How Your Paycheck Is Taxed: Federal Tax + FICA

The three main deductions

Before taxes, a typical paycheck loses money to federal income tax withholding and FICA. FICA has two parts:

• Social Security: 6.2% of wages up to the $184,500 wage base (2026)
• Medicare: 1.45% of all wages, plus 0.9% on wages over $200,000 (single) or $250,000 (married filing jointly)

Federal income tax withholding

Your employer estimates your annual federal tax from your W-4 and withholds a portion each pay period. This is a prepayment — you settle the exact amount when you file your return.

Why take-home is less than salary ÷ pay periods

Take-home per paycheck = (annual salary − federal tax − Social Security − Medicare − any pre-tax deductions like 401(k) or health premiums) ÷ number of pay periods. State tax, if any, reduces it further.

FAQ

What is FICA?

FICA is the payroll tax that funds Social Security (6.2%) and Medicare (1.45%). Both you and your employer pay it.

Does a 401(k) contribution lower my tax?

Traditional 401(k) contributions are pre-tax, so they reduce your taxable income (though not the Social Security/Medicare base).

Related calculators

• Paycheck Take-Home Calculator
• Federal Income Tax Calculator (2026)