead of the standard deduction, tax credits (like the Child Tax Credit) that reduce your actual liability, or a W-4 withholding election that doesn't perfectly match your true annual tax bill. Comparing this estimate against an actual pay stub helps identify which of these factors apply to your specific situation.
Take-Home Pay Examples for $50K, $85K, $150K and $250K Salaries
Here's how gross-to-net plays out for a single filer with a 5% 401(k) contribution and $300/month health premium, in a state with no income tax (like Texas) versus a moderate flat-tax state:
| Gross Salary |
Federal Tax |
FICA |
Net (Texas, 0% state) |
Net (Colorado, 4.4% flat) |
| $50,000 | $3,088 | $3,358 | $37,454 | $35,522 |
| $85,000 | $8,143 | $5,902 | $63,105 | $59,710 |
| $150,000 | $22,070 | $10,626 | $106,204 | $100,093 |
| $250,000 | $46,152 | $15,136 | $172,612 | $162,321 |
Illustrative figures assuming Single filer, 5% 401(k), $300/month health premium. Run your own exact numbers using the calculator above.
Common Payroll Estimate Mistakes
⚠ Forgetting FICA when comparing to income tax calculators
Some tools only show federal + state income tax — remember Social Security and Medicare add another 7.65% (or more) on top for most earners.
⚠ Assuming no state tax means a lower total tax burden
No-income-tax states often offset the gap with higher property or sales taxes — compare total cost of living, not just the payroll line.
⚠ Treating the top tax bracket as your overall rate
Moving into a higher bracket only taxes the income inside that bracket at the new rate — not your entire salary.
⚠ Ignoring pre-tax benefits when comparing offers
A lower-gross offer with strong 401(k) matching or cheaper health premiums can beat a higher-gross offer on actual net pay.
How to Use This Calculator
- 1Enter your annual gross salary using the slider or by typing the figure from your offer letter.
- 2Select your filing status — Single or Married Filing Jointly.
- 3Choose your state — the note below the dropdown tells you if the rate is exact or a simplified estimate.
- 4Set your 401(k) contribution and monthly health insurance premium, or leave at the defaults.
- 5Your net take-home pay and full tax breakdown update instantly as you adjust any field.