The six-step method, in one paragraph
Start with annual gross pay, subtract pre-tax deductions, estimate federal income tax with the marginal brackets, subtract Social Security and Medicare (FICA), subtract state taxes, and divide by your pay periods. Six steps, all arithmetic — the worked example below shows every one with real 2026 numbers.
Step 1: Annualize your gross pay
If you are salaried, your annual gross is your stated salary. If hourly, multiply rate × weekly hours × 52: $30 × 40 × 52 = $62,400 a year. Add regular bonuses or overtime you expect — the math is only as honest as the gross you start from.
Step 2: Subtract pre-tax deductions
Before any tax is calculated, certain items come out of your paycheck untouched by income tax: 401(k) contributions, traditional HSA contributions, and health insurance premiums. They also skip Social Security and Medicare tax. Subtract them from gross now — everything downstream is computed on the smaller number.
Step 3: Estimate your federal income tax
First subtract the 2026 standard deduction — $16,100 single, $32,200 married filing jointly — unless you itemize. Then apply the marginal brackets below:
The key word is marginal: each rate applies only to the income inside that bracket. On $58,900 of taxable income, a single filer pays 10% of the first $12,400 ($1,240), 12% of the next $38,000 ($4,560), and 22% of only the final $8,500 ($1,870) — $7,670 total. Married-filing-jointly brackets are roughly doubled at the low end.
Step 4: Subtract FICA — Social Security and Medicare
These payroll taxes are flat percentages with no standard deduction and, for Social Security, a wage cap:
On a $75,000 salary, that is $4,650 for Social Security and $1,087.50 for Medicare — the full salary counts, since it sits below the $184,500 wage base. An extra 0.9% Medicare tax applies above $200,000 single ($250,000 joint).
Step 5: Subtract state and local taxes
This step varies most. Nine states levy no income tax; others use flat rates or their own brackets, and some cities add a local tax. For a planning estimate, apply your state's rate as a flat percentage of taxable pay. The example below assumes no state tax so the federal math stays clear.
Step 6: Divide by your number of pay periods
The final step is division: 12 monthly, 24 semimonthly, 26 biweekly, 52 weekly. Do not guess — "twice a month" and "every two weeks" produce very different per-check amounts, and mixing them up is a classic take-home mistake.
Worked example: $75,000 salary, single, paid biweekly, no state tax
Step 2: no pre-tax deductions, so $75,000.
Step 3: taxable income = $75,000 − $16,100 standard deduction = $58,900.
Federal tax = 10% × $12,400 ($1,240) + 12% × $38,000 ($4,560) + 22% × $8,500 ($1,870) = $7,670.
Step 4: Social Security = 6.2% × $75,000 = $4,650. Medicare = 1.45% × $75,000 = $1,087.50.
Step 5: no state tax.
Step 6: total deductions = $7,670 + $4,650 + $1,087.50 = $13,407.50. Annual net = $75,000 − $13,407.50 = $61,592.50. Biweekly net = $61,592.50 ÷ 26 = $2,368.94.
Answer: about $2,368.94 per biweekly paycheck. Roughly 17.9% goes to federal tax and FICA combined — less than most people guess, since the standard deduction and low early brackets do quiet work.
Marginal rate vs. effective rate — don't confuse them
"In the 22% bracket" means 22% is only your marginal rate — the tax on your next dollar. Your effective rate is total tax divided by total income: $7,670 on $75,000, about 10.2% federal. Asked what share of pay goes to taxes, quote the effective rate.
Withholding is an estimate, not your real tax bill
Your employer withholds from each check based on a per-period estimate of your annual income from your W-4 — and that estimate can be off. A raise, bonus, or uneven overtime can push withholding too high (refund) or too low (balance due). Your real tax is computed on your return, which is what the six steps above estimate — more reliable than reading your current pay stub.
Frequently asked questions
How do I calculate take-home pay from my salary?
Subtract pre-tax deductions from gross pay, estimate federal income tax with the marginal brackets after the standard deduction, subtract FICA (6.2% Social Security + 1.45% Medicare), subtract state tax, and divide by your pay periods.
What percentage of my paycheck goes to taxes?
For a single $75,000 earner in 2026, federal tax plus FICA takes about 17.9% of gross pay before any state tax. Your own number depends on income, filing status, pre-tax deductions, and your state.
Why is my paycheck less than my salary?
Your salary is gross pay — the headline number. Federal income tax, FICA, state taxes, and benefit premiums come out before the money reaches you. A $75,000 salary becomes about $61,600 with no state tax, which is why the headline always looks bigger.
Do pre-tax deductions really increase take-home?
Each pre-tax dollar costs less than a dollar of take-home pay because it skips income tax and the 7.65% FICA bite. Your check still shrinks versus not contributing, but every retirement dollar stretches further.
How do I convert salary to net pay per paycheck?
Run the six steps to get annual net pay, then divide by pay frequency: 12 monthly, 24 semimonthly, 26 biweekly, 52 weekly. Don't confuse semimonthly (24) with biweekly (26) — that mix-up can skew a monthly budget by hundreds of dollars.
Is take-home pay the same as net income?
In everyday talk, yes — both mean what's left after taxes and deductions. On a pay stub, "net pay" is one check's exact amount. On tax forms, though, "net income" can mean business profit after expenses — different if you're self-employed.
Try it: run your own numbers through the free take-home pay calculator — salary, filing status, state, and deductions, with every subtraction broken out.