💼 PayCity Calculator
Free Paycheck & Salary Tax Calculator for 2026
📊 What Is the PayCity Calculator?
The PayCity Calculator is a comprehensive paycheck estimation tool designed for W-2 employees, whether you're paid a salary or hourly wage. It calculates your net take-home pay after accounting for federal income tax, state income tax, Social Security (6.2%), Medicare (1.45%), and common pre-tax deductions like 401(k) contributions, health insurance premiums, and HSA/FSA contributions.
Whether you're negotiating a new job offer, planning your budget, or simply want to understand where your money goes each paycheck, this calculator provides accurate estimates based on 2026 IRS tax brackets and current FICA rates.
📝 How to Use This Calculator
📐 Paycheck Calculation Formulas
1️⃣ Net Pay Formula
Your net pay is what remains after all taxes and deductions are subtracted from your gross earnings.
2️⃣ FICA Tax Calculation
FICA includes Social Security (6.2% up to $168,600 wage base in 2026) and Medicare (1.45% with no cap). Additional Medicare Tax of 0.9% applies to income over $200,000 (single) or $250,000 (married).
3️⃣ Taxable Income Formula
Federal income tax is calculated on your taxable income after subtracting pre-tax deductions and the standard deduction ($14,600 single, $29,200 married, $21,900 head of household in 2026).
📊 2026 Federal Tax Brackets
| Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $11,600 | $0 – $23,200 | $0 – $16,550 |
| 12% | $11,601 – $47,150 | $23,201 – $94,300 | $16,551 – $63,100 |
| 22% | $47,151 – $100,525 | $94,301 – $201,050 | $63,101 – $100,500 |
| 24% | $100,526 – $191,950 | $201,051 – $383,900 | $100,501 – $191,950 |
| 32% | $191,951 – $243,725 | $383,901 – $487,450 | $191,951 – $243,700 |
| 35% | $243,726 – $609,350 | $487,451 – $731,200 | $243,701 – $609,350 |
| 37% | Over $609,350 | Over $731,200 | Over $609,350 |
📝 Worked Examples
Example 1: Single Employee – $65,000 Salary
Scenario: Sarah is single, earns $65,000/year, paid bi-weekly (26 paychecks). She contributes $200/paycheck to her 401(k) and $100/paycheck for health insurance. She lives in Virginia (5.25% state tax).
Annual take-home: approximately $43,558 | Tax rate: ~23% effective
Example 2: Married Couple – $120,000 Combined Salary
Scenario: Michael and Lisa file jointly. Michael earns $120,000/year, paid monthly (12 paychecks). He contributes $500/month to 401(k), $250 for family health insurance, and $100 to HSA. They live in Texas (no state tax).
Annual take-home: approximately $91,590 | Tax rate: ~15% effective (no state tax advantage)
Example 3: Hourly Worker – $25/hour
Scenario: Jake works 40 hours/week at $25/hour ($52,000 annually). He's single, paid bi-weekly, with $50/paycheck for health insurance. He lives in California (9.3% state tax).
Annual take-home: approximately $38,317 | Higher state taxes significantly impact take-home pay
💡 Tips to Maximize Your Paycheck
- Contribute to 401(k): Pre-tax contributions lower your taxable income while building retirement savings. If your employer matches, contribute at least enough to get the full match—that's free money!
- Use HSA accounts: Health Savings Accounts are triple tax-advantaged—contributions are pre-tax, growth is tax-free, and withdrawals for medical expenses are tax-free.
- Review your W-4 annually: Life changes (marriage, children, buying a home) affect your optimal withholding. Update your W-4 to avoid over or under-withholding.
- Consider state tax impact: If you have job flexibility, states with no income tax (TX, FL, WA, NV) can significantly increase your take-home pay.
- Use FSAs wisely: Flexible Spending Accounts for dependent care ($5,000 limit) and healthcare ($3,050 limit in 2026) reduce taxable income.
- Timing matters: If you're close to a tax bracket threshold, additional 401(k) contributions near year-end can keep you in a lower bracket.
🔗 Related Calculators
❓ Frequently Asked Questions
📚 Official Resources
- IRS Tax Withholding Estimator — Calculate your optimal W-4 withholding
- IRS Publication 15 (Circular E) — Employer's Tax Guide with 2026 withholding tables
- Social Security Wage Base — Annual contribution and benefit base limits
- IRS Form W-4 — Employee's Withholding Certificate
- IRS 401(k) Contribution Limits — Annual retirement contribution limits
Disclaimer: This PayCity Calculator provides estimates based on 2026 federal tax brackets and FICA rates. Actual paycheck amounts may vary due to local taxes, employer-specific deductions, and individual circumstances. For official tax guidance, consult a qualified tax professional or your employer's payroll department. Last updated: January 2026.