Understanding Your Paycheck
Your take-home pay is your gross salary minus federal income tax, FICA taxes (Social Security + Medicare), state income tax, and any pre-tax deductions.
Net Pay = Gross − Federal Tax − FICA − State Tax − Pre-Tax Deductions
FICA Taxes (2025-2026)
- Social Security: 6.2% on income up to $176,100 (2025)
- Medicare: 1.45% on all income + 0.9% additional on income over $200,000
- Total FICA: 7.65% for most employees
Frequently Asked Questions
Why is my paycheck so small? Federal tax, state tax, and FICA combined can take 25-40%+ of your gross pay depending on income and location.
How do pre-tax deductions help? 401(k), HSA, and similar contributions reduce your taxable income, lowering your tax bill while building savings.