Employment Tax Calculator
US, 2026 tax year · figures follow that year's rules
Employment tax calculator works out Take-home pay per period and Gross per period from How pay is entered, Gross pay and Hourly rate. The default figures on this page give total cost to the employer of 64,632; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
7 steps
- Annual gross = 60000 over 1 pay periods.
- Annualised taxable income = 60000 - 0 pre-tax - 16100 standard deduction = 43900
- Federal tax on that = 5020; per period 5020
- Social Security 6.2% on wages up to 184500 = 3720
- Medicare 1.45% with no cap = 870
- Take-home per period = 50390
- Employer taxes = 3720 Social Security + 870 Medicare + 42 FUTA + 0 state unemployment = 4632; total cost 64632.
Deduction breakdowntable
| item | amount |
|---|---|
| Gross wages | 60,000 |
| Employer Social Security | 3,720 |
| Employer Medicare | 870 |
| Employer FUTA | 42 |
| Total cost to the employer | 64,632 |
Pay stubtable
| section | item | current | yearToDate |
|---|---|---|---|
| Earnings | Regular pay | 60,000 | 60,000 |
| Earnings | Gross pay | 60,000 | 60,000 |
| Taxes withheld | Federal income tax | 5,020 | 5,020 |
| Taxes withheld | Social Security | 3,720 | 3,720 |
| Taxes withheld | Medicare | 870 | 870 |
| Net pay | Net pay | 50,390 | 50,390 |
Its 13 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
11 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the employment tax calculator calculates
Estimates net take-home pay from gross wages after federal income tax withholding, Social Security, Medicare, state tax and pre-tax deductions.
How to use this employment tax calculator
Enter How pay is entered, Gross pay, Hourly rate and Regular hours in the pay period. Take-home pay per period updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Take-home pay per period, Gross per period and Annual gross.
The method follows IRS Revenue Procedure 2024-40, inflation-adjusted items for tax year 2025, IRS Revenue Procedure 2025-32, modifying Rev. Proc. 2024-40 for the One Big Beautiful Bill ACT (P.L. 119-21), IRS, Federal income tax rates and brackets, Social Security Administration, Contribution and Benefit Base and IRS Publication 15-T, Federal Income Tax Withholding Methods.
What you can compare
Change one input at a time to see how it affects Take-home pay per period, Gross per period and Annual gross. The inputs you can vary are How pay is entered, Gross pay, Hourly rate, Regular hours in the pay period, Overtime hours in the pay period and Overtime rate multiple.
Understanding Take-home pay per period, Gross per period and Annual gross
An estimate. Actual withholding depends on your employer's payroll system, your Form W-4 entries, and state and local rules. It is not a substitute for your pay stub or the IRS Tax Withholding Estimator.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
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Frequently asked questions
What income puts you in the 22% tax bracket?
Estimates net take-home pay from gross wages after federal income tax withholding, Social Security, Medicare, state tax and pre-tax deductions. On this page it is computed from How pay is entered, Gross pay and Hourly rate and shown as Take-home pay per period, Gross per period and Annual gross.
How to calculate what percentage of tax is taken out of a paycheck?
Estimates net take-home pay from gross wages after federal income tax withholding, Social Security, Medicare, state tax and pre-tax deductions. Open “How this is worked out” beside the result to see each step for your own figures.
How do you calculate what tax you pay?
It needs How pay is entered, Gross pay, Hourly rate, Regular hours in the pay period, Overtime hours in the pay period and Overtime rate multiple. Nothing else is required, and the figures stay in your browser.
What information do I need for the employment tax calculator?
You need How pay is entered, Gross pay, Hourly rate, Regular hours in the pay period, Overtime hours in the pay period, Overtime rate multiple, Pay frequency and The amount entered is the annual salary. The page opens with default figures that give total cost to the employer of 64,632, so you can see the scale before entering your own.
What does this employment tax calculator show?
It shows Take-home pay per period, Gross per period, Annual gross, Annual take-home, Federal income tax, Social Security, Medicare and Additional Medicare, with the working and any warnings for your entries.
Can I check how the employment tax calculator result was calculated?
Yes. The “How this is worked out” section shows the calculation steps, and the sources section identifies the references used for the method.