A US pay stub packs a lot into a few lines: federal income tax, two separate FICA taxes, state and sometimes city tax, benefit premiums and retirement contributions, each with its own rules and year-to-date total. This guide takes one paycheck apart line by line, explains where each number comes from, and shows why the tax withheld during the year rarely equals the tax you finally owe.
The anatomy of a pay stub
Most stubs follow the same order, whatever payroll provider your employer uses:
- Gross pay for the period: salary, hourly wages, overtime, bonuses.
- Pre-tax deductions: traditional 401(k), health, dental and vision premiums, HSA and FSA contributions.
- Taxes: federal income tax, Social Security, Medicare, state income tax, and any state programs or local taxes.
- After-tax deductions: Roth 401(k), union dues, wage garnishments, charitable payroll giving.
- Net pay: what is deposited in your account.
Alongside each line you will usually see a year-to-date (YTD) column, which is the easiest place to check whether withholding is on track.
A biweekly paycheck, line by line
Take a single employee in Texas, which has no state income tax, earning $60,000 a year and paid biweekly. The engine’s 2026 figures, divided over 26 paydays:
| Line | Per biweekly check | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | −$193.08 | −$5,020.00 |
| Social Security (OASDI) | −$143.08 | −$3,720.00 |
| Medicare (incl. Additional Medicare Tax) | −$33.46 | −$870.00 |
| Net pay | $1,938.08 | $50,390.00 |
These are annual-liability figures spread evenly; a real stub shows withholding, which follows the W-4 and can differ by a few dollars a check. You can reproduce the table, and change any input, in the US paycheck calculator.
Federal income tax
Federal income tax is charged on taxable income: wages minus pre-tax deductions minus the standard deduction, which is $16,100 for a single filer, $32,200 for a married couple filing jointly and $24,150 for a head of household in 2026. Seven rates then apply to successive slices of taxable income, from 10% to 37%. Our marginal vs average tax rate guide works through the bracket arithmetic.
Credits reduce the tax itself. The Child Tax Credit is worth up to $2,200 per qualifying child under 17 in 2026, phasing out at higher incomes. For a married couple on $100,000 in Florida, federal income tax is $7,640.00 with no children and $3,240.00 with two, a difference of $4,400.00 in take-home pay over the year.
Social Security and Medicare (FICA)
FICA is two flat taxes that fund retirement, disability and health benefits:
- Social Security (OASDI): 6.2% of wages up to the 2026 wage base of $184,500. Above that, nothing more is deducted for the rest of the calendar year.
- Medicare: 1.45% of all wages, with no cap.
- Additional Medicare Tax: a further 0.9% on wages above $200,000. Employers start withholding it at that level whatever your filing status; your actual liability threshold depends on status and is settled on Form 8959.
On $250,000 in Texas, Social Security stops at $11,439.00 and Medicare, including the additional tax, comes to $4,075.00. Your employer pays matching Social Security and regular Medicare on top of your salary; those amounts never appear as deductions on your stub.
State and local taxes
State tax is where paychecks differ most. In our 2026 rules files, 9 states have no income tax on wages; others use a flat rate or graduated brackets, and a handful add employee-paid payroll programs such as disability insurance or paid family leave. Some cities and counties levy their own income tax. The same $60,000 salary, single filer, 2026:
| State | State income tax | State payroll programs | Take-home pay |
|---|---|---|---|
| Texas | $0.00 | $0.00 | $50,390.00 |
| California | $1,639.53 | $780.00 | $47,970.47 |
| New York | $2,643.00 | $290.40 | $47,456.60 |
| Pennsylvania | $1,842.00 | $42.00 | $48,506.00 |
| Illinois | $2,825.21 | $0.00 | $47,564.79 |
| Ohio | $1,206.50 | $0.00 | $49,183.50 |
| Georgia | $2,245.50 | $0.00 | $48,144.50 |
| North Carolina | $1,885.28 | $0.00 | $48,504.72 |
| Michigan | $2,299.25 | $0.00 | $48,090.75 |
The table excludes local taxes, which can be significant: New York City’s resident income tax, Pennsylvania’s local earned income taxes and the city income taxes in Ohio and Michigan are explained on the relevant state pages. State rules also differ on what counts as taxable pay; Pennsylvania, for example, taxes 401(k) deferrals.
Pre-tax benefits and what they change
Not all pre-tax deductions are equal. Two examples on the same $60,000 Texas salary:
6% traditional 401(k)
The deferral of $3,600.00 cuts federal income tax from $5,020.00 to $4,588.00. Social Security ($3,720.00) and Medicare ($870.00) are unchanged, because retirement deferrals are still FICA wages.
$2,400 a year of pre-tax health premiums (Section 125)
Cafeteria-plan premiums reduce both taxes: federal income tax falls to $4,732.00, Social Security to $3,571.20 and Medicare to $835.20. Net pay falls by only $1,928.40 for $2,400 of cover.
Roth 401(k) contributions are the opposite: they come out after tax, so they reduce take-home pay dollar for dollar now in exchange for tax-free withdrawals later.
Withholding vs what you actually owe
Your employer does not know your full tax picture. It withholds federal tax using the IRS percentage method or tables, driven by your Form W-4: filing status, whether you have more than one job, dependents and any extra withholding you request. The tax you owe is calculated later, on your return, from everything you earned in the year.
The two drift apart when you have two jobs, a working spouse, large bonuses (often withheld at a flat supplemental rate), income outside your paycheck, or a W-4 that no longer matches your life. The IRS Tax Withholding Estimator helps you set the W-4 so withholding lands close to the liability. Most states have their own withholding certificate as well, such as California’s DE 4 or New York’s IT-2104.
MoneyOtter’s calculators deliberately show the annual liability, because that is the number that decides your refund or balance due. Compare it with the year-to-date withholding on your stub, scaled to a full year.
A five-minute check of your pay stub
- Confirm gross pay: salary ÷ pay periods, or hours × rate plus overtime. The salary to hourly calculator converts between periods.
- Check Social Security is 6.2% and Medicare 1.45% of FICA wages (gross minus Section 125 items).
- Check state lines against your state page, including any disability or family-leave program.
- Scale year-to-date federal withholding to twelve months and compare it with the federal tax in the US paycheck calculator.
- If the gap is large, update your W-4 or state certificate rather than waiting for April.
To see how the same salary is treated in other countries, read gross vs net pay; to test your own brackets, try the income tax bracket calculator, and for raises the percentage calculator gives the change in percent.
Frequently asked questions
What does FICA mean on my paycheck?
FICA stands for the Federal Insurance Contributions Act. It covers two deductions: Social Security at 6.2% of wages up to the annual wage base of $184,500 in 2026, and Medicare at 1.45% of all wages. Your employer pays the same amounts again on top.
Why is federal income tax on my paycheck different from what I owe?
Withholding is an estimate based on your Form W-4 and your pay for the period. The tax you owe is worked out on your return from your income for the whole year. If too much was withheld you get a refund; too little and you pay the balance.
Do 401(k) contributions reduce Social Security and Medicare?
No. Traditional 401(k), 403(b) and 457(b) deferrals reduce federal income tax (and income tax in most states) but are still subject to FICA. Section 125 cafeteria-plan items such as pre-tax health premiums and payroll HSA contributions reduce FICA as well.
What is the difference between biweekly and semi-monthly pay?
Biweekly pay comes every two weeks, 26 times a year. Semi-monthly pay comes twice a month, 24 times a year, so each check is larger on the same salary. In some years a biweekly schedule has 27 paydays.
Why did my Social Security deduction stop in December?
Social Security tax applies only up to the annual wage base, $184,500 for 2026. Once your year-to-date wages pass it, the deduction stops until January. Medicare has no cap.
Is there a calculator for my state?
Yes. The US paycheck calculator covers all 50 states and DC, and 8 states have their own detailed pages with worked examples and local rules.
Sources
This guide explains how things work in general terms. It isn’t financial, tax or legal advice. Spotted something out of date? Email errors@moneyotter.com and we’ll check it against the source.