You were offered $60,000 a year, which is $2,307.69 every two weeks. Then the first deposit lands and it is closer to $1,900, or less if you live in California or signed up for benefits. Nothing went wrong: between gross pay and net pay sit half a dozen deductions, some required by law, some chosen by you, and a few that depend entirely on your state.
This guide walks through a pay stub line by line with 2026 figures: federal withholding, Social Security up to the 2026 wage base, Medicare and the extra 0.9%, state and local tax, state disability and paid-leave programs, pre-tax and post-tax deductions, the W-4, pay frequency and the odd behaviour of first and last paychecks. Every example uses the same 2026 numbers as our free Paycheck Calculator, so you can rerun them with your own pay.
This guide is educational, not tax advice. It explains how payroll deductions work; your employer's payroll system, your W-4 and your state's rules decide the exact amounts. Check your pay stub and, if needed, a qualified tax professional.
Reading a pay stub line by line
Most stubs follow the same order: earnings at the top, then taxes, then other deductions, then net pay. Here is a bi-weekly stub for a single filer earning $60,000 in Texas, with no benefits:
| Line | This paycheck | Year to date (full year) |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax withholding | -$193.08 | -$5,020 |
| Social Security (OASDI), 6.2% | -$143.08 | -$3,720 |
| Medicare, 1.45% | -$33.46 | -$870 |
| State income tax (Texas has none) | $0.00 | $0 |
| Net pay | $1,938.08 | $50,390 |
That is about 84% of gross. The year-to-date column matters more than most people realise: it is how you spot the Social Security cap, check that your 401(k) contributions are on track, and compare your withholding with what you expect to owe.
Gross pay
Your salary divided by the number of paychecks, plus any overtime, bonus or commission in that period. Hourly workers see hours times rate. Everything below is subtracted from this figure.
Federal income tax withholding
Your employer estimates your yearly federal income tax from your pay and your Form W-4, then withholds a slice each paycheck. For 2026 the single standard deduction is $16,100. On $60,000, taxable income is $43,900, and the brackets give $5,020 of tax: 10% on the first $12,400 and 12% on the rest. Divided by 26 paychecks, that is the $193.08 above. For a full walk-through of brackets and why your top rate is not your average rate, see how income tax is calculated.
Social Security: 6.2% up to $184,500
Social Security tax (labelled OASDI or FICA-SS on many stubs) is a flat 6.2% of wages, matched by your employer. It stops at the wage base, which is $184,500 for 2026 according to the SSA, so the most any employee pays is $11,439 a year. On $60,000 it is $3,720; on $120,000 it is $7,440.
Medicare: 1.45%, plus 0.9% above $200,000
Medicare tax is 1.45% of all wages with no cap. Under the IRS rules for Social Security and Medicare, your employer must also withhold an Additional Medicare Tax of 0.9% on wages above $200,000 in the year, whatever your filing status. Married couples filing jointly actually owe it only above $250,000 combined, so it is settled on the tax return. On $60,000, Medicare is $870; on $250,000 it is $4,075, of which $450 is the additional tax.
State and local income tax
Nine states, including Texas, Florida and Washington, have no income tax on wages. The rest withhold under their own brackets and deductions. California's 2026 brackets run from 1% to 12.3% (plus 1% above $1 million). Some cities and counties add a local wage tax, for example New York City (3.078% to 3.876% for residents) and many cities in Ohio and Pennsylvania.
State disability and paid-leave programs
A handful of states run disability or paid family leave insurance funded by employee payroll deductions. These are the 2026 figures the Paycheck Calculator uses:
| State | Program | Employee rate (2026) |
|---|---|---|
| California | SDI, including paid family leave | 1.3% of all wages, no cap |
| New Jersey | TDI + family leave insurance | 0.19% + 0.23% up to $171,100 |
| New York | Paid Family Leave + disability | 0.432% (max $411.91) + up to $0.60/week |
| Washington | Paid Family & Medical Leave + WA Cares | 0.8072% up to $184,500 + 0.58% |
| Colorado | FAMLI (employee half) | 0.44% up to $184,500 |
California's rate is set each year by the Employment Development Department; it rose to 1.3% for 2026, and since 2024 there has been no wage ceiling. On $120,000 that is $1,560 a year. Connecticut, Delaware, Maine, Massachusetts, Oregon, Rhode Island and others run similar programs.
Pre-tax deductions: 401(k), HSA and health premiums
Pre-tax deductions come out before income tax is worked out, so each dollar costs you less than a dollar of take-home pay. They do not all work the same way, though:
| Deduction | Cuts federal income tax? | Cuts Social Security and Medicare? |
|---|---|---|
| Traditional 401(k), 403(b) | Yes | No |
| Health, dental, vision premiums (section 125) | Yes | Yes |
| HSA through payroll (section 125) | Yes | Yes |
| Roth 401(k) | No | No |
The IRS sets these rules out in Publication 15-B. Most states follow federal treatment, with exceptions: California taxes HSA contributions, and Pennsylvania and Massachusetts tax 401(k) deferrals. The 2026 limit for employee 401(k) deferrals is $24,500. To see how a contribution grows over time, try the 401(k) Calculator.
Post-tax deductions: Roth, garnishments and the rest
These come out after all taxes and reduce take-home pay dollar for dollar: Roth 401(k) contributions, union dues, life or disability insurance above the tax-free level, charitable payroll giving, loan repayments to a 401(k), and wage garnishments. Under federal law, the Department of Labor explains that garnishment for ordinary debts is limited to 25% of disposable earnings (or less for low earners), while child support can take 50% to 60%, plus 5% if more than 12 weeks behind.
Worked examples: $60,000 and $120,000 in Texas vs California
All four examples are single filers paid bi-weekly (26 checks), standard W-4, no other income. First, with no benefits at all:
| Per paycheck | $60k Texas | $60k California | $120k Texas | $120k California |
|---|---|---|---|---|
| Gross | $2,307.69 | $2,307.69 | $4,615.38 | $4,615.38 |
| Federal withholding | $193.08 | $193.08 | $675.77 | $675.77 |
| Social Security | $143.08 | $143.08 | $286.15 | $286.15 |
| Medicare | $33.46 | $33.46 | $66.92 | $66.92 |
| State income tax | $0.00 | $60.50 | $0.00 | $260.42 |
| CA SDI (1.3%) | $0.00 | $30.00 | $0.00 | $60.00 |
| Take-home | $1,938.08 | $1,847.57 | $3,586.54 | $3,266.12 |
| Take-home per year | $50,390 | $48,037 | $93,250 | $84,919 |
| Share of gross deducted | 16.0% | 19.9% | 22.3% | 29.2% |
At $60,000 the state difference is about $2,353 a year; at $120,000 it grows to about $8,331, because California's rate climbs to 9.3% on income above $75,197 of taxable income. Federal withholding, Social Security and Medicare are identical in both states.
Now add typical benefits: a 5% 401(k) at $60,000 or 6% at $120,000, plus a $100 per-paycheck health premium through a cafeteria plan:
| Per paycheck | $60k Texas | $60k California | $120k Texas | $120k California |
|---|---|---|---|---|
| 401(k) | $115.38 | $115.38 | $276.92 | $276.92 |
| Health premium | $100.00 | $100.00 | $100.00 | $100.00 |
| Federal withholding | $167.23 | $167.23 | $592.85 | $592.85 |
| Social Security | $136.88 | $136.88 | $279.95 | $279.95 |
| Medicare | $32.01 | $32.01 | $65.47 | $65.47 |
| State income tax | $0.00 | $47.58 | $0.00 | $225.36 |
| CA SDI | $0.00 | $28.70 | $0.00 | $58.70 |
| Take-home | $1,756.19 | $1,679.91 | $3,300.19 | $3,016.12 |
Look at the $60,000 Texas column: $215.38 of benefit deductions lowered take-home by only about $182, because federal withholding fell by $25.85 and Social Security and Medicare by $7.65 (the health premium is exempt from both; the 401(k) is not). In California the 401(k) and premium also cut state tax, and the premium cuts SDI.
The W-4: why withholding is not your final tax
The Form W-4 tells payroll how to estimate your tax. Since 2020 it has no allowances; instead you fill in up to five steps: filing status, a box for multiple jobs or a working spouse (Step 2), dependents (Step 3), other income, deductions and extra withholding (Step 4). If you never submit one, payroll treats you as single with no adjustments.
Withholding assumes each paycheck is your only income for the whole year at that rate. Your real tax is decided on your return, so the two differ when:
- You have two jobs, or both spouses work. Each employer applies the full standard deduction and low brackets, so the household is under-withheld unless Step 2 is used.
- You have side, investment or freelance income with no withholding at all.
- Your income changed mid-year, such as a raise, a bonus or months without work.
- You claim credits or itemise beyond what you told the W-4.
- Bonuses are often withheld at a flat 22% federal rate as supplemental wages, which may be more or less than your real rate.
A big refund means you lent money to the government interest-free; a big bill means you under-withheld. The IRS Tax Withholding Estimator works out what to enter, and Step 4(c) lets you add a fixed extra amount per paycheck.
How pay frequency changes each check
Pay frequency changes the size of each check, not your yearly total. For $60,000 in Texas with no benefits:
| Frequency | Checks a year | Gross per check | Take-home per check |
|---|---|---|---|
| Weekly | 52 | $1,153.85 | $969.04 |
| Bi-weekly | 26 | $2,307.69 | $1,938.08 |
| Semi-monthly | 24 | $2,500.00 | $2,099.58 |
| Monthly | 12 | $5,000.00 | $4,199.17 |
The trap is bi-weekly versus semi-monthly. Both sound like “twice a month”, but bi-weekly checks are $161.50 smaller here because there are 26 of them. In exchange, two months a year bring a third paycheck. Budget on two checks a month and treat the third as a bonus. Some employers also take benefit premiums from only 24 of the 26 checks, so the two “extra” checks are larger still.
Why is my first paycheck different?
First paychecks are rarely typical. The usual reasons:
- A partial pay period. Start halfway through a bi-weekly cycle on $60,000 and your first gross is about $1,153.85, not $2,307.69.
- Pay in arrears. Many employers pay one period behind, so your first check may arrive two or more weeks after you start.
- Benefits timing. Coverage often starts on the first of the next month, so premiums are missing at first, then appear, sometimes with a catch-up deduction.
- Your W-4. If you did not submit one in time, you are withheld as single with no adjustments.
- One-off items such as a signing bonus withheld at 22%, uniform or equipment charges, or a 401(k) auto-enrollment starting after a waiting period.
The same logic explains other odd checks: the one after a raise, the one that includes a bonus, and the last one, which may include payout of unused vacation.
The mid-year jump when you hit the Social Security cap
High earners often notice a sudden raise in take-home pay late in the year. Take a $250,000 salary paid bi-weekly ($9,615.38 a check):
| Paycheck | Wages to date | Social Security | Medicare (incl. 0.9%) |
|---|---|---|---|
| 1 to 19 | up to $182,692 | $596.15 each | $139.42 |
| 20 | $192,308 | $112.08 (cap reached) | $139.42 |
| 21 | $201,923 | $0.00 | $156.73 |
| 22 to 26 | up to $250,000 | $0.00 | $225.96 |
From check 22 onward, take-home is about $510 higher than in the spring ($596.15 less Social Security, $86.54 more Medicare). It is not a raise: the year's total is fixed at $11,439. The cap resets every January, so the first check of the new year drops back. If you have two employers, each one withholds up to the cap; any excess over $11,439 comes back as a credit on your return.
The short version
Take-home pay is gross pay minus federal withholding, 7.65% for Social Security and Medicare (until the $184,500 cap), state and local tax, any state disability or leave premium, and your benefit elections. Taxes depend mostly on your state and your W-4; benefits are your choice and usually worth more than they cost in take-home pay. Check your year-to-date figures a few times a year, update your W-4 after any life change, and rerun the numbers whenever your pay or state changes.
Frequently asked questions
Why is my take-home pay so much lower than my salary?
Because several deductions come out before you are paid: federal income tax withholding, Social Security (6.2%), Medicare (1.45%), state and sometimes local income tax, state disability or paid-leave premiums, and any benefits you signed up for. A single filer earning $60,000 in Texas with no benefits takes home about $50,390 a year (84%); the same salary in California leaves about $48,037 (80%).
How much is taken out of a $60,000 paycheck?
Paid bi-weekly as a single filer with no benefits, each $2,307.69 check loses about $193.08 to federal withholding, $143.08 to Social Security and $33.46 to Medicare, leaving $1,938.08 in Texas. In California, state income tax of about $60.50 and SDI of $30.00 bring it down to about $1,847.57.
When do I stop paying Social Security tax in 2026?
Once your wages for the year from one employer pass $184,500, the Social Security wage base for 2026. The maximum employee tax is $11,439. On a $250,000 salary paid bi-weekly, the cap is reached on the 20th paycheck, and paychecks 21 to 26 are about $596 larger. Medicare has no cap, and 0.9% more is withheld once your wages pass $200,000.
Why is my first paycheck different from the rest?
Common reasons are a partial pay period (you started mid-cycle), paying in arrears so the first check arrives later than expected, benefit deductions starting a period late or catching up, and the W-4 you submitted. A half-period first check on a $60,000 salary is about $1,153.85 gross instead of $2,307.69.
Does a 401(k) contribution reduce Social Security and Medicare tax?
No. A Traditional 401(k) contribution lowers federal and most state income tax, but Social Security and Medicare are still charged on it. Health, dental and vision premiums paid through a section 125 cafeteria plan, and HSA contributions made through payroll, do reduce Social Security and Medicare wages as well.
Is the federal tax withheld from my paycheck my actual tax?
No. Withholding is an estimate based on your W-4 and pay. Your real tax is worked out on your return. If too much was withheld you get a refund; if too little, you owe. Two jobs, a working spouse, side income or large credits are the usual reasons the two differ, and the IRS Tax Withholding Estimator can help you adjust your W-4.
This guide is general information, not professional advice. Rates and rules change — check the official source before you file or sign anything. See our Disclaimer.