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Payroll Calculator
Calculate employee net take-home pay after federal income tax withholding, Social Security, Medicare (FICA), and state taxes. Also shows the total employer payroll tax burden for any salary or hourly wage.
Payroll processing requires calculating multiple taxes simultaneously — federal income tax withholding (based on W-4 allowances), FICA (Social Security 6.2% + Medicare 1.45%), state income tax, and any local taxes. This calculator estimates net pay for budgeting and helps employers understand total payroll cost.
Formula
Net Pay = Gross Pay - Federal Tax - FICA (7.65%) - State Tax - Other Deductions | Employer Cost = Gross Pay × (1 + Employer FICA 7.65%)
2026 Payroll Tax Reference
Payroll taxes in the US include both employee and employer contributions. Understanding all components helps employees verify their paychecks and helps employers accurately budget labor costs.
Tax Component
Rate
Notes
Social Security (employee)
6.2%
On first $184,500 of wages (2026)
Medicare (employee)
1.45%
On all wages
Additional Medicare
0.9%
Employee only, wages over $200,000
Social Security (employer)
6.2%
Same as employee portion
Medicare (employer)
1.45%
Same as employee portion
Federal Unemployment (FUTA)
0.6%
Employer only, first $7,000
State Unemployment (SUTA)
1-10%+
Employer only, varies by state/history
Federal Income Tax
10-37%
Based on income bracket and W-4
2026 Federal Income Tax Brackets (Single)
Income Range
Tax Rate
Notes
$0 - $12,400
10%
Lowest bracket
$12,401 - $50,400
12%
$50,401 - $105,700
22%
$105,701 - $201,775
24%
$201,776 - $256,225
32%
$256,226 - $640,600
35%
Over $640,600
37%
Highest bracket
Frequently Asked Questions
Employee payroll taxes: FICA = Gross Pay × 7.65% (6.2% SS + 1.45% Medicare). Federal Income Tax: calculated using tax brackets and W-4 allowances. State income tax: varies by state (0-13%). Net Pay = Gross Pay - All Tax Withholding - Benefits Deductions. Employer pays matching FICA (7.65%) plus unemployment taxes.
Gross pay: total earnings before any deductions (salary or hours × rate). Net pay (take-home): gross pay minus all taxes and deductions. Typical deductions: federal income tax (10-22% for middle income), FICA (7.65%), state income tax (0-13%), health insurance premium, 401k contribution, and other voluntary deductions. Most employees take home 65-80% of gross pay.
Employer payroll taxes: matching FICA 7.65% (6.2% SS + 1.45% Medicare), FUTA 0.6% (on first $7,000), SUTA varies by state (typically 1-5% on first $7,000-$40,000). Total employer tax burden beyond gross wages: approximately 10-15% of gross wages. This is in addition to benefits, workers comp, and other costs.
The W-4 (Employee Withholding Certificate) tells your employer how much federal income tax to withhold from each paycheck. Since 2020, it uses a dollar-based system instead of allowances. Claiming higher deductions/credits reduces withholding (larger paycheck, potential tax bill at filing). Lower claims increase withholding (smaller paycheck, likely refund). Update your W-4 after major life changes.
Bi-weekly gross pay = Annual salary / 26 pay periods. Monthly salary: $5,000/month = $60,000/year = $60,000/26 = $2,307.69 bi-weekly. Bi-weekly FICA = $2,307.69 × 7.65% = $176.54. Federal income tax withholding depends on W-4 and tax brackets. Net pay after FICA only: $2,307.69 - $176.54 = $2,131.15 (before income tax and other deductions).
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (interest/dividends only), South Dakota, Tennessee (interest/dividends only), Texas, Washington, Wyoming. Washington has no income tax but has a capital gains tax. Moving to a no-income-tax state can significantly increase take-home pay for high earners.