Two different tax bases, one payslip
A US salary is taxed on two different bases at once, which is the single biggest source of confusion. Federal income tax applies to taxable income: gross pay minus pre-tax contributions minus the standard deduction. Social Security and Medicare apply to gross wages, with no deduction at all. The breakdown in the result panel keeps the two separate so you can see which is which.
federal income tax → (gross − pre-tax − standard deduction) · FICA → gross wagesEffective rate versus marginal rate
The marginal rate is the band your last dollar lands in. The effective rate is your total tax divided by your gross pay. For a single filer on $100,000, the marginal federal rate is 22% but the effective rate — including Social Security and Medicare — is far lower, because the first $16,100 is not taxed at all and the bands below 22% are taxed at 10% and 12%.
This is why “a raise pushed me into a higher bracket” never means a smaller paycheck. Only the portion above the threshold is taxed at the higher rate. Expand the band table in the result panel to see this line by line for your own figures.
2026 single-filer bands
- 10% on taxable income from $0 to $12,400
- 12% on taxable income from $12,400 to $50,400
- 22% on taxable income from $50,400 to $105,700
- 24% on taxable income from $105,700 to $201,775
- 32% on taxable income from $201,775 to $256,225
- 35% on taxable income from $256,225 to $640,600
- 37% on taxable income from $640,600 to above
Where the rest of the deduction goes
Employee Social Security is 6.2% up to $184,500 of wages, and stops there entirely. Medicare is 1.45% on every dollar with no ceiling, plus 0.9% above your filing-status threshold. Your employer pays a matching Social Security and Medicare amount that never appears on your payslip, so the true payroll tax on your employment is roughly double what you see here.
What’s included, and what isn’t
Every figure this calculator produces is an estimate. Here is exactly what it accounts for, and what it does not.
What’s included
- Federal income tax, using the published brackets and standard deduction for your filing status.
- Employee Social Security at 6.2%, capped at the annual wage base.
- Employee Medicare at 1.45%, plus Additional Medicare Tax where it applies.
- Any pre-tax contributions you enter, applied to federal taxable income only.
- State income tax for the nine states that levy none on wages — a verified zero, not an omission.
- Conversion of the annual result into monthly, weekly and per-paycheck equivalents.
What’s not included
- State income tax outside the states listed as levying none on wages.
- County, city and other local income taxes.
- Tax credits, itemised deductions and above-the-line adjustments.
- Employer benefits, insurance premiums and post-tax deductions.
- Form W-4 adjustments such as dependants, other income or extra withholding.
- Bonuses, commission and overtime, which payroll often withholds at a separate supplemental rate.
- Multiple jobs, a working spouse's income, and mid-year pay changes.
What this calculator assumes
- Uses the federal standard deduction for the selected filing status and tax year.
- Assumes W-2 employment at one job for the full calendar year.
- Pre-tax contributions reduce federal taxable income but not Social Security or Medicare wages.
- Social Security stops at the $184,500 wage base for 2026.
- Additional Medicare Tax follows the taxpayer's liability threshold for their filing status.
Sources
Every rate and threshold above is transcribed from a primary source and re-checked on the date shown.
Frequently asked questions
What is the difference between my effective and marginal rate?
Your marginal rate is the rate the next dollar you earn would be taxed at — the top band you reach. Your effective rate is total tax divided by gross pay, which is always lower because the earlier bands are taxed at lower rates. People routinely confuse the two and conclude that a raise will cost them money. It cannot.
Does the effective rate include Social Security and Medicare?
Yes. The effective rate shown here is total estimated tax — federal income tax plus employee FICA plus any state income tax — divided by gross pay. That is the figure that actually describes your position, rather than income tax alone.
Why is the first part of my salary taxed at 10%?
Because the brackets are progressive. For a single filer in 2026, the first $12,400 of taxable income is taxed at 10% no matter how much you earn in total. Only the slice above each threshold moves up a band.
Why is taxable income lower than my salary?
The standard deduction is subtracted first — $16,100 for a single filer in 2026, $32,200 for married filing jointly. Any pre-tax contributions you enter come off as well. Federal income tax is charged on what remains, not on gross pay.
Is FICA charged on taxable income too?
No, and this catches people out. Social Security and Medicare are charged on gross wages, before the standard deduction and before traditional 401(k) contributions. That is why a large pre-tax contribution cuts your income tax noticeably but barely moves your FICA.