How US Salary Calculations Work
The US tax system uses progressive federal income tax brackets, meaning different portions of your income are taxed at increasing rates. For 2026, the rates range from 10% to 37%, with the brackets adjusted for inflation each year. Your filing status—single or married filing jointly—determines which brackets apply and the size of your standard deduction.
FICA: Social Security and Medicare
Beyond federal income tax, every employee pays FICA taxes: 6.2% for Social Security (up to the annual wage cap) and 1.45% for Medicare (with no cap). If you’re self-employed, you pay both the employee and employer portions. These deductions are fixed percentages of your gross income, making them easy to predict.
State Income Tax Variations
State income tax adds another layer. Some states like Texas and Florida have no state income tax, while others like California use progressive brackets up to 13.3%. A few states apply a flat rate. This calculator includes state-specific logic so you can compare take-home pay across different locations—useful when evaluating remote or relocation job offers.
Pre-Tax Deductions and Filing Status
Contributions to 401(k) plans, HSAs, and other pre-tax benefits reduce your taxable income before federal and state taxes are applied. Choosing married filing jointly roughly doubles the standard deduction and widens the lower tax brackets, often resulting in significantly lower tax liability. Use this tool to model different scenarios and understand how each factor affects your net pay.