How your 2026 take-home pay is calculated
Your salary is not what lands in your bank account. Four things come out of it before you see a dollar: federal income tax, Social Security, Medicare, and — in most states — state income tax. This calculator applies all of them using 2026 figures.
The order matters, and it is not the order most people assume. Pre-tax deductions like a 401(k) come out first and lower your taxable income. Then the federal standard deduction comes off — $16,100 for a single filer, $32,200 for a married couple filing jointly, and $24,150 for a head of household. Whatever is left is what the federal brackets actually tax.
Federal income tax is not one rate
A common misreading of the tax tables: people see a 37% bracket and assume a high earner pays 37% on everything. They do not. Each bracket taxes only the income inside it. The first dollars are taxed at 10%; only the dollars above each threshold are taxed at the next rate up. That is why your effective rate — total tax divided by total pay — is always lower than your top bracket.
What FICA takes, and where it stops
FICA is two separate taxes that behave very differently.
Social Security takes 6.2% of your wages — but only up to $184,500 in 2026. Every dollar above that is not taxed for Social Security at all. That is why a high earner's Social Security deduction stops growing partway through the year, and why the maximum anyone pays is $11,439.
Medicare takes 1.45% and has no cap — it applies to every dollar you earn. On top of that, an Additional Medicare surtax of 0.9% applies to wages above $200,000 (single or head of household) or $250,000 (married filing jointly). It applies only to the excess, not to your whole salary. Unlike most tax figures, these thresholds are written into the statute and are not adjusted for inflation — they have not moved since 2013.
What your 401(k) does — and what it doesn't
A 401(k) contribution lowers your federal and state income tax, because it comes out of your pay before those taxes are calculated. It does not lower your FICA wages: you still pay Social Security and Medicare on the full amount. This surprises people, and it is why contributing more doesn't reduce your paycheck deductions as much as expected.
There is also a legal ceiling — but only a base one applies here. For 2026 the IRS elective-deferral limit (IRC §402(g)) is $24,500, and this calculator caps your deferral there and tells you when it has. That is the base limit for everyone under 50, though: savers age 50 and older are legally allowed to defer an additional catch-up amount on top of it. This calculator does not ask your age, so it applies the base limit to everyone — if you are 50 or older, you may legally be able to defer more than the number shown above.
And a point worth repeating: your 401(k) contribution is not money you lost. It moved to your retirement account. We subtract it from take-home pay because it genuinely does not arrive in your checking account — but it is still yours.
How New Hampshire taxes your paycheck
New Hampshire has no state income tax on wages. Nothing is withheld for state income tax, which is why take-home pay here is higher than in most states at the same salary.
What common salaries look like after taxes in New Hampshire
Single filer, no 401(k) contribution, 2026 tax year. Every figure below is produced by the same calculator above — they cannot drift apart.
| Salary | Take-home (year) | Every 2 weeks | Goes to taxes |
|---|---|---|---|
| $40,000 | $34,320 | $1,320 | 14.2% |
| $60,000 | $50,390 | $1,938 | 16.0% |
| $80,000 | $65,110 | $2,504 | 18.6% |
| $100,000 | $79,180 | $3,045 | 20.8% |
| $150,000 | $113,791 | $4,377 | 24.1% |
What this calculator does not include
We are explicit about our limits, because a number you can't trust is worse than no number. This calculator does not include:
- Local and city income taxes. New York City, Yonkers, Maryland counties, and Pennsylvania school districts all levy their own — we do not compute them.
- 401(k) catch-up contributions for savers 50 and older. This calculator does not ask your age, so it applies only the base §402(g) limit above to everyone.
- Health insurance premiums, HSA, FSA, or any pre-tax deduction other than a 401(k).
- Tax credits — the Child Tax Credit, the Earned Income Tax Credit, and dependent credits are not modeled.
- Itemized deductions. We apply the standard deduction.
- Your specific Form W-4. Your employer withholds based on what you filed, which can differ from your actual year-end liability. This calculator estimates the liability, not the withholding.
Those are the reasons your real paycheck may differ from this estimate. It is an estimate, not tax advice.