Taxes everyone pays
- Federal income tax: depends on your pay, W-4 and filing status.
- Social Security: 6.2% of wages up to $184,500 in 2026.
- Medicare: 1.45% of all wages, plus 0.9% on wages over $200,000 from one employer.
Then, depending on where you work: state income tax, local income tax, and state disability, paid leave or unemployment premiums.
Which deductions lower which taxes
This is the general federal treatment. A few states don’t conform, and those exceptions are listed from the calculator’s state rules.
| Deduction | Federal income tax | Social Security & Medicare | States that tax it anyway |
|---|---|---|---|
| 401(k) / 403(b) / 457 | Lowers it | No effect | Pennsylvania |
| Health, dental & vision premiums | Lowers it | Lowers it | New Jersey |
| HSA (payroll) | Lowers it | Lowers it | California, New Jersey |
| Health FSA | Lowers it | Lowers it | New Jersey |
| Dependent care FSA | Lowers it | Lowers it | New Jersey, Pennsylvania |
| Commuter / transit | Lowers it | Lowers it | Pennsylvania |
| Roth 401(k) | No effect | No effect | – |
Traditional vs Roth on a paycheck
$70,000 salary, weekly, Texas. A 6% contribution is $80.77 a week either way:
- No contribution: $1,116.82 take-home
- 6% traditional 401(k): $1,052.48 (costs $64.34 of take-home)
- 6% Roth 401(k): $1,036.05 (costs $80.77)
Benefits that come out before tax
Health, dental and vision premiums, HSA contributions through payroll, health and dependent care FSAs andcommuter benefits are usually taken through a Section 125 cafeteria plan or as a qualified transportation fringe. They skip federal income tax, Social Security and Medicare. A traditional 401(k), 403(b) or 457(b) skips income tax but not FICA.
Deductions that come out after tax
Roth contributions, union dues, voluntary life and disability insurance, charitable gifts, loan repayments and garnishments come out after taxes and lower take-home dollar for dollar.
Add your benefits in the calculator and expand each line to see which wages it reduced.
Frequently asked questions
Which paycheck deductions are mandatory?
Federal income tax (based on your W-4), Social Security, Medicare, any state and local income taxes, and mandatory state programs such as disability or paid leave premiums. Court-ordered garnishments are also mandatory. Benefits and retirement contributions are voluntary.
Are health insurance premiums pre-tax?
Usually, when your employer offers them through a Section 125 cafeteria plan. Pre-tax premiums lower federal, Social Security, Medicare and most state taxable wages.
Is it better to contribute to a traditional or Roth 401(k)?
Traditional saves tax now and is taxed when withdrawn; Roth costs more today but is tax-free later if rules are met. The paycheck difference is shown on this page; the long-term choice depends on your tax rate now versus in retirement.
