A sample pay stub: $60,000 in California
Here is a bi-weekly paycheck for a single employee earning $60,000 a year in California with no benefits:
| Line | Amount | How it is calculated |
|---|---|---|
| Gross pay | $2,307.69 | Salary ÷ 26 pay periods |
| Federal income tax | −$193.08 | Based on your W-4 and the 2026 brackets |
| Social Security | −$143.08 | 6.2% of gross pay |
| Medicare | −$33.46 | 1.45% of gross pay |
| California income tax | −$63.06 | State brackets |
| CA SDI | −$30.00 | State disability insurance |
| Net pay | $1,845.02 | What reaches your bank account |
Mandatory taxes
- Federal income tax. Withheld according to the W-4 form you give your employer. It uses the progressive federal brackets after the standard deduction.
- Social Security (6.2%). Charged on wages up to $184,500 a year. Your employer pays another 6.2%.
- Medicare (1.45%). Charged on all wages, plus an extra 0.9% above $200,000 for single filers.
- State income tax. Withheld in 41 states and DC. Nine states do not tax wages.
- Local income tax. Some cities and counties (for example in Maryland, Ohio, Pennsylvania and New York City) add their own income tax.
- State payroll programs. California, New York, New Jersey, Washington and others withhold small amounts for disability or paid family leave insurance.
Pre-tax deductions: benefits that lower your taxes
- Traditional 401(k) or 403(b). Reduces federal and most state income tax, but not Social Security and Medicare.
- Health, dental and vision insurance. Premiums paid through a cafeteria (Section 125) plan usually reduce income tax and FICA.
- HSA and FSA. Contributions through payroll avoid income tax and, in most cases, FICA.
- Commuter benefits. Transit and parking benefits can be deducted before tax up to a monthly limit.
After-tax deductions
- Roth 401(k). Taxed now, tax-free in retirement.
- Wage garnishments. Court-ordered payments such as child support or unpaid debts.
- Union dues, charity and life insurance above the tax-free limit.
How to check your paycheck is right
- Compare your gross pay with your salary divided by your number of pay periods.
- Make sure the state withheld is the state where you live or work.
- Check that Social Security stops once your year-to-date wages pass the wage base.
- If too much or too little federal tax is withheld, update your W-4.
For your own numbers, use the paycheck calculator above: it applies the same rules to any salary, state and 401(k) rate.
Gross vs net pay per paycheck
The same salary produces very different paychecks depending on the state. Bi-weekly gross and net pay, single filer, no benefits:
Common paycheck surprises
- The first paycheck after a raise looks smaller than expected because the extra income is taxed at your marginal rate, not your average rate.
- Bonuses are often withheld at a flat 22% federal rate. The final tax is settled on your return.
- Open enrollment changes to health insurance or 401(k) contributions take effect in January and change every paycheck.
- A third paycheck month happens twice a year on a bi-weekly schedule, which is useful for budgeting.
Frequently asked questions
Why is my paycheck less than my salary divided by 26?
Because federal and state income tax, Social Security, Medicare and any benefits are withheld from your gross pay.
What percentage of my paycheck goes to taxes?
Usually between 15% and 30% for most workers, depending on income and state. On $60,000 in California it is about 20%.
Do 401(k) contributions reduce Social Security tax?
No. Traditional 401(k) contributions lower income tax but Social Security and Medicare still apply.
What is the difference between gross and net pay?
Gross pay is what you earn before deductions. Net pay is what you receive after all taxes and deductions.
Why was more tax taken from my bonus?
Employers usually withhold federal tax on bonuses at a flat 22%, which can be more than your normal withholding. Any difference is corrected when you file.
How do I reduce the tax taken from my paycheck?
Use pre-tax benefits such as a traditional 401(k), HSA or FSA, and make sure your W-4 reflects your situation.
Figures use 2026 IRS federal brackets, the standard deduction, Social Security and Medicare rates, and each state's income tax rules for a W-2 employee. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.