✓ Updated for 2025–2026

Understand Every Dollar on Your Paycheck

Estimate your take-home pay, understand your deductions, and find out why your paycheck changed — in plain English, no account needed.

Why Is My Paycheck Lower? →Estimate my take-home pay
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Paycheck and FICA Breakdown

See your gross pay per paycheck and the FICA taxes that always come out: Social Security (6.2%) and Medicare (1.45%). Income tax is withheld on top of this and depends on your W-4 and your state, so it is covered separately below.

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Educational estimate, not tax advice. Shows gross pay and FICA only. Federal and state income tax withholding depend on your Form W-4, filing status, and state, and are not included here; the Social Security portion stops once your wages pass the annual wage base (2025: $176,100). For a full federal withholding estimate, use the IRS Tax Withholding Estimator.

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Paycheck smaller than last time? Find out why.

Most paycheck sites only tell you what your net pay should be. We help you figure out what actually changed. Our Why Is My Paycheck Lower? diagnostic asks what changed recently — a W-4 update, new benefits, overtime, a bonus, a new deduction — then gives you the likely reasons, exactly what to check on your pay stub, and the questions to ask HR.

Run the paycheck diagnostic →

Why your paycheck is smaller than your salary

If your salary is $60,000 a year, your gross paycheck is roughly $2,308 every two weeks. But your net paycheck — what actually hits your bank account — is usually $1,650 to $1,800. The other $500 to $700 goes to taxes and deductions before you ever see it.

Where does it go? Federal income tax takes the largest bite (typically 10–22% depending on your bracket). Social Security and Medicare together take 7.65% (FICA). State income tax varies by state — anywhere from 0% (Florida, Texas) to over 10% (California). Then there are pre-tax deductions: 401(k), health insurance, HSA, FSA.

The good news: most of those deductions are working for you. Pre-tax retirement contributions reduce your tax bill AND build long-term wealth. Health insurance premiums protect you from catastrophic costs. The only line on your stub that doesn't help you is the tax — and even that funds Social Security and Medicare for your future.

Quick answers to common paycheck questions

Your paycheck is reduced by federal income tax, Social Security and Medicare taxes (FICA), state and sometimes local income tax, and any pre-tax deductions like 401(k) contributions and health insurance premiums. Combined, these typically reduce a salary by 25–35% before you see it. Our paycheck calculator shows you exactly how much each one takes out.
FICA (Federal Insurance Contributions Act) is the combined Social Security and Medicare tax. Your share is 7.65% — 6.2% for Social Security (capped at $176,100 in 2026) and 1.45% for Medicare (no cap). Your employer pays a matching amount on your behalf. If you make over $200,000, an additional 0.9% Medicare tax applies.
Your employer uses the information on your W-4 to calculate withholding. The amount depends on your filing status, dependents, additional withholding amount, and whether you have multiple jobs. Withholding follows IRS tables that approximate your annual tax liability.
Pre-tax deductions reduce your taxable income before federal income tax is calculated. The most common: traditional 401(k) contributions, traditional health insurance premiums, HSA contributions, FSA contributions, and dependent care FSAs. These save you money on taxes but reduce your take-home pay dollar-for-dollar.
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Where Did My Paycheck Go?

Wonder why $5,000 in gross pay turns into $3,400 in your bank account? Our visual breakdown tool shows exactly where every dollar lands — taxes, retirement, insurance, and finally your take-home. Each category shown as a percentage of the whole, so you can see at a glance what's eating your paycheck.

Open the Breakdown Tool →
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Self-employed or a freelancer?

Paychecks work differently when you are your own boss. Our sister site 1099 Easy Guide covers quarterly estimated taxes, self-employment tax, and deductions for freelancers and independent contractors.

Visit 1099 Easy Guide →
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