Paycheck taxes in five steps
- Find gross pay for the period: hours times the rate, plus overtime, or a yearly salary divided by the number of paydays.
- Subtract pre-tax deductions, such as retirement plan contributions, from the wages each tax is figured on.
- Work out federal income tax from the W-4 choices and the IRS withholding tables.
- Apply Social Security and Medicare at their fixed rates, often shown together as FICA.
- Add state and local income tax where they apply, then subtract every line from gross to reach net pay.
Step 1: gross pay
For hourly work, regular pay is the hourly rate times the regular hours. Overtime hours are paid on their own line, at 1.5 times the base hourly rate unless you set another rate. For a salary, the yearly amount is split evenly across the paydays in a year:
| Pay frequency | Paydays per year |
|---|---|
| Weekly | 52 |
| Every 2 weeks | 26 |
| Twice a month | 24 |
| Monthly | 12 |
Step 2: federal income tax
Federal withholding depends on what the employee chose on Form W-4: the filing status, and any amounts for other jobs, dependents, other income, deductions or extra withholding. Since the 2020 redesign the form asks for dollar amounts instead of withholding allowances.
IRS Publication 15-T (2026), Federal Income Tax Withholding Methods gives employers two ways to turn that into a number: percentage method tables, used by automated payroll systems, and wage bracket tables for doing it by hand. We follow the percentage method: the period's taxable wages are scaled up to a full year, the standard deduction is subtracted ($16,100 for single filers and $32,200 for married couples filing jointly in 2026), the yearly brackets are applied, and that yearly tax is split back across the paydays.
| Rate | Single: yearly taxable wages | Married filing jointly |
|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 |
| 12% | $12,400 to $50,400 | $24,800 to $100,800 |
| 22% | $50,400 to $105,700 | $100,800 to $211,400 |
| 24% | $105,700 to $201,775 | $211,400 to $403,550 |
| 32% | $201,775 to $256,225 | $403,550 to $512,450 |
| 35% | $256,225 to $640,600 | $512,450 to $768,700 |
| 37% | Over $640,600 | Over $768,700 |
When the yearly figure stays under the standard deduction, the formula gives zero federal income tax for that check. That is why small or part-time checks often show none.
Step 3: Social Security and Medicare
Both come from IRS Topic no. 751, Social Security and Medicare withholding rates. Social Security is 6.2% of wages until year-to-date wages reach the 2026 wage base of $184,500 set by the Social Security Administration; after that it stops for the year. Medicare is 1.45% of all wages with no cap, and once year-to-date wages pass $200,000 an additional 0.9% is withheld, as described in IRS Topic no. 560, Additional Medicare tax.
The employer pays a matching share of Social Security and Medicare on top. That share is a cost of the business, so it never appears as a deduction on the worker's stub.
Step 4: state and local tax
Each state publishes its own withholding method: some use a flat rate, others their own brackets, allowances or tables. The engine follows each state's method for all 50 states and DC. States with no wage income tax withhold nothing: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Each state's tax agency is listed on the IRS, State government websites (each state's tax agency) page.
Some places add a local income tax, such as Pennsylvania's local earned income tax, city taxes in Ohio, New York City and Yonkers, and Oregon's statewide transit tax. A few states also take a payroll program line, like disability or paid leave insurance. Where the engine knows these, the stub maker adds them as their own lines.
Worked example from the engine
One check, worked out by the same code the calculators run: $25.00 an hour for 80 hours, paid every 2 weeks, filing single, in Illinois, with 2026 tables.
| Line | How it is found | Amount |
|---|---|---|
| Gross pay | $25.00 times 80 hours | $2,000.00 |
| Yearly wages | Gross times 26 paydays | $52,000.00 |
| Federal taxable (yearly) | Less the $16,100 standard deduction | $35,900.00 |
| Bracket at 10% | $12,400.00 of the yearly figure | $1,240.00 |
| Bracket at 12% | $23,500.00 of the yearly figure | $2,820.00 |
| Federal income tax | $4,060.00 a year divided by 26 | $156.15 |
| Social Security | 6.2% of gross | $124.00 |
| Medicare | 1.45% of gross | $29.00 |
| Illinois income tax | 4.95% of yearly wages less a $2,925 allowance, divided by 26 | $93.43 |
| Net pay | Gross minus every line above | $1,597.42 |
Rounding happens once, at the end of each line, which is why a hand calculation can differ by a cent.
Estimate your yearly tax from one stub
Pick a recent stub without a bonus or unusual overtime. Multiply the federal tax withheld by the number of paydays in a year for your frequency (the table in step 1), and you have a rough yearly figure to compare with what you expect to owe. If it is far off, a new W-4 changes what is withheld from the next check onward.
Check your own stub in four moves
- Regular pay should equal the hours times the rate.
- Social Security should be 6.2% of Social Security wages until the wage base is reached.
- Medicare should be 1.45% of Medicare wages.
- Net pay should equal gross pay minus every tax and deduction line.
What can make your real check different
- Extra withholding, other income or deductions you entered on your W-4.
- Local taxes that depend on your exact address or work place.
- Benefits taken before tax that our quick inputs do not ask about.
- Bonuses and other supplemental pay, which employers may withhold on differently.
Every result is an estimate, not tax advice.
Sources and updates
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS, About Form W-4, Employee's Withholding Certificate
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Topic no. 560, Additional Medicare tax
- Social Security Administration, Contribution and Benefit Base
- IRS, State government websites (each state's tax agency)
Tax tables last loaded into the engine on October 9, 2026. They are refreshed when the IRS or a state publishes new ones.
A number that looks wrong? Email support@paystubs349.com, or try the hourly paycheck calculator and the stub maker, which use this method.
FAQ
How do you calculate paycheck taxes?
Gross pay first, then federal income tax from IRS Publication 15-T, Social Security and Medicare at the IRS rates, and state tax from the state's own method. Net pay is whatever remains once each line is subtracted.
How is federal withholding worked out?
The check's taxable wages are scaled to a full year, the standard deduction for your status is taken off, the yearly brackets apply, and the result is split across the year's paydays.
Why does my real check differ from the estimate?
Your employer may use details we do not ask for, such as extra withholding, other income or deductions on your W-4, local taxes, or benefits taken before tax.
Why is my federal withholding zero?
When yearly taxable wages for the period stay below the standard deduction for the filing status, the formula gives no federal income tax.
Does the employer's share of FICA show on my stub?
No. The employer pays its own matching Social Security and Medicare. Only the employee's share is taken from your pay.
How often are the tables updated?
When the IRS or a state publishes new ones. The figures on this page are read from the engine, so they change the day the engine does.