Payroll Tax Calculator
Estimate the taxes withheld from one paycheck: Social Security, Medicare, federal income tax under the 2026 IRS percentage method (Form W-4 from 2020 or later) and a flat state rate. Real withholding also depends on pre-tax deductions, W-4 Step 2 and 4 entries and your state's own tables.
Last updated: September 2026
Formula below · 3 sources (IRS, ssa.gov, Wikipedia) · Updated Sep 2026
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About this calculator
The result adds four withholdings for one paycheck. Social Security: 6.2% of gross pay (it stops once your year-to-date wages pass the 2026 wage base of $184,500, which a single-paycheck calculator cannot see). Medicare: 1.45% of gross pay (plus 0.9% Additional Medicare on wages above $200,000 in the year, not included). State income tax: gross pay × the flat state rate you enter (nine states have no wage income tax; California's top rate is 13.3%). Federal income tax: the IRS Publication 15-T (2026) annual percentage method for a 2020-or-later Form W-4 with Step 2 unchecked. The paycheck is annualized (× 52, 26, 24 or 12), reduced by $12,900 for married filing jointly or $8,600 otherwise, run through the 2026 STANDARD withholding schedule for the filing status (married filing separately uses the single schedule), reduced by your W-4 Step 3 credits, and divided back by the number of pay periods. The single schedule is 0% up to $7,500, then 10% to $19,900, 12% to $57,900, 22% to $113,200, 24% to $209,275, 32% to $263,725, 35% to $648,100 and 37% above; the joint and head-of-household schedules are wider. Not modeled: pre-tax 401(k), health, HSA or FSA deductions (subtract them from gross pay for the income-tax part), W-4 Step 4 entries, supplemental-wage rules for bonuses, and local taxes. For self-employment income, SE tax (15.3% on 92.35% of net earnings) and quarterly estimated payments apply instead.
How to use
Example 1 — Single filer, bi-weekly. Gross pay $5,000 per paycheck, single, no Step 3 credits, 5.5% state rate. Social Security = $310.00; Medicare = $72.50; state = $275.00. Federal: $5,000 × 26 = $130,000 − $8,600 = $121,400; 2026 schedule: $1,240 + $4,560 + 22% × $55,300 + 24% × $8,200 = $19,934 a year, ÷ 26 = $766.69. Total withholding = $310 + $72.50 + $275 + $766.69 = $1,424.19, leaving about $3,575.81 before other deductions. ✓ Example 2 — Married filing jointly, two children. Gross pay $4,000 bi-weekly, Step 3 credits $4,400 (2 × $2,200), 3% state rate. FICA = $306.00; state = $120.00. Federal: $104,000 − $12,900 = $91,100; schedule: $2,480 + 12% × $47,000 = $8,120; minus $4,400 = $3,720 a year, ÷ 26 = $143.08. Total = $569.08. ✓
Frequently asked questions
What payroll taxes are mandatory at the federal level?
Several. (1) Social Security tax (OASDI): 6.2% on wages up to the annual wage base ($184,500 for 2026). The employer matches with another 6.2%. Wages above the base aren't subject to Social Security tax, so high earners see take-home rise late in the year. (2) Medicare tax: 1.45% on all wages, matched by the employer, plus a 0.9% Additional Medicare Tax on wages above $200,000 that only the employee pays. (3) Federal income tax withholding: based on the W-4 and the IRS Publication 15-T tables; it is a prepayment reconciled on Form 1040. (4) FUTA: 6% on the first $7,000 of wages (usually 0.6% after the state credit), paid only by the employer. Employee FICA is 7.65% on most wages; with federal income tax withholding (often 5-20% of gross for middle incomes), total federal withholding commonly runs 12-30% of gross pay before state taxes.
How do state and local payroll taxes vary?
Wide variation. State income tax: 9 states have no state income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming); New Hampshire and Tennessee tax investment income but not wages. Among states with income tax, rates range from flat 2.5-5% (Indiana, Illinois, Michigan, Pennsylvania, Utah) to highly progressive systems topping out at 13.3% in California, 10.9% in New York, 11% in Hawaii, 9.85% in Minnesota. Some states (NJ, NY, CA, OR) have additional disability or paid family leave taxes (typically 0.5-1.5% employee contribution). Local taxes apply in some jurisdictions: New York City and Yonkers (NY), several Pennsylvania municipalities (especially Philadelphia at 3.79%), some Ohio cities (Cincinnati, Cleveland, Columbus), Michigan local taxes (Detroit). State unemployment insurance (SUI/SUTA) is employer-paid only in most states but employees contribute in Alaska, New Jersey, Pennsylvania. For employees living in one state and working in another, both states' rules may apply; reciprocity agreements between some states simplify this. Total state and local payroll tax burden ranges from 0% (no-tax states) to 15%+ (high-tax states with city taxes). Tax planning often considers state implications for major decisions like remote work location and relocation.
Why doesn't my actual paycheck withholding match this calculator?
Several reasons. (1) This calculator follows the 2026 Publication 15-T percentage method for a standard W-4, but your employer may use the wage-bracket tables (which round to bands) and your W-4 may include Step 2 or Step 4 entries this calculator does not ask for. (2) Pre-tax deductions lower taxable wages; the calculator doesn't model 401(k) contributions (typically 6-15% of pay), health insurance premiums ($100-500+ per pay period), HSA/FSA contributions, transit benefits. These reduce taxable base, lowering both income tax and (for some categories) FICA withholding. (3) W-4 entries beyond Step 3 matter: the Step 2 multiple-jobs box roughly halves the standard-deduction allowance, and Step 4(a)-(c) add income, deductions or extra withholding. (4) Bonus pay is often withheld at 22% supplemental rate (or 37% if over $1M annual), not regular bracket-based withholding. (5) State withholding uses state-specific tables and rules. (6) Social Security stops above wage base; high earners see year-end take-home increase. (7) Additional Medicare (0.9% above thresholds) isn't fully withheld in real time. For accurate paycheck planning, use the IRS Tax Withholding Estimator at irs.gov; for full tax planning, work with a CPA, especially for complex situations (self-employment income, multiple jobs, equity compensation, capital gains).
What are the most common mistakes employees make with payroll tax withholding?
The biggest is failing to update W-4 after life changes; marriage, divorce, new child, side income, spouse's job changes all affect optimal withholding. Outdated W-4 produces over- or under-withholding, with the latter resulting in penalty risk at tax time. The second is treating large tax refunds as "good"; a refund means you over-withheld and gave the IRS an interest-free loan all year. Adjusting W-4 to break even (or owe a small amount) keeps more money in your pocket throughout the year. The third is under-withholding deliberately to "use" the money during the year, then being unable to pay at tax filing; underpayment penalties apply when you owe more than $1,000 or paid less than 90% of current year liability / 100% of prior year. The fourth is ignoring state-specific rules for multi-state workers (remote workers living in one state, working for company in another); this can produce tax surprises. The fifth is over-relying on calculators and not checking actual paystubs against expected withholding; differences accumulate over the year. The sixth is forgetting that bonuses and supplemental wages have special withholding rules; flat 22% (or 37% for over $1M) withholding on bonuses may be more or less than your normal effective rate. The seventh is neglecting to claim eligible pre-tax benefits (401(k), HSA, transit) that reduce taxable wages and reduce overall tax burden. The eighth is panicking about year-end tax balance without understanding withholding mechanics; W-4 adjustments can right-size the situation for following year.
When should I not use this calculator?
Skip it for precise paycheck planning where accuracy under $50 matters; this is a directional estimate that misses many nuances of real payroll tax calculation. Use the IRS Tax Withholding Estimator or your actual paystub for precision. It is the wrong tool for self-employment income; self-employment tax is 15.3% (both employer and employee FICA portions) plus income tax, paid via quarterly estimated payments rather than withholding. Do not use it for non-cash compensation (stock options, RSUs, fringe benefits); these have special tax treatment requiring specialized calculation. For high earners ($200k+ for singles, $250k+ for married), the additional Medicare tax (0.9%) applies above thresholds and isn't modeled here; also, Social Security cuts off at the wage base, materially changing withholding patterns. For low-income workers eligible for Earned Income Tax Credit or other tax credits, the calculator significantly overstates effective tax burden; actual liability may be much lower or zero. For state-specific planning (residence change, multi-state work), state-specific resources or a CPA are better than this generalized calculator. For tax-equalization or expat situations (US citizen working abroad, foreign worker in US), specialized tax expertise is essential. And for any high-stakes financial decision (large bonus, equity event, retirement timing), consult a CPA — payroll calculators give rough estimates but real tax planning involves more than withholding math.