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Paycheck deductions explained
That gap between your salary and your paycheck is made of several separate deductions. Here is what each line on your pay stub actually means in 2026.
Federal income tax withholding
An estimate of the federal income tax you'll owe for the year, spread across your paychecks. It depends on your salary, filing status and the information on your Form W-4. Because it uses the progressive 2026 brackets, higher earners have a higher share withheld.
Social Security (FICA)
A flat 6.2% of your wages, up to the 2026 wage base of $184,500. Earnings above that are not subject to Social Security tax. Employers pay a matching 6.2%.
Medicare (FICA)
1.45% of all your wages with no cap. High earners pay an Additional Medicare Tax of 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).
State (and sometimes local) income tax
Depends entirely on where you live and work. Some states have no wage income tax at all; others use progressive brackets or a flat rate. A few cities add their own local income tax on top.
Pre-tax deductions
Amounts taken out before income tax is calculated, which lowers your taxable income:
- Traditional 401(k) / 403(b): retirement savings; reduces income tax but not FICA.
- HSA / FSA: health and flexible spending accounts.
- Health insurance premiums: often deducted pre-tax through your employer.
Post-tax deductions
Taken out after taxes — for example Roth 401(k) contributions, wage garnishments, or union dues. These don't lower your taxable income.
General information for 2026, not tax advice.