Free Payroll Calculator to Replace ADP

Federal income tax in the United States uses a progressive bracket system where different portions of your taxable income are taxed at increasing rates. Understanding these brackets is essential for accurate payroll calculations. Here are the 2026 federal income tax brackets for each filing status.

Federal income tax calculation starts with your gross annual income. From this, the standard deduction is subtracted to arrive at taxable income. For 2026, the standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. If you claim additional allowances or dependents, each one reduces your taxable income by approximately $2,300.

Once taxable income is determined, the progressive bracket system applies. Only the portion of income within each bracket is taxed at that bracket's rate. For example, a single filer earning $60,000 in taxable income would pay 10% on the first $11,925, then 12% on income from $11,926 to $48,475, and finally 22% on income from $48,476 to $60,000. The total federal tax is the sum of taxes from each bracket.

This is an important distinction that many people misunderstand. Moving into a higher tax bracket does not mean all of your income is taxed at the higher rate. Only the amount above the bracket threshold is taxed at the new rate. Your effective tax rate, which is the total tax divided by total income, will always be lower than your marginal bracket rate.

For payroll purposes, the annual tax liability is divided by the number of pay periods to determine how much federal income tax is withheld from each paycheck. If you are paid biweekly, your annual tax is divided by 26. If monthly, it is divided by 12.

Social Security and Medicare taxes are collectively known as FICA taxes (Federal Insurance Contributions Act). Unlike federal income tax, these taxes are applied at flat rates without a standard deduction or bracket system.

The Social Security tax rate for employees is 6.2% of gross wages, applied to all earnings up to the Social Security wage base of $176,100 for 2026. Any earnings above this threshold are not subject to Social Security tax. Your employer pays a matching 6.2%, bringing the total contribution to 12.4%.

Medicare tax is 1.45% of all gross wages with no wage base limit. Unlike Social Security, there is no cap on Medicare-taxable earnings. Additionally, an extra 0.9% Medicare surtax applies to earnings exceeding $200,000 for single filers or $250,000 for married filing jointly. This additional tax is only paid by the employee and is not matched by the employer.

Self-employed individuals are responsible for both the employee and employer portions of FICA, paying 12.4% for Social Security and 2.9% for Medicare, for a combined self-employment tax rate of 15.3%. They can deduct the employer-equivalent portion when calculating adjusted gross income.

State income tax varies significantly across the United States. Nine states impose no state income tax at all, giving residents of those states a meaningful boost in take-home pay. On the other end, states like California, Hawaii, and New Jersey have top marginal rates exceeding 10%, which can substantially reduce net pay for high earners.

This calculator uses simplified flat-rate approximations for each state to provide a reasonable estimate. In reality, most states with income taxes use progressive bracket systems similar to the federal system. Some states use a flat rate, meaning all taxable income is taxed at the same percentage regardless of amount. Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, New Hampshire, North Carolina, Pennsylvania, and Utah all use flat-rate systems.

For the most precise state tax calculation, consult your specific state's department of revenue or a licensed tax professional. The estimates provided here are based on effective rates that are reasonable for median income levels in each state and should give you a good approximation of your take-home pay.

Local income taxes can also apply in certain cities and municipalities. Notable examples include New York City, which adds its own income tax on top of New York State tax, and various cities in Ohio and Pennsylvania that impose local earned income taxes. These local taxes are not included in this calculator.

Pay frequency determines how often you receive a paycheck and affects the size of each payment, though it does not change your total annual compensation. The four most common pay frequencies in the United States are weekly, biweekly, semi-monthly, and monthly.

Weekly pay results in 52 paychecks per year and is common in industries like construction, manufacturing, and retail. Each paycheck is smaller, but employees receive pay more frequently, which can help with budgeting short-term expenses.

Biweekly pay, which is every two weeks, results in 26 paychecks per year. This is the most common pay frequency in the United States. Biweekly pay can sometimes result in three paychecks in a single month, which occurs twice per year.

Semi-monthly pay, on the 1st and 15th of each month for example, results in exactly 24 paychecks per year. Each paycheck is slightly larger than biweekly, and pay dates are always the same calendar dates each month.

Monthly pay results in 12 paychecks per year and is more common for salaried professionals, especially in corporate settings. While each paycheck is the largest, monthly-paid employees must budget for an entire month between payments.

The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees overtime at a rate of 1.5 times their regular hourly rate for all hours worked beyond 40 in a single workweek. This is commonly referred to as "time and a half." Exempt employees, typically salaried workers in executive, administrative, or professional roles earning above a salary threshold, are generally not entitled to overtime.

When overtime is factored into payroll, it increases both your gross pay and your tax withholding. Because overtime earnings push your annualized income higher, the withholding tables may apply a higher marginal tax rate to the overtime portion. This can make it seem like overtime is "taxed more," but in reality, all income is taxed at the same progressive rates when you file your annual return.

Some states have additional overtime requirements. California, for example, requires daily overtime pay for hours worked beyond 8 in a single day, even if total weekly hours are under 40. This calculator uses the standard federal overtime rate of 1.5 times regular pay for all overtime hours.

Use the overtime mode in this calculator to see exactly how overtime hours affect your gross pay, tax withholding, and net take-home pay for a given week. This can help you decide whether overtime is worth the extra effort after taxes.

Pre-tax deductions are amounts taken from your gross pay before federal and state income taxes are calculated. Common pre-tax deductions include 401(k) or 403(b) retirement contributions, Health Savings Account (HSA) contributions, Flexible Spending Account (FSA) contributions, and employer-sponsored health insurance premiums.

These deductions lower your taxable income, which means you pay less in income taxes. For example, if you earn $75,000 and contribute $6,000 to a 401(k), your taxable income for federal and state income tax purposes is reduced to $69,000. At a 22% marginal tax rate, this saves you $1,320 in federal income tax alone.

Note that most pre-tax deductions reduce only income tax, not FICA taxes. Social Security and Medicare taxes are generally calculated on gross pay before pre-tax deductions are applied, with some exceptions for certain employer-sponsored benefit plans. The calculator accounts for this distinction when computing your payroll breakdown.

Maximizing pre-tax deductions is one of the most effective ways to increase your take-home pay while simultaneously building retirement savings and reducing your current tax liability. For 2026, the 401(k) contribution limit is $23,500, with an additional $7,500 catch-up contribution for employees age 50 and older.

This payroll calculator was built as a free, no-signup alternative to tools like the ADP paycheck calculator. It uses 2026 federal income tax brackets, current Social Security and Medicare rates, and simplified state income tax rates for all 50 US states plus the District of Columbia.

The calculator supports three modes. Salary mode lets you enter an annual gross salary. Hourly mode calculates based on your hourly rate and hours per week. Overtime mode adds time-and-a-half calculations for hours beyond 40 per week. All modes provide a complete breakdown of every deduction and your resulting net pay.

State tax rates used in this calculator are effective rate approximations. Actual state taxes depend on your state's specific brackets, deductions, and credits, which can vary significantly. For the most accurate state tax calculation, refer to your state's department of revenue website or consult a tax professional.

All calculations happen locally in your browser. No data is sent to any server, no cookies are set, and no personal information is collected or stored. This tool is provided free of charge for informational and educational purposes only and should not be considered tax advice.