Paycheck, taxes and retirement: how it works
In the US your take-home pay depends on federal income tax, FICA (Social Security and Medicare) and your state taxes. These calculators use the 2026 IRS figures so you know what actually lands in your account before you run the numbers.
From gross to net
Federal income tax is progressive, from 10% to 37% — only the income inside each bracket is taxed at that rate, and the standard deduction ($16,100 single / $32,200 married) comes off first. On top of that, FICA takes 6.2% for Social Security (up to a $184,500 wage base) and 1.45% for Medicare.
Retirement, mortgages and inflation
You can put up to $24,500 into a 401(k) and $7,500 into an IRA in 2026. The average 30-year mortgage rate sits around 6.5%. And since 2010 prices are up roughly 1.5× (CPI), so a dollar buys a lot less than it used to.
Key 2026 numbers
| Item | 2026 value (reference) |
|---|---|
| Federal income tax | 10% – 37% (progressive) |
| Standard deduction (single / married) | $16,100 / $32,200 |
| Social Security tax | 6.2% (up to $184,500) |
| Medicare tax | 1.45% (+0.9% over $200k) |
| 401(k) contribution limit | $24,500 |
| IRA contribution limit | $7,500 |
| Avg 30-yr mortgage rate | ~6.5% |
| Median household income | ~$80,000 |
These figures are estimates and change every year (IRS brackets, wage base, contribution limits). State taxes vary widely and aren't included here. This is not tax advice — use it as a quick estimate.