Tax year 2026
401(k) calculator
Saving in a 401(k) costs your paycheck less than you put in, because the tax bill falls too. See the numbers for your salary.
Putting in 6% saves $5,100 a year and lowers your paycheck by only $153.00.
| You put in | Saved a year | Income tax saved | Take-home a paycheck | Change |
|---|---|---|---|---|
| 0% | $0 | $0 | $2,639.52 | $0.00 |
| 3% | $2,550 | $561 | $2,563.02 | −$76.50 |
| 5% | $4,250 | $935 | $2,512.03 | −$127.49 |
| 6% | $5,100 | $1,122 | $2,486.53 | −$152.99 |
| 8% | $6,800 | $1,496 | $2,435.52 | −$204.00 |
| 10% | $8,500 | $1,870 | $2,384.53 | −$254.99 |
| 15% | $12,750 | $2,805 | $2,257.03 | −$382.49 |
The 2026 employee limit is $24,500, which is 28.8% of this salary. People aged 50 or over can add catch-up contributions. A traditional 401(k) lowers income tax now; Social Security and Medicare are still charged on the full salary.
Estimate for tax year 2026. Your real paycheck depends on your W-4, your benefits and your employer's payroll system. This is education, not tax, payroll or financial advice.
Why a 401(k) costs less than it saves
Money you put into a traditional 401(k) is not counted for federal income tax this year, or for state income tax in most states. If you are in the 22% bracket, putting in $100 lowers your federal income tax by $22, so your paycheck falls by about $78. Social Security and Medicare are still charged on the full salary.
The employee limit for 2026 is $24,500. People aged 50 or over can add catch-up contributions on top. An employer match is extra money that does not come out of your paycheck at all.
A Roth 401(k) works the other way round: no tax saving now, but withdrawals in retirement are tax free. In the main calculator you can enter both.
Questions
How much should I put in my 401(k)?
At least enough to get the full employer match, if there is one. Beyond that it depends on your budget; this calculator shows what each percentage costs your paycheck.
Does a 401(k) lower Social Security and Medicare?
No. Those are charged on your full pay. Only income tax falls.
Do all states leave 401(k) contributions untaxed?
Almost all. Pennsylvania taxes them when they are made. The calculator applies each state's rule.