What Gets Deducted From Your Paycheck?
Every paycheck has two categories of deductions:
- Taxes: Federal income tax, Social Security, and Medicare (collectively called FICA). State and local taxes apply in most states.
- Benefits: Health insurance premiums, 401(k) contributions, FSA/HSA contributions, and other employer-sponsored benefits.
This calculator covers federal taxes only. Your actual take-home pay will be lower if you have state taxes or benefit deductions.
Federal Income Tax Withholding
Federal income tax is withheld based on your annualized gross pay, minus the standard deduction for your filing status. The result is your estimated taxable income, and the corresponding tax is divided by your number of pay periods.
This method mirrors the IRS percentage method for withholding and is accurate for most employees with a standard W-4 (no Step 3 dependent credits or Step 4 adjustments).
FICA Taxes: Social Security and Medicare
| Tax | Rate | Wage Limit |
|---|---|---|
| Social Security | 6.2% | $176,100 (2025) / $184,500 (2026) |
| Medicare | 1.45% | No limit |
| Additional Medicare | 0.9% | Wages over $200K (single) / $250K (MFJ) |
Your employer also pays a matching 6.2% Social Security and 1.45% Medicare — these don't come out of your paycheck but are part of the total cost of employing you.
How to Increase Your Take-Home Pay
- Contribute to a pre-tax 401(k): Contributions reduce your taxable income dollar-for-dollar, lowering federal income tax withholding.
- Use an FSA or HSA: Pre-tax contributions for medical expenses reduce both income tax and FICA.
- Update your W-4: If you're over-withholding (getting a large refund each year), adjusting your W-4 can increase each paycheck.
- Claim eligible tax credits: The Child Tax Credit and other credits reduce your overall tax liability at filing.
Frequently Asked Questions
Why is my actual withholding different from this estimate?
Several factors can cause differences: pre-tax benefit deductions (401k, health insurance), W-4 adjustments like dependent credits or additional withholding, multiple jobs, or mid-year changes. This calculator assumes a standard W-4 with no adjustments.
What is the difference between gross and net pay?
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what's deposited in your account after taxes and other deductions are removed.
How much federal tax is taken out of a paycheck?
It depends on your income and filing status. For most workers, federal income tax ranges from 10%–22% of gross pay. Add 7.65% for FICA (Social Security + Medicare) and total federal deductions typically range from 17%–30% for middle-income earners.
Do I pay Social Security tax on all my wages?
No. Social Security tax (6.2%) only applies to wages up to the annual wage base ($176,100 in 2025, $184,500 in 2026). Once you hit that cap, Social Security withholding stops for the rest of the year. Medicare tax (1.45%) has no cap.