How Your US Paycheck Works in 2026 (Federal Tax, FICA, Take-Home)

In the US the gap between your gross salary and the money that lands in your bank account comes down to two big pieces at the federal level: federal income tax and FICA, the payroll tax for Social Security and Medicare. This guide walks through the 2026 federal tax brackets for a single filer, the standard deduction, how FICA is split between Social Security and Medicare, and a full worked example at 60,000 USD gross. It is a federal estimate. Your state and local taxes sit on top of this. The paycheck calculator on this page runs the same federal math for any salary and filing status.

Gross vs net: what comes out of your pay

Your gross salary is the headline figure in your offer letter. Your take-home pay (net pay) is what is left after taxes and deductions. For a simple W-2 employee the federal deductions are federal income tax, Social Security, and Medicare. It assumes you take the standard deduction and have no pre-tax deductions such as 401k contributions or health premiums, no tax credits, and no other income, all of which can move your final figure up or down. Once you have your take-home pay, everyday purchases are then subject to sales tax, which varies by state.

The 2026 federal income tax brackets (Single)

Federal income tax is progressive: only the slice of taxable income inside each bracket is taxed at that bracket's rate, so moving into a higher bracket never lowers your take-home pay. For 2026 the brackets for a single filer are as follows. Married filing jointly and head of household use wider brackets at the same seven rates, which is why your filing status matters.

The standard deduction and taxable income

The brackets above do not apply to your whole salary. First you subtract the standard deduction, which is the income the government does not tax. For 2026 the standard deduction is 16,100 USD for a single filer, 32,200 USD for married filing jointly, and 24,150 USD for head of household. Your taxable income is your gross salary minus the standard deduction, and the brackets apply to that figure. Most employees take the standard deduction rather than itemizing.

FICA: Social Security and Medicare

FICA is charged on your gross wages, not on taxable income, so the standard deduction does not reduce it. Social Security is 6.2% of wages up to the 2026 wage base of 184,500 USD; earnings above that are not subject to Social Security. Medicare is 1.45% on all wages with no cap, plus an Additional Medicare Tax of 0.9% on wages above 200,000 USD. Your employer pays a matching share of Social Security and Medicare, but that does not come out of your paycheck.

Worked example: 60,000 USD gross, single

Take a gross salary of 60,000 USD as a single filer. The standard deduction of 16,100 USD leaves taxable income of 43,900 USD. Federal income tax is 10% on the first 12,400 USD (1,240.00 USD) plus 12% on the next 31,500 USD (3,780.00 USD), which is 5,020.00 USD. Social Security is 6.2% of 60,000 USD, or 3,720.00 USD, and Medicare is 1.45% of 60,000 USD, or 870.00 USD. Total federal tax is 9,610.00 USD, leaving a take-home of 50,390.00 USD per year, or about 4,199.17 USD per month. The effective rate is 16.02%.

Sources

• IRS: tax inflation adjustments for tax year 2026 (brackets and standard deduction)
• Tax Foundation: 2026 tax brackets and federal income tax rates
• The Tax Adviser (AICPA): Social Security wage base and COLA for 2026