How to Read Your Paycheck: Every Line Explained (2026)

A pay stub has a lot of lines. Here is what each one means, using a worked example: a $60,000 salary paid every two weeks to a single filer in Texas, which has no state income tax.

The example paycheck

Line	Per paycheck	How it is calculated
Gross pay	$2,307.69	$60,000 divided by 26 pay periods
Federal income tax	-$193.08	About $5,020 a year, split over 26 checks
Social Security	-$143.08	6.2% of gross pay
Medicare	-$33.46	1.45% of gross pay
Net pay	$1,938.08	What reaches your bank account

Net pay$1,938.0884.0%
Federal income tax$193.088.4%
Social Security$143.086.2%
Medicare$33.461.4%

Each line is rounded to the cent, so the lines can differ from the total by a cent. Real withholding is set by your employer's payroll system and your W-4, so it can differ a little from this estimate.

Gross pay

This is your pay before anything is subtracted. For a salaried worker it is the yearly salary divided by the number of pay periods. For an hourly worker it is the hourly rate times the hours worked, plus overtime at a higher rate if it applies. Try the hourly to salary calculator to convert between the two.

Pre-tax deductions

Some money comes out before income tax is figured. Traditional 401(k) contributions, health insurance premiums paid through your employer, and contributions to a health savings account or flexible spending account are common examples. They lower the pay your income tax is based on, so a $100 contribution usually costs you less than $100 of take-home pay. See what a contribution really costs with the 401(k) tax savings calculator.

Federal income tax

Your employer withholds federal income tax from each paycheck using the information on the Form W-4 you gave them: your filing status, extra jobs, dependents and any adjustments. It is a pay-as-you-go estimate of the tax you will owe at the end of the year. The 2026 rates run from 10% to 37%, but each rate applies only to the slice of income inside its bracket. The federal tax bracket calculator shows the slices.

Social Security and Medicare

Together these are called FICA taxes. Social Security takes 6.2% of your pay up to $184,500 in 2026; Medicare takes 1.45% of all pay, with an extra 0.9% on wages above $200,000 for single filers. Your employer pays a matching share on top of this, which does not reduce your check. These taxes are not affected by your W-4.

State and local income tax

9 states do not tax wages. In the rest, your employer also withholds state income tax, and a few cities and counties add their own. State rules differ a lot; pick your state in the paycheck calculator to see yours.

Post-tax deductions

After taxes, some employers subtract things like Roth 401(k) contributions, union dues, garnishments or supplemental insurance. These reduce your net pay but not your taxes.

Year-to-date (YTD) totals

Most stubs show a YTD column that adds up each line since January 1. It is useful for checking that your Social Security tax stops once you pass the wage base, and for filling out your tax return.

Check your own paycheck

Enter your pay in the paycheck calculator. If your real net pay is much lower than the estimate, look first at pre-tax benefits, health premiums and a W-4 that withholds extra. If it is much higher, check that your W-4 is up to date so you do not owe tax in April.

Frequently asked questions

What is the difference between gross pay and net pay?

Gross pay is what you earn before anything is taken out. Net pay, also called take-home pay, is what is left after taxes and deductions and is the amount deposited in your account.

Why does my federal tax withholding differ from what I owe?

Your employer withholds based on your Form W-4 as an estimate. When you file your return the actual tax is calculated, and the difference is refunded or paid.

What are FICA taxes?

FICA is Social Security (6.2% on wages up to $184,500 in 2026) plus Medicare (1.45% on all wages). Your employer pays a matching amount.

General information, not tax advice. Figures use 2026 IRS and SSA amounts and the same calculations as the calculators on this site.