How paycheck taxes work in 2026

If your salary is $75,000 but your bank deposit is far less, the gap is payroll taxes. Four separate taxes can come out of a US paycheck. Here is each one, in plain English, with 2026 numbers.

1. Federal income tax

The US uses marginal tax brackets: only the income that falls inside a bracket is taxed at that bracket's rate. In 2026 there are seven rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Before any of that applies, you subtract the standard deduction ($16,100 for single filers, $32,200 married filing jointly in 2026).

This is why your effective rate (total tax ÷ total income) is always lower than your marginal rate (the bracket your last dollar lands in).

2. Social Security tax

A flat 6.2% comes out of your wages for Social Security, but only up to an annual wage base — $184,500 in 2026. Earnings above that are not subject to the Social Security portion.

3. Medicare tax

Medicare is 1.45% on all wages, with no cap. High earners pay an extra 0.9% on wages above $200,000 (single) or $250,000 (married). Together, Social Security and Medicare are called FICA.

4. State income tax

This is where your location matters most. Nine states have no income tax on wages. Others use a single flat rate, and the rest use graduated brackets like the federal system. Compare them on our state income tax page.

See it for your salary

Want the exact breakdown for your pay and your state? Use a 2026 paycheck calculator — enter your salary and see federal tax, FICA, and state tax line by line.