Where your paycheck goes
A US paycheck is reduced by three main layers. Federal income tax uses marginal brackets — for 2026, a single filer pays 10% on the first $12,400 of taxable income, 12% up to $50,400, 22% up to $105,700, and so on, after subtracting the $16,100 standard deduction. Crucially, moving into a higher bracket only taxes the income within that bracket, never your whole salary. FICA taxes fund Social Security (6.2% on the first $184,500 of wages in 2026) and Medicare (1.45% on all wages, plus 0.9% above $200,000). State income tax varies enormously: Texas and Florida charge nothing, while California’s graduated rates reach 9.3%+ for typical earners.
Why this is an estimate
Real paychecks reflect far more than these three layers: 401(k) and HSA contributions reduce taxable income, health insurance premiums come out pre-tax, and many cities levy their own income taxes. State systems are graduated like the federal one, so the flat approximations used here (California 7%, New York 6.5%) are simplifications for quick comparison — your actual state bill depends on your exact income and filing situation. Treat this calculator as a directional guide, and check your pay stub or a CPA for precision.
Marginal vs effective rate
Your marginal rate is the tax on your next dollar earned — the number that matters when deciding whether overtime or a raise is “worth it” (it almost always is; brackets don’t work the way most people fear). Your effective rate is total tax divided by gross income, and it is always lower — often dramatically so. On an $85,000 salary, for example, the federal effective rate is under 12% even though the marginal rate is 22%.