Paycheck Take-Home Calculator

How this calculator works

Step 1 — FICA-taxable wages

Social Security and Medicare are calculated on FICA-taxable wages, not gross pay. Per IRS Publication 15 (Circular E) and Publication 15-A, Section 125 cafeteria plan deductions — health, dental, vision, FSA, and HSA premiums — reduce FICA-taxable wages under IRC § 3121(a). This means your Social Security and Medicare tax is lower when you carry employer-sponsored benefits.

401(k) pre-tax contributions are different. They reduce your federal taxable income but do not reduce FICA-taxable wages. The calculator tracks this distinction precisely.

Step 2 — Social Security (6.2%)

Social Security tax is 6.2% of FICA-taxable wages, applied only up to the annual wage base. For 2026, that ceiling is $184,500 (source: SSA 2026 COLA Fact Sheet). Wages above that ceiling are not subject to Social Security for the rest of the year. If you enter your YTD SS wages, the calculator applies the cap correctly mid-year.

Step 3 — Medicare (1.45% + 0.9%)

Medicare is 1.45% on all FICA-taxable wages — there is no annual ceiling. An additional 0.9% applies to wages above $200,000 (the employer withholding threshold per IRS Topic 751). Employers withhold the extra 0.9% once cumulative wages exceed $200,000 in a calendar year, regardless of filing status. Married filers with a combined income above $250,000 may owe additional amounts (or receive a refund) when they file their joint return.

Step 4 — Net take-home

Net = Gross Pay − Section 125 deductions − 401(k) pre-tax − Total FICA − post-tax deductions. The calculator does not add federal or state income tax withholding because those amounts depend on your W-4 elections and state of residence — variables we don't capture here.

Last reviewed: June 2026