What the estimate includes
The calculator is built for a typical employee with wage income only, using tax year 2026 figures.
- Federal income tax. Pre-tax 401(k) and health premiums are subtracted, then the 2026 standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household). The remainder is taxed bracket by bracket from 10% to 37%.
- Social Security at 6.2% of wages up to the $184,500 wage base, and Medicare at 1.45% of all wages plus 0.9% above $200,000 ($250,000 married filing jointly).
- State tax. A single approximate effective rate per state, applied to wages after pre-tax deductions. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming are shown with no wage income tax.
Worked example
Take a single filer in Colorado earning $100,000 a year, paid every two weeks, with no pre-tax deductions. After the $16,100 standard deduction, taxable income is $83,900. Federal income tax is $1,240 + $4,560 + $7,370 = $13,170, Social Security is $6,200 and Medicare is $1,450. Colorado’s flat 4.4% rate adds $4,400 of state tax.
That leaves $74,780 a year, about $6,232 a month or $2,876 per paycheck: a total tax rate of 25.2% with a 22% federal marginal bracket. In Texas, which has no wage income tax, the same salary keeps $79,180 a year (about $6,598 a month).
Now add a $6,000 pre-tax 401(k) contribution in Colorado. Take-home pay falls to $70,364, only $4,416 less than before, because the contribution lowers both federal and state income tax.
Why your real paycheck may differ
This is a simplified model, so expect some gap against your actual pay stub.
- State and local taxes use real graduated brackets, deductions and sometimes city or county taxes. The rate here is a rough average, not a calculation.
- Withholding on a pay stub depends on your W-4, not your final tax bill, so refunds and balances due are not modelled.
- Credits (such as the child tax credit), other income, itemized deductions, HSA or FSA contributions and state payroll programs are not included.
- Tax law and thresholds change. The figures are our best understanding of the 2026 values and should be checked against IRS publications.
Using the result to make decisions
Take-home pay is the number your budget should be built on. Compare it to your monthly costs, and notice how much a pre-tax 401(k) contribution actually reduces your paycheck: because it lowers taxable income, a $6,000 contribution at a 22% federal bracket costs roughly $4,680 in take-home pay before state tax.
Moving states can change net pay by thousands of dollars, but cost of living changes too. Use our relocation cost comparison and job offer comparison alongside this estimate. For a binding answer, use your employer’s payroll tools or a tax professional.
Frequently asked questions
Which tax year does this use?
Tax year 2026 for federal brackets, standard deductions and the Social Security wage base. Treat all numbers as estimates and confirm against official IRS figures.
Why is state tax only approximate?
States use different brackets, deductions and credits. A single effective rate per state keeps the tool simple and fast, but it will not match your exact state return.
Do 401(k) contributions reduce FICA?
No. Traditional 401(k) contributions reduce income tax but not Social Security or Medicare tax. Pre-tax health premiums through a cafeteria plan generally reduce both, and the calculator treats them that way.
Does it work for self-employed people?
No. Self-employed workers pay both halves of FICA (self-employment tax) and have different deductions, so this employee estimate would be inaccurate.
Why is my paycheck different from the estimate?
Withholding follows your W-4, and employers may deduct benefits, local taxes, garnishments or state programs not modelled here. Compare against your pay stub line by line.