How to use the paycheck withholding calculator
Federal income tax withholding follows the percentage method in IRS Publication 15-T, using the entries on your Form W-4 rather than a flat rate. This calculator walks the same worksheet: annualize your pay, apply Step 4 adjustments and the standard deduction, run the brackets, then subtract Step 3 credits and divide back to one paycheck.
The adjusted annual wage amount is where most of the difference comes from. Other income in Step 4(a) raises it, deductions in Step 4(b) lower it, and the standard deduction is subtracted unless the Step 2 checkbox is marked. Step 4(c) adds a flat amount to every paycheck after the calculation.
Bracket thresholds and the standard deduction are indexed each year, so the amounts used here reflect the 2026 tax year and the standard deduction field is editable. Withholding is an estimate of your final liability, not the liability itself, which is settled when you file Form 1040.
Social Security, Medicare, state income tax, retirement contributions and benefit premiums are not included, so your take-home pay will be lower than gross pay minus this figure. Use the IRS Tax Withholding Estimator or ask your payroll department to confirm before changing your W-4.
Frequently Asked Questions
No. It covers federal income tax withholding only. FICA taxes of 6.2% for Social Security up to the wage base and 1.45% for Medicare are withheld separately, along with any state or local income tax.
Checking it tells your employer to use the higher withholding table built for two earners, which applies each bracket over half the income. It is meant for households with two jobs so that too little is not withheld.
The bracket thresholds and standard deduction are indexed every year and published in Publication 15-T and the annual revenue procedure. Editing the amount lets you match whichever year your employer is withholding under.