Paycheck & Tax Guides
The calculators on this site give you a number in seconds. These guides give you the understanding behind the number: how US payroll tax actually flows from a gross salary to the amount in your bank account, what changed for 2026, and where the common misunderstandings hide.
Every guide is written from the same official parameters the calculators use - IRS Rev. Proc. 2025-32 for the 2026 federal brackets and standard deductions, the Social Security Administration wage base, Internal Revenue Code Sections 224 and 225 for the 2025-2028 tips and overtime deductions, and the Tax Foundation's 2026 state tables - and each one is stamped with the date it was last updated. Start with how paycheck tax is calculated if you want the whole pipeline in one read.
How Paycheck Tax Is Calculated, Step by Step
Payroll annualises each paycheck, subtracts the standard deduction, taxes income in bracket slices, adds FICA and state tax, then divides the total across your pay periods. Here is each step, with the arithmetic shown.
2026 Federal Income Tax Brackets, Explained
The seven 2026 brackets for single and joint filers, why moving up a bracket never taxes your whole salary at the higher rate, and a fully worked example on $60,000 of pay.
FICA Taxes Explained: Social Security and Medicare
Social Security and Medicare take 7.65% of most paychecks, matched by your employer. How the 2026 wage base, the additional Medicare tax, and the self-employment tax work.
The 2026 Standard Deduction, Explained
For 2026 the standard deduction shelters $16,100 (single) or $32,200 (joint) of income from federal tax. When itemizing beats it, and the new overtime and tips deductions that stack on top.
Gross Pay vs Net Pay: What Comes Between Them
Taxes, FICA, retirement contributions, health premiums and garnishments all sit between your salary and your bank deposit. Why two people on exactly the same pay can take home very different amounts.
No Tax on Overtime: How the Deduction on the Overtime Premium Really Works
The new overtime deduction covers only the premium half of time-and-a-half, capped at $12,500/$25,000 with an income phase-out. Here is what counts, how to figure your amount from pay stubs for 2025, and how to claim it.
No Tax on Tips: Who Can Deduct Up to $25,000 of Tips — and What Counts
Workers in traditionally tipped occupations can deduct up to $25,000 of voluntary cash and charged tips for 2025–2028. We explain the occupation list, the phase-out, the joint-filing rule, and why FICA on tips is unchanged.
Overtime Pay Rules: How the FLSA Calculates Time-and-a-Half
Federal overtime is 1.5× your regular rate after 40 hours in a workweek — and the regular rate includes bonuses and shift differentials. We cover the workweek rule, the exempt duties tests and $684/week threshold, and why double time is never federal law.
States With No Income Tax: The Nine States That Don't Tax Wages in 2026
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming levy no tax on wages in 2026. Here are the fine-print exceptions and the other taxes these states lean on instead.
How to Read Your Pay Stub: Gross Pay, FICA, Deductions, and Net Pay
Your pay stub is an error report as much as a receipt. We walk through gross pay, tax lines, pre-tax vs post-tax deductions, employer-paid items, and the five checks to run every pay period.
Last updated: 2026-10-31. Tax parameters: 2026 (IRS Rev. Proc. 2025-32; SSA wage base; Tax Foundation state tables).