Your first US paystub is a shock for most people. Your hourly rate or salary is set, yet the money that actually lands in your account (net pay) is a lot less. "What are all these lines?" Here's what comes out of a US paycheck, item by item.
Want your real take-home from a salary? Use the US paycheck calculator to see net pay after taxes and deductions.
Gross pay → net pay
Gross pay at the top is your pre-tax total; net pay (take-home) is what's left after taxes, insurance and retirement come out. Those deductions fall into three buckets: taxes, FICA, and pre-tax items.
① Federal income tax
Withheld based on the W-4 you complete at hire. It's progressive — higher income, higher rates — and your dependents/adjustments change how much is withheld. A poorly filled W-4 can over- or under-withhold.
② FICA — Social Security + Medicare
The US payroll taxes for retirement and hospital insurance. For 2026:
- Social Security 6.2% — only on income up to $184,500 (nothing above that).
- Medicare 1.45% — on all wages (no cap), plus an extra 0.9% on income over $200,000.
Together that's 7.65% of most paychecks (your employer pays a matching amount).
③ State income tax
Varies by state. Some — Texas, Florida, Washington — have no state income tax; others like California and New York are high. The same salary yields very different take-home depending on where you live.
④ Pre-tax deductions — they actually cut your tax
These come out before tax is figured, so contributing lowers your taxable income and your tax.
- 401(k) — workplace retirement. Every dollar lowers taxable income (grab the employer match if offered).
- Health insurance premiums and HSA/FSA are usually pre-tax too.
FAQ
Why does my take-home jump late in the year?
Social Security only applies up to $184,500. High earners who hit that cap stop paying the 6.2% for the rest of the year, so take-home rises.
It feels like too much tax is withheld.
Adjust your W-4 to change withholding. Over-withholding comes back as a refund, but your money is tied up until then.
US take-home is set by federal tax + FICA + state tax + pre-tax deductions. Understanding your stub lets you optimize take-home via your W-4 and 401(k).
This is general 2026 information, not tax advice. Rates and limits change yearly and depend on your situation — confirm with a professional.
