How We Calculate Take-Home Pay
Every number on TakeHomeUSA comes from a transparent, documented formula based on official IRS data. Here is exactly how it works.
1. Data Sources
2. Calculation Steps
The formula below applies to a single filer using the standard deduction — the default assumption on TakeHomeUSA. Every step is deterministic: given the same inputs, the result is always identical.
| Step | Operation | Example: $100K in Texas |
|---|---|---|
| 1 | Start with Gross Annual Salary | $100,000.00 |
| 2 | Subtract Standard Deduction (2026 single filer: $16,100) | − $16,100 = $83,900 |
| 3 | Apply Federal Progressive Brackets to Taxable Income | $13,170 (13.2% eff.) |
| 4 | Social Security: 6.2% on wages up to $184,500 | $6,200 |
| 5 | Medicare: 1.45% on all wages (+ 0.9% over $200K) | $1,450 |
| 6 | State Income Tax (Texas = $0; varies by state) | $0.00 (no state tax) |
| 7 | Optional: Pre-tax deductions (401k, HSA, health insurance) | Reduces taxable income in steps 3 + 4 |
| = | Take-Home Pay = Gross − Federal − SS − Medicare − State | $79,180/year |
3. Federal Tax Brackets (2026)
The US uses a progressive bracket system: only the income within each bracket is taxed at that bracket's rate. A taxpayer in the 22% bracket does not pay 22% on their entire income — only on the portion above the 12% bracket threshold.
| Rate | Single Filer — Taxable Income | Married Filing Jointly |
|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
Source: IRS Rev. Proc. 2025-32. Taxable income = Gross Salary − Standard Deduction. Standard deduction for 2026: Single $16,100 · MFJ $32,200 · HOH $24,200.
4. FICA Taxes (Social Security + Medicare)
FICA taxes are the same in every US state — they are federal payroll taxes applied to earned income regardless of where you live. Employees pay the employee share shown below; employers pay an identical matching amount separately.
6.2%
Social Security
On wages up to $184,500 (the 2026 wage base). No SS on wages above this ceiling.
$100K → $6,200/yr
1.45%
Medicare
On all wages — no cap. Same rate regardless of income level.
$100K → $1,450/yr
0.9%
Additional Medicare
On wages above $200,000 (single). Not matched by employer.
Only applies above $200K
5. State Income Tax Treatment
State tax rules vary significantly. TakeHomeUSA uses the following classification for each of the 50 states:
No Income Tax (9 states)
States: Alaska, Florida, Nevada, New Hampshire*, South Dakota, Tennessee, Texas, Washington, Wyoming
State tax = $0. Only federal + FICA apply.
* New Hampshire taxes investment income but not wages.
Flat Rate States
States: Arizona (2.5%), Colorado (4.4%), Georgia (5.49%), Idaho (5.8%), Illinois (4.95%), Indiana (3.15%), Kentucky (4.0%), Massachusetts (5.0%), Michigan (4.25%), Mississippi (4.7%), North Carolina (4.5%), Pennsylvania (3.07%), Utah (4.85%)
A single percentage applied to all (or most) taxable income above state exemptions. Our model uses each state's official rate and standard deduction/exemption where applicable.
Progressive Bracket States
States: California, New York, New Jersey, Oregon, Minnesota, Hawaii, and others
Multiple brackets similar to federal. We implement each state's full bracket table exactly as published by the state tax authority.
6. Worked Example: $100,000 Salary
Here is the full calculation for a $100,000 annual salary, single filer, standard deduction, in two states — Texas (no state tax) and California (highest state tax):
Texas No state tax
California
7. Key Assumptions & Limitations
What this calculator assumes by default:
- ·Single filing status (adjustable in the calculator)
- ·Standard deduction ($16,100 for single filers in 2026) — not itemized deductions
- ·W-2 wage income only (not self-employment, capital gains, or passive income)
- ·No pre-tax deductions unless entered in optional fields (401k, HSA, health insurance)
- ·No tax credits (child tax credit, EITC, etc.)
- ·No AMT (Alternative Minimum Tax)
- ·No local/city taxes unless explicitly selected (NYC, Philadelphia, etc.)
- ·Employee share of FICA only (employer-matched portion not shown)
These defaults produce a useful baseline estimate for most W-2 employees. Use the calculator's optional fields to adjust for 401k contributions, health insurance premiums, and filing status. For personalized tax planning, consult a licensed CPA.
8. Update Cadence
9. How to Cite TakeHomeUSA
Journalists, bloggers, and researchers are welcome to cite our data. We ask only for a hyperlink back to the relevant page. Suggested citation formats:
Short mention
TakeHomeUSA (takehomeusa.com)
Standard inline citation
According to TakeHomeUSA (takehomeusa.com), a free salary after-tax calculator covering all 50 US states using 2026 IRS tax brackets.
Academic / formal reference
TakeHomeUSA. (2026). Salary After-Tax Calculator [Online Tool]. Retrieved from https://www.takehomeusa.com. Data based on 2026 IRS Rev. Proc. 2025-32 tax brackets.
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