How it works
Federal income tax in 2026. The U.S. taxes income progressively. After the standard deduction, income is cut into slices that are taxed at 10%, 12%, 22%, 24%, 32%, 35% and 37%. For 2026 the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household (IRS Rev. Proc. 2025-32, as amended by the 2025 "One Big Beautiful Bill" law). The 10% bracket ends at $12,400 of taxable income for single filers ($24,800 married, $17,700 head of household) and the 37% bracket starts at $640,600 (single), $768,700 (married) or $640,600 (head of household).
Social Security and Medicare (FICA)
Employees pay 6.2% Social Security tax on wages up to the 2026 wage base of $184,500 (maximum $11,439) and 1.45% Medicare tax on all wages. Wages above $200,000 (single or head of household) or $250,000 (married filing jointly) also owe the 0.9% Additional Medicare Tax. A traditional 401(k) contribution lowers your income tax but not FICA, because Social Security and Medicare are still charged on the full salary.
Child tax credit and 401(k)
The child tax credit is $2,200 per child under 17 in 2026. It starts to shrink by $50 for every $1,000 of income above $200,000 (single or head of household) or $400,000 (married). It first reduces your tax; the refundable part (up to $1,700 per child) is not added to net pay here. The pre-tax 401(k) limit for 2026 is $24,500 and is subtracted before federal and most state income tax. New Jersey and Pennsylvania do not allow that deduction for state purposes, and the calculator follows that rule.
State income tax
Nine states levy no tax on wages (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming); choose the first option for them. For the other states the calculator uses the state rates and the standard deduction or personal exemption for your filing status. Flat-tax states: Pennsylvania 3.07%, Illinois 4.95%, Ohio 2.75% above $26,050, Georgia 4.99%, North Carolina 3.99%, Michigan 4.25%, Arizona 2.5%, Indiana 2.95%, Colorado 4.4%. Graduated: California (1% to 12.3% plus 1% above $1 million), New York (3.9% to 10.9%), New Jersey (1.4% to 10.75%), Virginia (2% to 5.75%), Massachusetts (5%, 9% above $1,083,150) and Minnesota (5.35% to 9.85%). California adds 1.3% State Disability Insurance on all wages; New York, New Jersey, Massachusetts, Colorado and Minnesota paid-leave or disability premiums are included in the "state premiums" line.
Worked example
Gross $75,000 − standard deduction $16,100 = taxable income $58,900
- Federal tax = $5,800 + 22% × ($58,900 − $50,400) = $7,670
- Social Security = 6.2% × $75,000 = $4,650; Medicare = 1.45% × $75,000 = $1,087.50
- Single filer in a state with no income tax: net pay = $75,000 − $13,407.50 = $61,592.50 a year, about $5,132.71 a month
- Same salary in California: state income tax $2,774.57 and SDI $975.00, so net pay falls to $57,842.93
What this calculator leaves out
It assumes one W-2 job, no other income, and the standard deduction (no itemizing). Married filing jointly assumes the salary is the household's only income, so a second earner is not modelled. Local taxes (New York City and Yonkers, Philadelphia, Ohio and Indiana city or county taxes, Maryland counties and similar) are out of scope. State dependent exemptions and credits, the earned income tax credit, health-insurance premiums, HSA and FSA contributions, tips and overtime deductions and the new senior deduction are not included. California uses its 2025 brackets because 2026 indexing is not published yet, and Illinois uses the 2025 exemption amount.