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NetWageTax

Tax year 2026. Federal, FICA, and state rules last checked . How we calculate

How we calculate

Where our numbers come from, what they assume, and why they can differ from your actual paycheck or tax bill.

Tax year
2026
Rules last checked
October 4, 2026
State data
2026 tax year (laws enacted through mid-2026)Some bracket tables show the latest year the state has published.

Sources

  • Federal income tax. The 2026 brackets (10% to 37%) and standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) come from the IRS inflation adjustments in Revenue Procedure 2025-32.
  • Social Security and Medicare. Social Security is 6.2% of wages up to the 2026 wage base of $184,500, published by the Social Security Administration. Medicare is 1.45% of all wages, plus an additional 0.9% on wages above $200,000 ($250,000 married filing jointly).
  • Schedule 1-A deductions. The One Big Beautiful Bill Act (Public Law 119-21), the Internal Revenue Code sections it added, and the IRS Schedule 1-A and its instructions. The tips and overtime deduction (sections 224 and 225) is capped at $25,000 for qualified tips and $12,500 for qualified overtime ($25,000 married filing jointly), and phases out above $150,000 of modified AGI ($300,000 married filing jointly). The enhanced deduction for seniors (section 151(d)(5)(C)) is $6,000 for each person 65 or older, reduced by 6% of modified AGI above $75,000 ($150,000 married filing jointly). The car loan interest deduction (section 163(h)(4)) is capped at $10,000 per return and reduced by $200 for each $1,000, or part of it, of modified AGI above $100,000 ($200,000 married filing jointly), following the Treasury's final regulations (TD 10054). The senior and car loan interest calculators follow the 2026 draft Schedule 1-A until the IRS publishes the final form and instructions.
  • State income tax. Each state's tax agency. Every state page links to its official source, and bracket tables name the document they were copied from. How each state treats the tips and overtime deduction, with its source, is in our guide to which states tax tips and overtime.

What's calculated exactly and what's estimated

Calculated from the published rules: federal income tax on your taxable income, Social Security, Medicare (including the additional Medicare tax), and the Schedule 1-A deductions with their caps and phase-outs. For the inputs you enter, these follow the law step by step.

State income tax is calculated in one of two ways, depending on the state. Neither is a full state tax return:

  • States with no wage tax are $0.
  • Full bracket calculation: Arizona, California, Georgia, Maryland, New York, North Carolina, Oregon, South Carolina, and West Virginia. We subtract the state's own deduction or exemption (in South Carolina, a deduction that shrinks as income rises; in Maryland, personal exemptions that shrink above $100,000 of federal AGI) and, in Oregon, the federal income tax you pay, up to its limit. Then we run every bracket on the rest, add special surcharges such as California's 1% tax on taxable income over $1 million, and subtract personal credits such as California's personal exemption credit. In the tips and overtime calculator, Oregon's subtraction uses your federal tax after the tips and overtime deduction. Maryland's figure is state tax only: county income taxes aren't included. Each state page shows the calculation bracket by bracket.
  • Simplified estimate, for the other states that tax wages. Flat-rate states apply their rate to wages above an approximate single-filer deduction or exemption. The other states with progressive brackets use one average rate, calibrated for a single filer earning about $65,000, instead of running every bracket. Results are close for typical salaries and less accurate for much higher or lower incomes.
  • The bracket calculation uses each state's own brackets, deduction, and credits for single, married filing jointly, and head of household returns. Married filing separately, and every filing status in the simplified estimate, use single-filer figures, and the calculators say so next to the state tax: we don't have those brackets yet. Neither includes other state tax credits or local income taxes. In the tips and overtime calculator, both first subtract what your state allows for tips and overtime: the final federal deduction in states that follow it, the tips part only in states that follow it for tips only, and the state's own capped amounts in Georgia and Alabama. The paycheck calculator and the state pages tax full wages. Each state's treatment is listed in our guide to which states tax tips and overtime.

Paychecks can also differ from our figures because employers withhold using IRS Publication 15-T and your Form W-4, while we estimate the tax you owe for the full year.

What the estimates assume

  • You take the standard deduction rather than itemizing.
  • No pre-tax deductions: no 401(k) or 403(b) contributions, health insurance premiums, or HSA contributions.
  • No Form W-4 adjustments for dependents, other income, or extra withholding.
  • No federal or state tax credits, except the personal credits of the states calculated bracket by bracket.
  • No local income taxes from cities, counties, or school districts.
  • In the paycheck calculator, state payroll deductions such as California SDI, paid family and medical leave, Washington's WA Cares, and the employee share of unemployment insurance in Alaska, New Jersey, and Pennsylvania are taken at the maximum employee share. Some employers pay part of it or have a private plan. They come out of take-home pay after taxes and don't change your income tax.
  • In the paycheck calculator: 52 weeks of pay a year, overtime paid at 1.5× your hourly rate, and no tips and overtime deduction (use the tips and overtime calculator for that).
  • In the senior deduction calculator: the standard deduction plus the additional amount for age 65 ($2,050 unmarried, $1,650 for each spouse 65 or older), and income that may not be wages, so no Social Security or Medicare.

How often we review the data

We update federal and FICA figures when the IRS and the Social Security Administration publish the next year's numbers, usually in October and November. We review the state data every January and whenever a state changes its law during the year. The date in the strip at the top of every page shows the last review.

Report an error

If a number looks wrong, contact us with the page, the values you entered, and what you expected to see. We check every report against the official source and fix confirmed errors.

NetWageTax gives estimates for educational purposes, not tax advice. See our disclaimer.