Step 1
Convert gross pay to an annual amount.
Use the amount before taxes and deductions. Annual salary can be used directly. For other pay frequencies, use the matching conversion:
- Hourly wage × weekly hours × working weeks
- Weekly gross pay × 52
- Biweekly gross pay × 26
- Monthly gross pay × 12
PayScope's hourly paycheck calculator uses 40 regular hours per week and 52 weeks unless you adjust for overtime separately.
Step 2
Identify pre-tax deductions.
Some payroll deductions can reduce income subject to federal income tax. A traditional 401(k) contribution is one example. It generally reduces federal taxable wages but does not remove the wages from Social Security and Medicare tax.
Step 3
Estimate federal taxable income.
For a simple annual estimate, subtract eligible pre-tax deductions and the standard deduction for the filing status from annual gross pay. Tax credits, itemized deductions, dependents and multiple jobs require more information than this simplified formula uses.
Step 4
Apply the federal income-tax brackets.
Federal income tax is progressive. Each slice of taxable income is taxed at the rate for that bracket; reaching a higher bracket does not apply the higher rate to every dollar.
Step 5
Add Social Security and Medicare.
Employee FICA includes Social Security and Medicare. PayScope applies the published 2026 Social Security wage base, the 1.45% employee Medicare rate and Additional Medicare Tax above the filing-status threshold.
Step 6
Subtract supported state and local amounts.
State and local rules vary. PayScope currently includes California and New York State estimates and identifies excluded local taxes. Texas and Florida do not impose individual state income tax on wages. Choose a state paycheck calculator for the supported rules.
Step 7
Calculate net pay and divide by the pay period.
Subtract the included deductions from gross pay. Divide annual net pay by 12 for a monthly equivalent, 26 for biweekly pay or 52 for weekly pay. An employer's actual payroll calendar may contain timing differences.
Worked example
$60,000 salary after tax in 2026.
This example uses a single filer in Texas with no 401(k), credits, benefits or local deductions. Texas does not impose individual state income tax on wages.
| Annual gross pay | $60,000 |
|---|---|
| Federal income tax | −$5,020 |
| Social Security | −$3,720 |
| Medicare | −$870 |
| Estimated annual take-home | $50,390 |
| Estimated monthly take-home | $4,199 |
| Estimated biweekly take-home | $1,938 |
Illustrative annual estimate. Your W-4, benefits, credits and employer deductions can change the actual result.
Why the result can differ
A paycheck calculator is an estimate, not a paystub.
- Form W-4 elections, dependents, tax credits and multiple jobs
- Health insurance, HSA, FSA, retirement and other benefits
- City, county or special payroll taxes not included by the calculator
- Bonus withholding and irregular payroll timing
- Unpaid time off, commissions, tips and employer-specific deductions
For withholding decisions, use the IRS Tax Withholding Estimator or consult a qualified professional.
Primary sources