Question 1

How is my paycheck calculated?

Accepted Answer

Gross pay minus pre-tax deductions, minus federal income tax (2026 IRS brackets applied to taxable income), minus state income tax, minus FICA (Social Security 6.2% + Medicare 1.45%, plus Additional Medicare 0.9% above $200,000).

Question 2

Which states have no income tax?

Accepted Answer

Florida, Texas, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire (wages only — NH still taxes interest and dividends in 2024 and earlier; this phases out by 2026).

Question 3

What is the difference between gross and net pay?

Accepted Answer

Gross is what you earn; net (take-home) is what you receive after all taxes and deductions.

Question 4

How do I calculate hourly rate from an annual salary?

Accepted Answer

Annual ÷ 2,080 = hourly (for a 40-hour week × 52 weeks). A $65,000 salary ≈ $31.25/hour.

Question 5

What is FICA and how much is deducted?

Accepted Answer

FICA is Social Security (6.2% on the first $184,500 of 2026 wages) plus Medicare (1.45% on all wages, +0.9% above $200,000).

Question 6

Should I contribute to my 401(k)?

Accepted Answer

401(k) contributions reduce your federal and state taxable income, lowering taxes today. The IRS 2026 contribution limit is $23,500 (under 50).

Question 7

Why does my actual paycheck differ from this estimator?

Accepted Answer

Local taxes, pre-tax benefit elections, voluntary deductions, garnishments, and employer-specific payroll software can change the final number. Use US State Paycheck Calculator as a close estimate, not a payroll-exact figure.

Question 8

Are the calculations updated for 2026?

Accepted Answer

Yes — federal brackets, standard deductions, Social Security wage base, and listed state rates all reflect 2026 values.

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