How the Calculator Works: Methodology and Sources

This page explains the logic behind the estimates so you can see exactly where the numbers come from.

The basic formula

Net pay = gross pay − pre-tax deductions − federal income tax withholding − Social Security tax − Medicare tax − post-tax deductions.

What’s included

• Federal income tax: Calculated using the 2026 standard deduction and marginal tax brackets for your filing status
• Social Security: 6.2% of wages up to the 2026 wage base
• Medicare: 1.45% of all wages, plus the 0.9% Additional Medicare Tax on wages above $200,000
• Pre-tax and post-tax deductions: Entered by you and applied in the correct order
• Overtime: Hours over 40 per week at 1.5 times the regular rate
• Bonuses: Federal withholding at the flat supplemental rate

What’s not included

• Texas state income tax, because Texas doesn’t have one
• Local or city income tax, because Texas cities and counties don’t charge one
• Tax credits, itemized deductions, or other items that affect your final return rather than your withholding

Why results may differ from your pay stub

Employers may use slightly different withholding methods, and benefits, garnishments, or extra W-4 withholding can change the final number. Treat the calculator as a close estimate, not a payroll record.

Sources we rely on

• Internal Revenue Service (IRS): tax brackets, standard deduction, Form W-4, Publication 15-T
• Social Security Administration (SSA): wage base and tax rates
• U.S. Department of Labor: overtime rules
• Texas Comptroller of Public Accounts: state tax information
• U.S. Census Bureau: income data