This page explains exactly how PayCheckly turns gross pay into take-home pay, and where every number comes from. Last reviewed November 4, 2026.
Federal income tax (2026)
Brackets and standard deduction ($16,100 single / $32,200 married / $24,150 head of household) from IRS Rev. Proc. 2025-32. Annual gross minus pre-tax deductions minus standard deduction, taxed by bracket (simplified annualized method). Optional W-4 Step 3 dependent credits reduce federal tax; other W-4 adjustments are not modeled.
FICA
Social Security 6.2% up to the 2026 wage base of $184,500 (SSA); Medicare 1.45% plus 0.9% Additional Medicare Tax withheld on wages over $200,000.
Pre-tax deductions
Traditional 401(k)/403(b) contributions reduce federal and state taxable income but not FICA wages. HSA contributions through payroll reduce income tax and FICA wages. State-specific exceptions (e.g. Pennsylvania taxing 401(k) deferrals) are not modeled.
State tax (checked 2026-11-04)
Each state page lists its tax year, official source and status. Brackets, standard deductions/exemptions and credits use separate single vs. married-filing-jointly values where the state defines them (head of household uses single state values). Checked against official 2026 publications: Alabama, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, NYC resident tax, CA SDI 1.3% (EDD). Every state was checked individually against its tax agency (withholding formula/tables 2026, rate schedule or statute) on 2026-11-04; the Tax Foundation 2026 table now serves only as a cross-check.
Corrections vs. Tax Foundation (as of 2026-02-11)
Utah 4.45% (not 4.5%) + taxpayer credit; Arkansas top rate 3.7% (not 3.9%); South Carolina Act 110 (1.99%/5.21%, SCIAD $15k/$30k with phase-out – no 6.2% July reversion); West Virginia 5% rate cut (SB 392); Maine 2026 brackets, std. deduction $15,700 + exemption $5,300; Hawaii std. deduction $8,000 (Act 46); California std. deduction $5,706; Maryland std. deduction $3,400; Massachusetts surtax threshold $1,107,750; North Dakota and Vermont 2026 brackets; Vermont exemption $5,400; Oregon credit $263. California exemption credit ($153/$306) is applied.
Not modeled
County/city taxes except NYC (e.g. MD, IN, OH, PA, MI, KY), state SDI/PFL other than CA, phase-outs of exemptions/credits except WI/SC standard deduction and the UT taxpayer credit, tax benefit recapture.
Open items
- Arizona: Rate 2.5% official. ADOR has only published the 2025 std. deduction ($15,750/$31,500, federal conformity); 2026 amount assumed = federal $16,100/$32,200 (ARS 43-1041) until ADOR confirms.
- Idaho: Rate 5.3% official (withholding EPB00744, 07-23-2026). Idaho has not yet published the 2026-indexed 0% bracket ($4,811/$9,622 are 2025 values).
- Wisconsin: Rates official (W-166 1/26). 2026-indexed brackets/std. deduction not found on a DOR page; values from Tax Foundation.