You work 40 hours, get your paycheck, and a chunk is already gone. Federal tax, FICA, state tax, benefits — it adds up fast. Here's exactly where each dollar goes and how to make sure you're not overpaying.
What Is FICA and How Much Comes Out?
FICA stands for the Federal Insurance Contributions Act. It funds Social Security and Medicare. From every paycheck, your employer deducts **6.
2% for Social Security** (up to the wage base of $176,100 in 2026) and **1. 45% for Medicare** (uncapped). Your employer matches both.
If you earn over $200,000 (single) or $250,000 (MFJ), an additional **0. 9% Medicare surtax** kicks in.
The Social Security wage base means once you've earned $176,100 in a year, the 6.2% deduction stops for the rest of the year. Medicare keeps going on every dollar. High earners see the SS deduction disappear mid-year while Medicare continues.
How Federal Income Tax Withholding Works
Your employer uses the information on your W-4 form to determine how much federal income tax to withhold from each paycheck. The IRS withholding tables apply the same progressive brackets used for your annual return — but prorated per pay period. If you withhold too little, you may owe at tax time plus penalties.
Too much, and you're giving the IRS an interest-free loan.
| Pay Frequency | Paychecks/Year | Example Period |
|---|---|---|
| Weekly (52) | 52 | Every Friday |
| Bi-Weekly (26) | 26 | Every other Friday |
| Semi-Monthly (24) | 24 | 1st and 15th |
| Monthly (12) | 12 | 1st of month |
Which States Have No Income Tax?
Eight states have no individual income tax: **Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming**. New Hampshire has no tax on earned wages. Living in one of these states means the state tax line on your paycheck is $0.
In contrast, states like California (top rate **9. 3%** effective), Oregon (**9%**), and Minnesota (**7. 85%**) take a significant bite.
See Exactly Where Your Next Paycheck Goes
Use our free Paycheck Calculator — supports hourly and salary, all pay frequencies, and all 50 states. See your per-paycheck breakdown with an interactive chart.