Paycheck Calculator | Take-Home Pay & Taxes

Q: What is the difference between marginal and effective tax rate?

Your marginal rate is the rate applied to your last dollar of income (the bracket you're sitting in). Your effective rate is total federal tax divided by gross income. Effective is always lower because earlier dollars are taxed at 10% and 12% before you reach 22%, and the standard deduction shields the first chunk entirely. A $75,000 single filer sits in the 22% marginal bracket but has an effective federal rate around 10.2%.

Q: How much Social Security tax do I pay in 2026?

Social Security tax is 6.2% of wages up to $184,500 in 2026 (the SSA contribution and benefit base). Maximum employee contribution: $11,439. Wages above $184,500 escape Social Security tax entirely for the rest of the year. If you have multiple W-2 jobs and your combined wages exceed the cap, you can claim the excess Social Security withholding back on Form 1040 line 11; the cap applies per person, not per employer.

2026 Take-Home Pay Calculator with OBBBA Deductions

A $75,000 single filer keeps about $61,592 a year ($2,369 bi-weekly) after federal tax and FICA. Add pre-tax 401(k), HSA, and the OBBBA overtime and tip deductions to see the same math against your numbers.

What This Calculator Does

Converts your 2026 salary or hourly wage into a net paycheck after federal income tax, FICA (Social Security and Medicare), pre-tax deductions, and the new OBBBA deductions for qualified tips and FLSA-premium overtime. The calculator applies the 2026 standard deduction, the seven-bracket federal schedule, the $184,500 Social Security wage base, the 0.9% Additional Medicare Tax above $200,000 / $250,000, and the OBBBA caps with the MAGI phase-out built in. Output covers per-period net pay, the line-item tax breakdown, marginal and effective rates, and an OBBBA savings figure when tips or overtime are entered.

Inputs:

Gross pay and frequency (or hourly rate × hours), filing status, pre-tax deductions, qualifying overtime premium and tips for OBBBA.
Outputs:

Net take-home per period and annual, federal income tax, Social Security, Medicare (including the additional 0.9% piece when applicable), marginal and effective rates, and OBBBA savings.

How the Math Works

Four steps. First, taxable income equals gross pay minus pre-tax deductions, OBBBA deductions, and the standard deduction. Second, federal income tax runs that taxable income through the 2026 progressive brackets. Third, FICA is calculated on gross wages (not on taxable income): Social Security at 6.2% up to $184,500 and Medicare at 1.45% with an extra 0.9% on wages above the filing-status threshold. Fourth, net pay equals gross minus federal tax minus FICA minus any post-tax deductions. The effective rate is total federal tax divided by gross; the marginal rate is the bracket your last taxable dollar lands in.

Worked example (no OBBBA):

$75,000 single filer, no pre-tax. Taxable income = $75,000 − $16,100 = $58,900. Federal tax = 10% × $12,400 + 12% × $38,000 + 22% × $8,500 = $1,240 + $4,560 + $1,870 = $7,670. SS = $4,650. Medicare = $1,088. Net ≈ $61,592 / year, $2,369 bi-weekly. Effective rate ≈ 10.2%, marginal 22%.
OBBBA overtime example:

Same filer with $10,000 in qualified FLSA-premium overtime. Taxable income drops to $48,900. The deduction crosses the 22%/12% bracket boundary at $50,400, so savings split: $8,500 at 22% ($1,870) plus $1,500 at 12% ($180) = $2,050, not the $2,200 you'd get if all $10,000 were in the 22% bracket.
OBBBA tip example:

Add $5,000 in qualified tips on top of that. Taxable income drops further to $43,900, all within the 12% bracket. Tip savings: $5,000 × 12% = $600. Combined with the overtime deduction, total federal savings vs the no-OBBBA baseline ≈ $2,650. FICA on the tips and overtime is unchanged.

OBBBA Deductions: What Counts and What Doesn't

Qualified overtime (IRC § 225)

OBBBA created an above-the-line deduction for the premium portion of FLSA-required overtime. Only the half-time piece of time-and-a-half qualifies; the base hourly rate paid for the overtime hour is ordinary wages.

What qualifies:

The $0.50 premium on a $1.00 base when overtime is required by Section 7 of the FLSA. State-only overtime above the FLSA minimum and voluntary employer overtime do not qualify.
Caps:

$12,500 (single / head of household), $25,000 (married filing jointly), $0 (married filing separately). These are statutory limits before any phase-out.
Phase-out:

$100 of cap reduction per $1,000 of MAGI above $150,000 single or $300,000 joint. The single-filer deduction is gone at $275,000 MAGI; the joint-filer deduction is gone at $550,000.
FICA:

Overtime is fully subject to Social Security and Medicare. The deduction reduces income tax only.

Beginning with 2026, employers must report the qualifying overtime portion on Form W-2; for tax year 2025 a "reasonable method" was permitted.

Qualified tips (IRC § 224)

OBBBA created a separate above-the-line deduction for tip income earned in Treasury-listed qualifying occupations. Despite the "no tax on tips" branding, this is a deduction with a cap and a phase-out, not a blanket exclusion.

What qualifies:

Voluntary cash or charged tips received by workers in occupations that customarily and regularly received tips on or before December 31, 2024. Mandatory service charges (auto-gratuity, banquet fees) are not tips. Tips paid to specified-service-trade-or-business employees (health, law, accounting, performing arts, financial services) do not qualify.
Cap:

$25,000 per return regardless of filing status. A married couple where both spouses work in tipped occupations shares the same $25,000 cap, not $50,000. MFS gets $0.
Phase-out:

Same $100/$1,000 phase-out starting at $150,000 single / $300,000 joint. Single deduction is gone at $400,000 MAGI; joint is gone at $550,000.
Reporting:

Beginning 2026, qualifying tips appear in Form W-2 Box 12 with code "TP" and a Treasury Tipped Occupation Code in new Box 14b. Tips that aren't correctly reported don't qualify.

Tips remain fully subject to Social Security and Medicare. The deduction is income-tax only. Self-employed tipped workers cap the deduction at their net business income from the tipped occupation, not gross.

Sunset

Both deductions expire after tax year 2028 unless Congress extends them. Plan around 2025-2028 only.

$75,000 Single Filer: Full Breakdown

2026 Take-Home Pay for $75,000 Salary

Single filer, no pre-tax deductions, no OBBBA inputs:

Gross pay:

$75,000
Standard deduction:

$16,100
Taxable income:

$58,900
Federal income tax:

$7,670 ($1,240 at 10% + $4,560 at 12% + $1,870 at 22%)
Social Security:

$4,650 (6.2% × $75,000)
Medicare:

$1,088 (1.45% × $75,000)
Net take-home:

$61,592 annual / $2,369 bi-weekly / $5,133 monthly
Effective federal rate:

10.2%
Marginal federal rate:

22%

Pre-tax 401(k) at the 2026 maximum employee deferral of $24,500 would reduce taxable income to $34,400 and federal tax to $3,880 ($1,240 at 10% + $2,640 at 12%), saving about $3,790 vs the no-deduction baseline. The cash hitting your bank account drops by $20,710 ($24,500 contributed minus the $3,790 in tax savings), but $24,500 lands in your retirement account.

2026 Federal Tax Brackets

Single filer (2026)

From IRS Rev. Proc. 2025-32, Section 4.01:

10%:

$0 to $12,400
12%:

$12,400 to $50,400
22%:

$50,400 to $105,700
24%:

$105,700 to $201,775
32%:

$201,775 to $256,225
35%:

$256,225 to $640,600
37%:

Above $640,600

Married filing jointly (2026)

Joint thresholds are roughly double the single thresholds in the lower brackets and converge at the top.

10%:

$0 to $24,800
12%:

$24,800 to $100,800
22%:

$100,800 to $211,400
24%:

$211,400 to $403,550
32%:

$403,550 to $512,450
35%:

$512,450 to $768,700
37%:

Above $768,700

Head of household (2026)

Brackets for filers maintaining a household for a qualifying dependent.

10%:

$0 to $17,700
12%:

$17,700 to $67,450
22%:

$67,450 to $105,700
24%:

$105,700 to $201,750
32%:

$201,750 to $256,200
35%:

$256,200 to $640,600
37%:

Above $640,600

Brackets are applied progressively. The standard deduction reduces taxable income before the bracket schedule runs, so the first $16,100 / $32,200 / $24,150 of gross is effectively taxed at 0%.

2026 FICA: Social Security and Medicare

Social Security (6.2%)

Social Security tax stops at the annual wage base.

Rate:

6.2% of wages
2026 wage base:

$184,500 (Social Security Administration, Contribution and Benefit Base)
Maximum employee tax:

$11,439
Formula:

$\text{Social Security Tax} = \min(\text{wages},\ 184{,}500) \times 0.062$

Multi-job earners whose combined wages cross the cap can claim the excess withholding back on Form 1040; the cap is per worker, not per employer.

Medicare (1.45% + 0.9%)

Medicare has a flat base rate plus an additional rate for high earners.

Base:

1.45% on every dollar of wages, no cap
Additional Medicare Tax:

0.9% on wages above $200,000 (single/HoH/MFS) or $250,000 (MFJ)
Formula:

$\text{Medicare} = \text{wages} \times 0.0145 + \max(0,\ \text{wages} - \text{threshold}) \times 0.009$
Worked example:

Single $250,000: $250,000 × 1.45% = $3,625, plus ($250,000 − $200,000) × 0.9% = $450, for total Medicare of $4,075.

Employers only withhold the additional 0.9% once wages with that employer exceed $200,000. If you have multiple jobs that combined cross the threshold, the difference is reconciled on Form 8959 at filing time.

2026 Standard Deductions

Standard deduction by filing status

The standard deduction reduces taxable income before brackets are applied.

Single:

$16,100
Married filing jointly:

$32,200
Head of household:

$24,150
Married filing separately:

$16,100

Itemize only when total itemized deductions (mortgage interest, SALT capped at $40,400 in 2026, charitable, medical above 7.5% AGI) exceed the standard deduction. The OBBBA-raised SALT cap makes itemizing more attractive in 2026 than it was under the prior $10,000 cap.

FAQ

How much is $75,000 after taxes in 2026?

A single filer at $75,000 with no pre-tax deductions and no OBBBA tips or overtime keeps about $61,592 per year, or roughly $2,369 bi-weekly. The breakdown: federal income tax ≈ $7,670 (taxable income of $58,900 after the $16,100 standard deduction, taxed across the 10%, 12%, and 22% brackets), Social Security $4,650 (6.2% of gross), Medicare $1,088 (1.45% of gross). Adding pre-tax 401(k) or HSA contributions raises take-home further by reducing taxable income at your 22% marginal rate.

What does OBBBA actually do for tips and overtime in 2026?

The One Big Beautiful Bill Act (P.L. 119-21, July 2025) created two above-the-line deductions for tax years 2025-2028. Qualified overtime (only the FLSA half-time premium portion) is deductible up to $12,500 single / $25,000 joint. Qualified tips earned in Treasury-listed occupations are deductible up to $25,000 per return. Both phase out by 10 cents per dollar of MAGI above $150,000 single / $300,000 joint, fully gone at $275K / $400K / $550K depending on the deduction and filing status. Both are income-tax only: tips and overtime still pay full FICA. Married filing separately is not eligible.

How do I calculate my take-home pay?

Take-home = Gross - Pre-Tax Deductions - Federal Income Tax - FICA - Post-Tax Deductions. The calculator subtracts the 2026 standard deduction ($16,100 single, $32,200 joint, $24,150 head of household) and any qualifying OBBBA deductions from gross before applying the federal brackets. FICA runs separately on gross wages: Social Security at 6.2% up to the $184,500 wage base, Medicare at 1.45% on every dollar plus an extra 0.9% above $200,000 single / $250,000 joint.

What is the difference between marginal and effective tax rate?

Your marginal rate is the rate applied to your last dollar of income (the bracket you're sitting in). Your effective rate is total federal tax divided by gross income. Effective is always lower because earlier dollars are taxed at 10% and 12% before you reach 22%, and the standard deduction shields the first chunk entirely. A $75,000 single filer sits in the 22% marginal bracket but has an effective federal rate around 10.2%.

How much Social Security tax do I pay in 2026?

Social Security tax is 6.2% of wages up to $184,500 in 2026 (the SSA contribution and benefit base). Maximum employee contribution: $11,439. Wages above $184,500 escape Social Security tax entirely for the rest of the year. If you have multiple W-2 jobs and your combined wages exceed the cap, you can claim the excess Social Security withholding back on Form 1040 line 11; the cap applies per person, not per employer.

What is the additional Medicare tax in 2026?

On top of the base 1.45% Medicare rate, high earners pay an extra 0.9% on wages above $200,000 (single, head of household, married filing separately) or $250,000 (married filing jointly). A $250,000 single filer pays 1.45% on all $250,000 ($3,625) plus 0.9% on the $50,000 above the threshold ($450), totaling $4,075. Unlike Social Security, Medicare has no wage cap; the additional 0.9% piece is reconciled on Form 8959 at filing time, since employer withholding only kicks in once a single employer's wages cross $200,000.

Gross pay

OBBBA (2026)

Pre-tax deductions

Filing status

Post-tax (optional)

Stub (per period)

Deductions

Rates

Pre-tax

Marginal vs effective

COLA context

What changes the paycheck most

Pre-tax deductions save at marginal, not effective

OBBBA tips and overtime have caps, and FICA still applies

The Social Security wage base is a small number for most

Additional Medicare is reconciled at filing