How Paycheck Taxes Work

1. Gross pay — salary or hours × rate.
2. Pre-tax deductions — traditional 401(k)/403(b), HSA, health premiums (Section 125) reduce taxable wages.
3. Federal income tax — withheld using your W-4 and IRS Publication 15-T; 2026 brackets run 10%–37% after a $16,100 standard deduction (single).
4. Social Security — 6.2% up to $184,500 of wages in 2026.
5. Medicare — 1.45%, plus 0.9% above $200,000 (single).
6. State and local tax — from 0% in nine states to over 13% at the top in California; some cities (NYC, Philadelphia, many Ohio and Pennsylvania localities) add their own.
7. Post-tax deductions — Roth 401(k), garnishments, union dues.

See all of it for your salary in the take-home pay calculator. Sources: methodology.