Paycheck Calculator: Take-Home Pay & Deductions

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

Your marginal tax rate is the rate applied to your last dollar of income (e.g., 22%). Your effective tax rate is your actual tax burden as a percentage of total income (e.g., 12%). The effective rate is lower because of the standard deduction and progressive tax brackets—you don't pay the top rate on all your income.

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

In 2026, Social Security tax is 6.2% of your wages, up to the wage base of $184,500. This means the maximum Social Security tax you'll pay is $11,439 ($184,500 × 6.2%). Income above $184,500 is not subject to Social Security tax.

Q: What is the additional Medicare tax in 2026?

The additional Medicare tax is 0.9% on wages above $200,000 for single filers (or $250,000 for joint filers). This is in addition to the base Medicare rate of 1.45%. So if you earn $250,000 as a single filer, you pay 1.45% on all $250,000 ($3,625) plus 0.9% on the $50,000 above the threshold ($450), for a total of $4,075.

2026 Take-Home Pay: Strategic Paycheck Optimization

Discover strategic frameworks for maximizing your net income through tax optimization, deduction strategies, and understanding the relationship between gross and take-home pay.

Strategic Paycheck Insights

The OBBBA Opportunity

•Service workers and overtime earners can leverage OBBBA provisions to reduce taxable income.

•Strategically track overtime and tips to maximize these tax-advantaged provisions.

The Effective Rate Advantage

•Your effective tax rate is always lower than your marginal rate due to progressive brackets and deductions.

•Understanding this gap helps you make better financial decisions and avoid overestimating tax burden.

The FICA Wage Base Milestone

•Hitting the $184,500 Social Security wage base creates an effective "raise" mid-year.

•Plan your financial strategy around this milestone, as your take-home pay increases once Social Security tax stops.

The Pre-Tax Wealth Building Strategy

•Pre-tax contributions create a dual benefit: immediate tax savings and long-term wealth accumulation.

•Balance maximizing take-home pay with building retirement wealth through strategic 401(k) and HSA contributions.

Paycheck Calculator 2026: Take-Home Pay & OBBBA Deductions

Calculate your 2026 take-home pay with OBBBA overtime and tip deductions. Includes federal tax brackets, FICA limits, and standard deductions. See your paycheck breakdown.

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

2026 Take-Home Pay for $75,000 Salary

Gross Pay:

$75,000
Standard Deduction:

$16,100 (2026 single filer)
Taxable Income:

$58,900 (assuming no pre-tax deductions)
Federal Tax:

Approximately $8,700 (using 2026 brackets)
Social Security:

$4,650 (6.2% of $75,000)
Medicare:

$1,088 (1.45% of $75,000)
Net Take-Home:

Approximately $60,562 annually, or $2,330 bi-weekly

For a single filer earning $75,000 in 2026, here's the breakdown:

These estimates assume no pre-tax deductions or OBBBA provisions. Actual take-home may vary based on 401(k) contributions, health insurance, overtime, and tip income.

Understanding 2026 Federal Tax Brackets

2026 Tax Brackets for Single Filers

10%:

$0 - $12,600
12%:

$12,600 - $50,400
22%:

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

$105,700 - $215,550
32%:

$215,550 - $323,925
35%:

$323,925 - $504,200
37%:

$504,200+

The 2026 federal income tax brackets are:

These brackets are applied progressively, meaning you pay different rates on different portions of your income. The standard deduction ($16,100 for single filers) reduces your taxable income before brackets are applied.

OBBBA Deductions: Overtime and Tips

2026 OBBBA Provisions

Overtime Deduction:

Qualified overtime earnings up to $12,500 per year are deductible from federal taxable income. This reduces your tax liability dollar-for-dollar at your marginal rate.
Tip Income Exclusion:

Qualified tip income is fully excluded from federal taxable income (no limit). Unlike a deduction, this exclusion means tips are never taxed at the federal level.
Example:

If you earn $10,000 in overtime and $5,000 in tips, you save approximately $2,200 in federal taxes (assuming a 22% marginal rate on the overtime deduction).
Impact:

These provisions are particularly beneficial for service workers, restaurant employees, and those who work significant overtime hours.

The OBBBA (Overtime and Tips Tax Provisions) offers two key tax benefits:

OBBBA provisions apply to federal taxes only. State tax treatment may vary by location.

2026 FICA Taxes: Social Security and Medicare

Social Security Tax (6.2%)

Rate:

6.2% of wages
Wage Base:

$184,500 in 2026 (income above this is not subject to Social Security tax)
Maximum Tax:

$11,439 ($184,500 × 6.2%)
Formula:

Social Security Tax = min(Gross Pay, $184,500) × 0.062

Social Security tax is calculated as:

The Social Security wage base is adjusted annually for inflation. Once you earn more than $184,500, you stop paying Social Security tax for the remainder of the year.

Medicare Tax (1.45% + 0.9%)

Base Rate:

1.45% on all wages (no limit)
Additional Rate:

0.9% on wages above $200,000 (single) or $250,000 (joint)
Formula:

Medicare Tax = (Gross Pay × 0.0145) + (max(0, Gross Pay - Threshold) × 0.009)
Example:

Single filer earning $250,000: ($250,000 × 1.45%) + ($50,000 × 0.9%) = $3,625 + $450 = $4,075

Medicare tax has two components:

Unlike Social Security, there is no wage base cap for Medicare tax. High earners pay the additional 0.9% on income above the threshold.

2026 Standard Deductions

Standard Deduction Amounts

Single:

$16,100
Married Filing Jointly:

$32,200
Head of Household:

$24,100

The 2026 standard deductions reduce your taxable income:

The standard deduction is subtracted from your gross income (after pre-tax deductions) to determine your taxable income. You can choose between the standard deduction or itemizing deductions, whichever is higher.

FAQ

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

For a single filer earning $75,000 in 2026, your estimated take-home pay is approximately $58,000-$60,000 annually, depending on pre-tax deductions. This includes federal taxes (~$9,000), Social Security ($4,650), and Medicare ($1,088). Your bi-weekly paycheck would be approximately $2,230-$2,310.

? What are the OBBBA deductions for 2026?

The OBBBA (Overtime and Tips Tax Provisions) allows two key deductions: Qualified Overtime up to $12,500 per year is deductible from federal taxable income, and Qualified Tip Income is fully excluded from federal tax (no limit). These provisions can significantly reduce your tax liability if you work overtime or receive tips.

? How do I calculate my take-home pay?

Take-home pay = Gross Pay - Pre-Tax Deductions - Federal Tax - FICA Taxes - Post-Tax Deductions. The calculator applies 2026 tax brackets, standard deductions ($16,100 single, $32,200 joint), Social Security (6.2% up to $184,500), and Medicare (1.45% + 0.9% above $200,000) to give you an accurate estimate.

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

Your marginal tax rate is the rate applied to your last dollar of income (e.g., 22%). Your effective tax rate is your actual tax burden as a percentage of total income (e.g., 12%). The effective rate is lower because of the standard deduction and progressive tax brackets—you don't pay the top rate on all your income.

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

In 2026, Social Security tax is 6.2% of your wages, up to the wage base of $184,500. This means the maximum Social Security tax you'll pay is $11,439 ($184,500 × 6.2%). Income above $184,500 is not subject to Social Security tax.

? What is the additional Medicare tax in 2026?

The additional Medicare tax is 0.9% on wages above $200,000 for single filers (or $250,000 for joint filers). This is in addition to the base Medicare rate of 1.45%. So if you earn $250,000 as a single filer, you pay 1.45% on all $250,000 ($3,625) plus 0.9% on the $50,000 above the threshold ($450), for a total of $4,075.

Take-Home Paycheck Calculator

Gross Pay Information

OBBBA Deductions (2026)

Pre-Tax Deductions

Filing Status

Post-Tax Deductions (Optional)

Paycheck Stub

Deductions

Tax Rates

Pre-Tax Advantage

Marginal vs. Effective Rate

2026 COLA Context