Your US paycheck contains several layers of deductions that reduce your gross salary to your net take-home pay. Understanding these deductions is essential for budgeting, negotiating salary offers, and planning your financial future. The SalaryCheckup US salary calculator breaks down every component so you can see exactly where your money goes.
Federal income tax uses a progressive bracket system, meaning different portions of your income are taxed at different rates. For 2026, the brackets range from 10% on your first $11,925 of taxable income (for single filers) up to 37% on income above $626,350. After subtracting the standard deduction of $15,000 (single) or $30,000 (married filing jointly), your taxable income is often significantly lower than your gross salary.
FICA taxes — Social Security and Medicare — are payroll taxes that apply to nearly all earned income. Social Security takes 6.2% of your wages up to $176,100 (the 2026 wage base), while Medicare takes 1.45% on all earnings, plus an additional 0.9% on earnings above $200,000 for single filers. Your employer matches these contributions, effectively doubling the total FICA burden.
State income taxes vary dramatically. Nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) levy no state income tax on wages. Others, like California and New York, have progressive state tax brackets that can reach 13.3% and 10.9% respectively. Our calculator includes all 50 states plus DC with their current tax brackets and standard deductions.
Pre-tax deductions like 401(k) contributions, health insurance premiums, and HSA contributions reduce your taxable income, potentially saving you thousands in taxes each year. For 2026, the 401(k) contribution limit is $23,500 ($31,000 if age 50+). Contributing to a traditional 401(k) lowers both your federal and state income tax, though it does not reduce FICA taxes.