PayFigi

Methodology

Our calculator turns your gross annual income into an estimated net paycheck. This page explains the assumptions and formulas behind every result.

1. Federal income tax

We start with your gross annual income, subtract the 2026 federal standard deduction for your filing status, and apply the official IRS tax brackets using marginal tax rates.

  • Single standard deduction: $16,100
  • Married filing jointly: $32,200
  • Married filing separately: $16,100
  • Head of household: $24,150

2. FICA payroll taxes

We calculate Social Security and Medicare taxes as follows:

  • Social Security: 6.2% on wages up to the 2026 wage base of $184,500.
  • Medicare: 1.45% on all wages with no cap.
  • Additional Medicare Tax: 0.9% on wages above $200,000 (single/HOH), $250,000 (joint), or $125,000 (separate).

3. State income tax

Each state is modeled as one of three types: no income tax, flat income tax, or progressive income tax. For progressive states, we subtract the state standard deduction and apply the state's marginal brackets.

4. Net pay

Net annual pay equals gross income minus federal income tax, FICA, and state income tax. We also show monthly and biweekly equivalents by dividing by 12 and 26.

5. Compare and embed tools

The state comparison tool runs the same engine for two states at a time so you can evaluate a relocation or job offer. The embeddable calculator lets third-party sites add the calculator through a simple iframe.

Important assumptions

  • We use the standard deduction only. Itemized deductions are not included.
  • Traditional 401(k) contributions reduce federal taxable income and most state taxable income, but do not reduce FICA wages.
  • HSA contributions made through payroll reduce both federal taxable income and FICA wages.
  • State taxable income is approximated as federal AGI (gross income minus pre-tax deductions) minus the state standard deduction or exemption. States that conform to federal taxable income (CO, ID, IA, MT, NM, ND, SC) start from federal taxable income instead.
  • Local income taxes (for example, NYC, Yonkers, Ohio/PA localities) are not included yet.
  • Where a state does not publish separate married-filing-separately or head-of-household brackets, we fall back to the single-filer schedule as a conservative estimate.
  • All figures are estimates for the 2026 tax year.

Not tax advice

PayFigi is a free estimation tool, not a tax advisor. The results on this site are for informational purposes only and should not be used to prepare or file a tax return, make financial decisions, or replace guidance from a CPA, tax attorney, enrolled agent, or the IRS and your state tax agency. Always verify important figures with an official source or qualified professional.

Data sources