How a US paycheck is actually taxed
Three separate federal deductions come out of American wages, and they follow different rules. Federal income tax is progressive, running 10% / 12% / 22% / 24% / 32% / 35% / 37%. Social Security takes a flat 6.2% — but only up to a wage ceiling. Medicare takes 1.45% on every dollar with no ceiling at all, plus an extra 0.9% once you pass $200,000. State income tax, where it exists, is stacked on top of all three.
The single most common misunderstanding is what the brackets apply to. They are charged on taxable income, not gross pay. For 2026 the standard deduction for a single filer is $16,100, so an $80,000 salary is taxed on $63,900. That also means "I'm in the 22% bracket" never describes your whole salary — only the slice above the previous threshold. On $80,000, the federal bill works out to $8,770, Social Security $4,960 and Medicare $1,160, leaving $65,110 in a state with no income tax. You can reproduce every step in the paycheck calculator.
The bracket that goes down
Almost every tax system gets heavier as you earn more. The US one has a stretch where it gets lighter, and it catches high earners by surprise. Here is the marginal rate on the next dollar of salary for a single filer:
| Salary | Federal | Social Security | Medicare | Marginal rate |
|---|---|---|---|---|
| $80,000 | 22% | 6.2% | 1.45% | 29.65% |
| $150,000 | 24% | 6.2% | 1.45% | 31.65% |
| $190,000 | 24% | — | 1.45% | 25.45% |
| $205,000 | 24% | — | 2.35% | 26.35% |
| $260,000 | 32% | — | 2.35% | 34.35% |
The drop happens at $184,500 — the 2026 Social Security wage base. Every dollar above it escapes the 6.2% tax entirely, so your marginal rate falls by exactly 6.2 percentage points overnight, from 31.65% to 25.45%. It then ticks back up by 0.9 points at $200,000 when the Additional Medicare Tax starts.
The practical upshot: the window between $184,500 and $200,000 carries the lightest payroll-tax burden of any income level in the system — just 1.45% Medicare. A raise that carries you across $184,500 delivers noticeably more net cash per dollar than the raise before it, which is the opposite of what most people brace for. It also means mid-year bonus timing matters: Social Security stops once your year-to-date wages hit the cap, so a December bonus and a January bonus of the same size can net you different amounts.
"No income tax" does not mean low tax
Five states in our data charge no state income tax at all — Texas, Florida, Washington, Nevada and Tennessee — and on an $80,000 salary all five return the identical $65,110, because at that point only federal tax and FICA are left. But the money is collected somewhere. Texas has among the highest effective property-tax rates in the country and combined sales tax reaching 8.25%; Washington levies a capital gains tax; and "no income tax" states fund services through those channels instead. The honest comparison is total tax burden, not the income-tax line alone. Our take-home pay by state page ranks all the states we cover on the same salary so you can see the spread.
The taxes a state calculator usually misses
State income tax is rarely the last word, and the extras are where estimates and payslips diverge:
- California adds State Disability Insurance on wages, and since the wage cap was removed it applies to a high earner's entire salary.
- New York City residents pay a separate city income tax of roughly 3.1%–3.9% on top of New York State tax — a suburban commuter and a Manhattan resident on the same salary do not take home the same amount.
- Pennsylvania looks simple at a flat 3.07% until you add local wage tax; Philadelphia's is among the highest municipal wage taxes in the country.
- Ohio and Maryland layer municipal or county income taxes on top of the state rate.
Each state page we publish lists the quirks that are true in that state rather than repeating a generic explanation. Start with California, New York or Texas.
What these calculators cover — and what they don't
- Single filer, standard deduction. Married filing jointly, head of household and itemised deductions change the result materially.
- Pre-tax contributions are not deducted — 401(k), HSA, FSA and pre-tax premiums all reduce taxable income and are not modelled.
- Credits are not applied — the Earned Income Tax Credit, Child Tax Credit and education credits can change a final refund substantially.
- Local income taxes are noted but not calculated, except where a state page says otherwise.
- Where you work vs where you live can decide which state taxes you, and reciprocity agreements between neighbouring states change the answer.
- Self-employment is different — you owe both halves of FICA. Use the self-employment tax calculator instead.
Federal figures come from the IRS for tax year 2026 and the Social Security wage base from the SSA. If a number looks wrong, please tell us; our methodology explains how each calculator is checked before publication.