Gross pay is what you earn; net pay is what reaches your bank account. In between sit Social Security, Medicare, federal and state income tax withholding and any benefit deductions. This payroll calculator walks from one to the other for a single paycheck, shows a yearly view, and labels every figure that is an estimate. It works for hourly workers (including overtime), for a known gross amount per paycheck, and for an annual salary.
How to use the payroll calculator
- Choose how you are paid: hourly, per paycheck or annual salary, and pick your pay frequency.
- Hourly: enter your rate, regular hours and any overtime hours for the pay period.
- Enter a federal withholding percentage and a state and local percentage. Use 0% in states without a wage income tax.
- Optionally add pre-tax 401(k), pre-tax health/FSA/HSA and after-tax deductions per paycheck, and your wages earlier this year if you are a high earner.
- Read net pay on the tape, the line-by-line breakdown and the yearly column.
Payroll formulas
Worked example
You earn $25 an hour, are paid every two weeks, worked 80 regular hours and 4 overtime hours, and use 10% federal and 4% state withholding.
| Line | Amount |
|---|---|
| Gross pay: 80 × $25 + 4 × $37.50 | $2,150.00 |
| Social Security: 6.2% × $2,150 | −$133.30 |
| Medicare: 1.45% × $2,150 | −$31.18 |
| Federal withholding: 10% × $2,150 | −$215.00 |
| State withholding: 4% × $2,150 | −$86.00 |
| Net pay | $1,684.52 |
Now add a $150 pre-tax 401(k) contribution and $60 of pre-tax health premiums. FICA applies to $2,090 (Social Security $129.58, Medicare $30.31), income tax applies to $1,940 (federal $194.00, state $77.60), and net pay becomes $1,508.51. Your take-home fell by only $176.01 even though $210 went into benefits — the tax savings cover the rest.
The Social Security wage base
Social Security tax applies only to the first $184,500 of wages in 2026; the Social Security Administration announces the next year’s figure each October. Someone earning $195,000 a year in 26 equal paychecks of $7,500 pays full Social Security on the first 24 checks ($180,000), $279 on the 25th (6.2% of the remaining $4,500) and none on the last one. Enter year-to-date wages to see this for a specific paycheck. If you work two jobs and overpay Social Security in total, you claim the excess back on your tax return.
Pay frequency and your paycheck
| Frequency | Paychecks a year | $65,000 salary per check |
|---|---|---|
| Weekly | 52 | $1,250.00 |
| Every two weeks | 26 | $2,500.00 |
| Twice a month | 24 | $2,708.33 |
| Monthly | 12 | $5,416.67 |
Why this is an estimate
Real withholding depends on the IRS percentage-method tables in Publication 15-T, the choices on your Form W-4, state formulas, local taxes, and benefits with special tax treatment. A flat rate cannot reproduce all of that, so treat the result as a planning number. For a better federal percentage, divide the federal tax on a recent pay stub by that period’s taxable wages. To estimate your actual annual tax bill, use the income tax calculator; to work out the gross figure first, start with the time card calculator or the overtime calculator.
This calculator provides estimates for planning only and is not tax advice. Your employer's payroll system, your W-4 and current IRS and state rules determine actual withholding.
Frequently asked questions
How much is taken out of a paycheck for Social Security and Medicare?
Employees pay 6.2% for Social Security and 1.45% for Medicare, 7.65% in total, on most wages. Social Security stops once your wages for the year reach the wage base ($184,500 in 2026), while Medicare continues on all wages.
What is the Additional Medicare Tax?
Employers must withhold an extra 0.9% Medicare tax on wages above $200,000 paid to you in a calendar year. Enter your year-to-date wages and the calculator applies it to the part of this paycheck above that line.
Why is my real federal withholding different from this estimate?
Actual federal withholding uses the IRS tables in Publication 15-T, your W-4 entries (filing status, dependents, other income and deductions) and your pay frequency. A flat percentage is a useful approximation; your last pay stub's federal tax divided by taxable wages is a good rate to enter.
Does a 401(k) contribution lower Social Security tax?
No. Traditional 401(k) and 403(b) contributions reduce income tax withholding but are still subject to Social Security and Medicare. Section 125 cafeteria-plan deductions, such as most employer health premiums and HSA contributions through payroll, reduce both.
Does my employer pay FICA too?
Yes. Employers pay a matching 6.2% Social Security and 1.45% Medicare on your wages, plus federal and state unemployment taxes. Those amounts are not deducted from your paycheck.