How it works
Method and sources
How every figure on this site is worked out, where each rate comes from, and what the estimate leaves out. Rates were last checked against official sources on October 11, 2026.
The method in one paragraph
The calculator works out your pay for the whole year, works out each tax on that year, rounds to the cent, and divides by your number of paychecks (52, 26, 24 or 12). That is the result payroll withholding is designed to arrive at over a year. Your employer's system uses per-paycheck tables that can differ from this by a few dollars a check, and evens out over the year.
Every page on this site, including the tables on the state, city and salary pages, is generated by the same calculation code that runs in your browser. There are no hand-typed results.
Order of operations
Every result, whatever the page, goes through the same steps in the same order:
- Pay for the year. A salary is used as entered. Hourly pay is the rate times hours times paid weeks, plus overtime at the multiplier you choose. Bonuses and tips are added. Unpaid weeks are taken out.
- Before-tax deductions. A traditional 401(k), 403(b), 457 or TSP contribution comes off the wages used for income tax. Cafeteria-plan deductions (health, dental and vision premiums, HSA, health FSA, commuter benefits) also come off the wages used for Social Security and Medicare. If 401(k) contributions go over the 2026 employee limit, the calculator warns you but uses the amount you entered.
- Federal income tax. Federal wages, plus other income from Step 4(a) of your W-4, less the standard deduction and any Step 4(b) deductions, the tips and overtime deductions, are taxed with the 2026 brackets for your filing status. Credits for children and other dependents come off the tax. Extra withholding from Step 4(c) is added.
- Social Security and Medicare. Worked out on Social Security and Medicare wages, with the wage limit and the Additional Medicare threshold.
- State income tax. Starting from the wages your state taxes (which may or may not exclude a 401(k), HSA or other deductions), less the state's own deduction and exemptions, taxed with its rate or brackets, less any state credits that are modeled.
- State payroll programs. Disability, paid leave, unemployment and long-term care premiums, each on its own wage base and up to its own limit.
- Local tax. On whichever wages that place taxes (gross pay, Medicare wages, federal wages or state taxable income), at the resident or nonresident rate that applies.
- Take-home pay. Gross pay less all of the above and any after-tax deductions, such as a Roth 401(k) or union dues. The year’s total is divided by the number of paychecks.
A worked example
A single person earning $85,000 in Columbus, Ohio, paid every two weeks, puts 5% of pay into a traditional 401(k) and pays $2,400 a year in health premiums.
| Step | For the year |
|---|---|
| Gross pay for the year | $85,000.00 |
| Traditional 401(k) (5%) and health premiums | −$6,650.00 |
| Federal wages (gross less both deductions) | $78,350.00 |
| Federal taxable income (less the $16,100 standard deduction) | $62,250.00 |
| Federal income tax | −$8,407.00 |
| Social Security and Medicare wages (only the health premium comes off) | $82,600.00 |
| Social Security (6.2%) and Medicare (1.45%) | −$6,318.90 |
| Ohio taxable income | $76,200.00 |
| Ohio income tax | −$1,711.13 |
| Columbus city tax (2.5% of Medicare wages) | −$2,065.00 |
| Take-home pay for the year | $59,847.97 |
| Each of 26 paychecks | $2,301.84 |
Note that the 401(k) lowers federal and Ohio tax but not Social Security, Medicare or the Columbus tax, while the health premium lowers all of them. The same inputs in the calculator show this breakdown under "Show the math".
Estimated versus exact: how this differs from your pay stub
The calculator answers the question "what will this pay leave me over a normal year?" Your employer answers a slightly different one: "what should I withhold from this one paycheck?" Employers use the percentage method or wage-bracket tables in IRS Publication 15-T, which annualize each paycheck, apply the year's brackets and divide again. For a steady salary and a 2020-or-later W-4 that gives the same answer as the calculator, within a few cents of rounding per check. The figures can differ when:
- Pay varies. A large commission or overtime check is withheld as if you earned that much every period. The calculator spreads it over the year.
- Bonuses are paid separately. Employers usually withhold a flat 22% from supplemental wages. The calculator shows the tax the bonus really adds; the bonus calculator shows both.
- You pass the Social Security wage limit. Payroll stops Social Security in the paycheck where year-to-date pay reaches $184,500; someone on $250,000 paid every two weeks stops after paycheck 20. The calculator spreads the year's total evenly, so its per-check figure is an average.
- State withholding tables differ from the tax. Some states publish withholding formulas that do not match their tax law exactly (for example tables not yet updated for a rate cut, or a flat percentage the employee chooses). The calculator shows the tax you will owe for the year; the state page notes where withholding is known to differ.
- Your W-4 or benefits are different. Old pre-2020 W-4s with allowances, mid-year benefit changes and employer-specific rounding all move the real figure.
So the calculator is an estimate of what you keep, not a copy of your stub. Over a full year, if your W-4 is accurate, the two should come out close, and any gap is settled on your tax return.
Federal income tax
Federal income tax is estimated for the year: wages after pre-tax deductions, plus other income entered, minus the 2026 standard deduction and any extra deductions, taxed with the Rev. Proc. 2025-32 rate schedules, then reduced by credits for children and other dependents. The year's tax is spread evenly over the paychecks. This is the same arithmetic as the IRS percentage method for a 2020-or-later Form W-4 with no adjustments. If the Step 2 multiple-jobs box is on, half the standard deduction and half-width brackets are used.
- Standard deduction: $16,100 single or married filing separately, $32,200 married filing jointly, $24,150 head of household.
- Children and dependents: $2,200 off the tax for each child under 17 and $500 for each other dependent, shrinking by $50 per $1,000 of income above $200,000 ($400,000 joint). The credit can reduce the tax to zero but is not paid out beyond that here.
- Tips and overtime (2025 through 2028): up to $25,000 of tips and up to $12,500 of overtime premium pay ($25,000 joint) are deducted, shrinking by $100 per $1,000 of income above $150,000 ($300,000 joint). Not applied for married filing separately. For hourly pay the premium is the half in time-and-a-half; it is capped at half the regular rate whatever multiplier is entered.
| Taxable income | Rate |
|---|---|
| Up to $12,400 | 10% |
| $12,400 to $50,400 | 12% |
| $50,400 to $105,700 | 22% |
| $105,700 to $201,775 | 24% |
| $201,775 to $256,225 | 32% |
| $256,225 to $640,600 | 35% |
| Over $640,600 | 37% |
| Taxable income | Rate |
|---|---|
| Up to $24,800 | 10% |
| $24,800 to $100,800 | 12% |
| $100,800 to $211,400 | 22% |
| $211,400 to $403,550 | 24% |
| $403,550 to $512,450 | 32% |
| $512,450 to $768,700 | 35% |
| Over $768,700 | 37% |
Social Security and Medicare
Social Security is 6.2% of pay up to $184,500. Medicare is 1.45% of all pay. Additional Medicare is 0.9% of pay above $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). Employers begin withholding it at $200,000 whatever your status; the calculator uses the threshold for your filing status, which is what you finally owe.
Which deductions lower which taxes
| Deduction | Federal income tax | Social Security and Medicare | State income tax |
|---|---|---|---|
| Traditional 401(k), 403(b), 457, TSP | Lowers | Does not lower | Lowers, except in Pennsylvania |
| Health, dental and vision premiums | Lowers | Lowers | Lowers, except in New Jersey |
| HSA through payroll | Lowers | Lowers | Lowers, except in California and New Jersey |
| Health FSA | Lowers | Lowers | Lowers, except in New Jersey |
| Commuter benefits | Lowers | Lowers | Lowers |
| Roth 401(k), union dues, other after-tax | No effect | No effect | No effect |
State income tax
State income tax is an estimate of the tax for the year on these wages, spread evenly over the paychecks. It is not a withholding-table lookup and not a full resident return. Each state's own standard deduction, exemptions or credits, and rate schedule for the filing status are applied, together with the state-specific rules described in that state's notes.
Each state page sets out that state's deduction, exemptions, brackets and any special rule, such as Oregon's subtraction for federal tax, Connecticut's and New York's recapture of lower-bracket benefits at higher incomes, Wisconsin's sliding standard deduction, or Alabama's and Missouri's deduction for federal income tax. Head of household uses the state's own schedule wherever it has one.
Tips and overtime. Arizona, Idaho, Indiana (2026 only), Iowa, Michigan, Montana, North Dakota and Oregon also take the federal deductions for tips and overtime off state taxable income. Colorado follows the tips deduction but taxes overtime in full. Georgia excludes up to $1,750 of tips and up to $1,750 of overtime premium pay. Alabama lets you deduct up to $1,000 of overtime premium pay. Every other state with an income tax still taxes tips and overtime in full.
“Partly estimated” means the state had not published every 2026 amount when it was checked, so one or more figures carry over from 2025. The state page says which, and the calculator shows a notice with the result.
State payroll programs
Employee contributions for state disability insurance, paid family and medical leave, unemployment insurance and long-term care are separate lines, charged on pay after cafeteria-plan deductions and up to each program's limit. Where the law lets an employer pay the employee's share, the line shows the most that can be taken from pay. The state payroll guide lists all 20.
City and county income tax
A local tax is applied only when the user selects that place. New York City tax is never applied to the rest of New York. A custom percent replaces the selected place and is applied to gross wages. Local rates change during the year; each entry shows the date it was last checked. The calculator covers 143 of them; the local tax guide lists each with its rate. Local taxes are not all charged on the same pay:
| Charged on | Where |
|---|---|
| Gross pay, before any deductions | Philadelphia, Wilmington, Louisville / Jefferson County, Lexington / Fayette County |
| The same taxable income as the state tax | 114 places in Indiana, Maryland |
| Medicare wages: a 401(k) does not reduce it, health premiums do | Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton |
| The same wages as federal income tax: a 401(k) and health premiums both reduce it | 12 places in Michigan, Missouri |
| The same wages the state taxes | Pittsburgh |
New York City and Anne Arundel County use their own brackets; Frederick County uses one rate that depends on income; Yonkers charges a percentage of state tax; Portland's two taxes start at high incomes; Denver's is a flat monthly amount.
Contractors
Self-employment tax is 12.4% Social Security (up to the wage limit) plus 2.9% Medicare on 92.35% of profit after expenses. Half of it is deducted before income tax. The qualified business income deduction is not included.
What the estimate leaves out
- Itemized deductions, and credits other than those for children and dependents (you can enter a credit amount yourself).
- Tax owed to a second state when you live in one and work in another. Reciprocity agreements are recognised; other cases are flagged but not calculated.
- Local taxes that are not in the list, unless you enter the rate.
- State-specific credits such as earned income credits and renter's credits.
- Wage garnishments, and sales and property tax.
- Pay that varies during the year: every paycheck is assumed to be the same.
How it is checked
The calculation code has a test suite that runs before every release. Expected results were worked out by hand from the official schedules, not copied from the program's output. They cover the federal brackets and credits, the special rules of each state that has them, every kind of local tax, and the payroll programs. Other tests check that take-home pay never falls when pay rises, in every state and filing status, and that every line on a result adds up to the total.
A second set of checks runs when the site is built: every rate file must carry a source and a date, and no page may be published with a figure that failed to compute.
Corrections
If you find a rate or a result that looks wrong, email support@localtakehome.com with the page and the inputs, and a link to the official source if you have one. Corrections are listed on the updates page.
How the rates are kept current
Each rate file records the tax year, the official source for each figure and the date it was last checked against that source; the oldest relevant date is shown on each state page. Rates across the site were last checked on October 11, 2026. We re-check when the IRS publishes the next year's inflation adjustments (usually in October or November), when the Social Security Administration announces the new wage base, when a state legislature or revenue department changes a rate, and when a city changes its wage tax (Philadelphia, for example, changes its rate each July). Mid-year changes are applied from their effective date and noted on the updates page.
Where a figure is not yet published, the previous year's figure is used and the state is marked "Partly estimated" in the table above and on its page. Nothing is filled in by guesswork; if a local rate has no published source, the calculator says so and adds nothing.
Sources
Federal
- IRS newsroom, tax year 2026 inflation adjustments (Rev. Proc. 2025-32)
- Rev. Proc. 2025-32 (PDF)
- Tax Foundation, 2026 federal income tax brackets
- IRS Publication 15-T, Federal Income Tax Withholding Methods
- IRS, 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS, One, Big, Beautiful Bill provisions: deductions for tips and overtime
- SSA, Contribution and benefit base
- IRS Publication 15 (Circular E), Employer's Tax Guide
- IRS, Questions and answers for the Additional Medicare Tax
States
- Alabama Department of Revenue, standard deduction chart
- Alabama Department of Revenue, Overtime Premium Deduction (Act 2026-604)
- Alabama Department of Revenue, withholding tax tables and instructions
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026
- Arizona Legislature, SB 1861 fact sheet as enacted (2026, chapter 140)
- Arizona Department of Revenue, Individual Income Update, February 2026
- Arkansas DFA, Withholding Tax Formula (effective 01/01/2026)
- California Franchise Tax Board, Tax News October 2026: 2026 Indexing
- Colorado Department of Revenue, individual income tax
- USDA National Finance Center, Colorado withholding formula, 2026
- Thomson Reuters, Which states are decoupling from federal tax provisions? (updated March 30, 2026)
- Connecticut DRS, TPG-211, 2026 Withholding Calculation Rules (Rev. 12/25)
- Delaware Division of Revenue, PIT-RES instructions
- D.C. Office of Tax and Revenue, individual income tax rates
- Georgia Department of Revenue, 2026 Employer's Tax Guide (revised September 2026)
- Georgia Department of Revenue, Withholding Tax (for Employers)
- Paylocity, Georgia reduces individual income tax rates for 2026 (House Bill 463), June 4, 2026
- Hawaii Department of Taxation, Announcement 2024-03 (Act 46)
- USDA National Finance Center, Hawaii withholding formula, 2026
- USDA National Finance Center, Idaho withholding formula, 2026
- KMVT, Idaho tax filing changes are coming with new conformity bill (House Bill 559), February 13, 2026
- Illinois Comptroller, Payroll Bulletin 1-26: state income tax exemptions for 2026
- USDA National Finance Center, Indiana withholding formula, 2026
- Indiana Department of Revenue, Income Tax Information Bulletin #128
- Iowa Department of Revenue, 2026 withholding formula
- Iowa Department of Revenue, Impact of the One Big Beautiful Bill Act on employee withholding
- Kansas Department of Revenue, withholding tax tables
- Kentucky Department of Revenue, 2026 standard deduction
- USDA National Finance Center, Kentucky withholding formula, 2026
- Louisiana Department of Revenue, Revenue Information Bulletin 26-005
- Maine Revenue Services, 2026 individual income tax rate schedules (revised May 20, 2026)
- Maine Revenue Services, 2026 standard deduction phaseout worksheet
- Maine Revenue Services, 2026 personal exemption phaseout worksheet
- Comptroller of Maryland, 2026 withholding percentage method
- Massachusetts Department of Revenue, 4% surtax
- Massachusetts Department of Revenue, Circular M withholding tables
- USDA National Finance Center, Michigan withholding formula, 2026
- Michigan Department of Treasury, New deductions for qualified overtime compensation and qualified tips (January 6, 2026)
- Minnesota Department of Revenue, income tax brackets, standard deduction and dependent exemption for 2026
- Mississippi Department of Revenue, tax rates, exemptions and deductions
- Missouri Department of Revenue, 2026 withholding tax formula
- Montana Department of Revenue, 2026 withholding updates (House Bill 337)
- Nebraska Department of Revenue, individual income tax
- New Jersey Division of Taxation, tax rate schedules
- New Jersey Division of Taxation, tax tables and rate schedules
- USDA National Finance Center, New Mexico withholding formula, 2026
- New York State Department of Taxation and Finance, IT-2105-I (2026) instructions
- North Carolina Department of Revenue, tax rate schedules
- North Carolina Department of Revenue, NC-30 withholding tables and instructions
- North Dakota Office of State Tax Commissioner, Form ND-1ES 2026
- Ohio Revised Code 5747.02 (rates for taxable years beginning in 2026)
- Ohio Department of Taxation, annual tax rates
- Oklahoma Tax Commission, 2026 withholding tables (Packet OW-2)
- Oregon Department of Revenue, 2026 withholding tax formulas (150-206-436)
- Pennsylvania Department of Revenue, personal income tax rates
- Rhode Island Division of Taxation, Advisory 2025-22: inflation adjustments for tax year 2026
- South Carolina Department of Revenue, Information Letter 26-20 (Act 110 of 2026)
- South Carolina Department of Revenue, 2026 withholding formula (WH-1603F)
- Utah Legislature, S.B. 60 (2026), enrolled
- Utah State Tax Commission, taxpayer tax credit
- USDA National Finance Center, Utah withholding formula, 2026
- USDA National Finance Center, Vermont withholding formula, 2026
- Vermont Department of Taxes, individuals
- Virginia Tax, deductions
- USDA National Finance Center, West Virginia withholding formula, 2026
- EY Tax News, West Virginia lowers personal income tax rates for 2026
- Wisconsin Department of Revenue, 2026 Form 1-ES instructions
State payroll programs and local taxes
- Alaska Department of Labor, 2026 unemployment insurance tax rates
- California EDD, SDI contribution rates
- Colorado FAMLI Division
- Connecticut Paid Leave Authority
- Delaware Department of Labor, Delaware Paid Leave
- Hawaii Department of Labor and Industrial Relations, 2026 maximum weekly wage base
- Maine Department of Labor, Paid Family and Medical Leave employer FAQ
- Massachusetts Department of Family and Medical Leave, contribution rates
- Minnesota Paid Leave, premium rate and contributions
- New Jersey Department of Labor, rate information and contributions
- New York State, disability benefits contribution cap
- New York Paid Family Leave, 2026 rates
- Oregon Employment Department, current tax rates
- Oregon Department of Revenue, Statewide Transit Tax
- Pennsylvania Department of Labor and Industry, employee UC withholding
- Rhode Island Department of Labor and Training, 2026 UI and TDI tax rates
- Washington Employment Security Department, 2026 Paid Leave premium rate
- WA Cares Fund
- New York State, New York City tax rates
- City of Philadelphia, Wage Tax (employers)
- City of Pittsburgh, Earned Income Tax
- Michigan Department of Treasury, City of Detroit income tax withholding guide (Form 5469), 2026
- City of Columbus income tax division
- Central Collection Agency, Cleveland municipal tax
- Comptroller of Maryland, Withholding Tax Facts 2026
- City of Portland Revenue Division, Personal Income Tax (Metro SHS + Multnomah PFA)
- Comptroller of Maryland, 2026 county income tax rates (via USDA National Finance Center bulletin)
- City of Grand Rapids, Income Tax Guide for Individuals
- City of Lansing, Individual Tax Forms / L-1040 instructions
- City of Flint, Form F-1040 Instructions
- City of Pontiac Finance, Income Tax FAQs
- City of Saginaw, Income Tax
- Michigan city income tax rates (Battle Creek 1% / 0.5%)
- City of Kansas City, Missouri, Form RD-109 wage earner return instructions
- City of St. Louis Collector of Revenue, taxable and non-taxable items
- City of Wilmington wage / earned income tax (1.25%)
- Louisville Metro Revenue Commission, Form W-1 / OL instructions
- Lexington-Fayette Urban County Government, Occupational license fee rates
- City of Cincinnati Income Tax Division
- Ohio Department of Taxation municipal income tax rate table (Toledo 2.50%)
- Indiana Department of Revenue, Departmental Notice #1 (effective October 1, 2026)
- City and County of Denver, Tax Guide Topic 61: Occupational Privilege Taxes