Expect somewhere between 20% and 35% of a typical paycheck to disappear before it hits your bank account. What percentage of your paycheck is taken out for taxes depends on three moving parts: a flat 7.65% for Social Security and Medicare that everyone pays, federal income tax that runs from 10% to 37% depending on your earnings, and state or local tax that ranges from nothing to double digits based on where you live. A few choices you make on a single IRS form also shift the number up or down.
The 7.65% Everyone Pays
Before federal or state income tax touches your check, FICA takes 7.65% of your gross wages. That breaks into 6.2% for Social Security and 1.45% for Medicare, and there are no brackets or deductions to soften either one.1Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax Your employer pays a matching 7.65% on your behalf, though that half never shows up on your pay stub.2Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
The Social Security piece has a ceiling. In 2026, you only pay the 6.2% on the first $184,500 of wages.3Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet Once your year-to-date earnings pass that mark, the Social Security line disappears and your take-home jumps for the rest of the year. Medicare has no cap; every dollar of wages is subject to the 1.45%.2Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
High earners get an extra layer. An Additional Medicare Tax of 0.9% starts once wages pass $200,000 for single filers, $250,000 for joint filers, or $125,000 for married filing separately.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax Your employer begins withholding it automatically once you cross $200,000 in a calendar year, regardless of filing status. There is no employer match on this piece.
Federal Income Tax: The Biggest Variable
Federal income tax is where the range gets wide. The system is progressive: your income is sliced into layers, and each layer is taxed at its own rate.5Office of the Law Revision Counsel. 26 USC 1 – Tax Imposed Before any layer applies, the standard deduction comes off the top. For 2026, that deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.6Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill Only income above that threshold gets taxed.
For single filers in 2026, the brackets on taxable income (after the standard deduction) are:6Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
- 10% up to $12,400
- 12% from $12,401 to $50,400
- 22% from $50,401 to $105,700
- 24% from $105,701 to $201,775
- 32% from $201,776 to $256,225
- 35% from $256,226 to $640,600
- 37% above $640,600
Joint filer brackets are roughly double the single figures at each step. Reaching a higher bracket does not push all your income into that rate. A single filer with $60,000 in taxable income pays 10% on the first $12,400, 12% on the chunk up to $50,400, and 22% only on the remaining $9,600. The blended result is an effective federal rate well under 22%. Most workers with a 22% or 24% top bracket end up paying an effective rate in the low to mid teens.
State and Local Tax: The Geography Variable
State income tax adds another line item that varies widely by where you live. A handful of states collect nothing. Others use progressive brackets with top rates above 10%. Most states with an income tax fall between 3% and 7%, though flat-rate states apply the same percentage regardless of income.
Cities and counties sometimes layer on their own income taxes as well, usually small percentages that fund local services. Local rates generally run from under 1% up to a few percent. Your employer determines which local taxes apply based on where you live and work, and in some jurisdictions you can owe tax to both. Combined state and local withholding can run from zero to over 13%.
A smaller group of states also requires employee contributions to disability insurance or paid family leave. Where these programs exist, they typically add between 0.2% and 1.3%, often up to an annual cap.
What You Control: The W-4 and Pre-Tax Deductions
Federal withholding is not fixed by law at a single rate. Your employer calculates it from instructions you give on IRS Form W-4.7Internal Revenue Service. About Form W-4, Employee’s Withholding Certificate You fill one out when you start a new job and can update it anytime. If you never submit one, your employer must withhold as though you’re a single filer with no credits or adjustments, which usually means more comes out than necessary.8Internal Revenue Service. Topic No. 753, Form W-4, Employees Withholding Certificate
The form asks for your filing status (Single, Married Filing Jointly, or Head of Household), which determines the brackets and standard deduction applied to your check.9IRS.gov. Form W-4 (2026) – Employee’s Withholding Certificate You can also claim the Child Tax Credit for qualifying children, which lowers withholding directly instead of waiting for a refund. If you work multiple jobs or your spouse works, a separate section lets you account for that extra income so you don’t come up short at tax time.
Certain deductions come out of gross pay before federal tax is even calculated, which shrinks the wages your employer applies the brackets to. Traditional 401(k) contributions are excluded from federal taxable income in the year you make them.10Internal Revenue Service. 401(k) Plan Overview For 2026, you can defer up to $24,500 through your employer’s plan, or $31,000 if you’re 50 or older.11Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026; IRA Limit Increases to $7,500 Traditional 403(b) and governmental 457 plans get the same treatment.
Health insurance premiums and flexible spending account contributions typically run through a Section 125 cafeteria plan, which means those dollars are excluded from both income tax and FICA.12Internal Revenue Service. FAQs for Government Entities Regarding Cafeteria Plans Health Savings Account contributions get similar treatment, with 2026 limits of $4,400 for self-only coverage and $8,750 for family coverage.13Internal Revenue Service. IRS Notice 26-05 – HSA Inflation Adjustments Not contributing to any of these means every dollar of your gross pay is fully exposed to tax.
Why Your Bonus Looks Taxed to Death
Bonuses and other supplemental pay often look savaged by tax, and there’s a specific reason. Employers can withhold federal income tax on supplemental wages at a flat 22%, regardless of your actual bracket.14Internal Revenue Service. Publication 15 (2026), (Circular E), Employer’s Tax Guide If supplemental wages exceed $1 million in a calendar year, the rate on the excess jumps to 37%. FICA still applies on top of that.
The 22% is a withholding method, not your actual tax rate on the bonus. When you file your return, all income gets pooled and taxed under the regular brackets. If 22% turned out to be more than you owed, you get the difference back as a refund. If your bracket is higher, you may owe a little more. The paycheck hit tends to feel worse than the final tax reality.
If You’re Self-Employed, the Math Changes
None of the withholding math above applies if you’re a freelancer, independent contractor, or business owner. Nobody withholds FICA for you, and you pay the full 15.3% yourself, covering both the employee and employer halves of Social Security (12.4%) and Medicare (2.9%).15Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) The Social Security portion applies up to the same $184,500 wage base W-2 workers face.3Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet You can deduct half of your self-employment tax when calculating adjusted gross income, which trims your federal income tax bill.16Internal Revenue Service. Topic No. 554, Self-Employment Tax Federal and state income tax still apply on top of the 15.3%.