The three layers on every stub
Gross pay is not yours. Employers withhold federal income tax using IRS Publication 15-T, Social Security and Medicare (FICA), and — in 41 states plus DC — a state income tax. A handful of cities add a local wage tax on top.
Kept models those three layers for tax year 2026 using IRS Revenue Procedure 2025-32 for federal brackets and Tax Foundation 2026 state tables. It is an estimate, not a substitute for a W-4 or a CPA.
Federal income tax is marginal, not flat
The 2026 ordinary rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Only the dollars inside a bracket are taxed at that rate. A single filer with $80,000 of wages takes the $16,100 standard deduction, leaving $63,900 taxable — which still spans the 10%, 12%, and 22% bands. The last dollar is taxed at 22%; the whole paycheck is not.
FICA is the quiet 7.65%
Employees pay 6.2% Social Security on wages up to $184,500 in 2026 and 1.45% Medicare on every dollar. An extra 0.9% Additional Medicare Tax starts at $200,000 for single filers ($250,000 married filing jointly). Employers match Social Security and the 1.45% Medicare piece; they do not match the 0.9%.
State tax is the swing factor
Nine states levy no wage income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Everyone else is either a flat-rate state (Arizona 2.5%, North Carolina 3.99%, Illinois 4.95%) or a graduated state (California’s top rate is 13.3%). Local taxes in New York City, Philadelphia, and many Ohio and Indiana cities can matter as much as the state itself.