Methodology and sources

Updated for tax year 2026 (IRS Rev. Proc. 2025-32). Last reviewed August 24, 2026. This is an estimate of typical W-2 withholding, not tax-preparation software.

Changelog

Federal income tax (2026)

Brackets and standard deductions come from the IRS newsroom release on tax year 2026 inflation adjustments (including OBBBA) and Revenue Procedure 2025-32. Rates remain 10, 12, 22, 24, 32, 35, and 37 percent. Standard deduction: $16,100 single and married filing separately; $32,200 married filing jointly; $24,150 head of household.

We assume the standard deduction. We do not model itemizing, AMT, NIIT, or the Child Tax Credit.

Social Security and Medicare

Social Security (OASDI) employee rate 6.2% on wages up to the SSA 2026 contribution and benefit base of $184,500. Medicare 1.45% on all FICA wages. Additional Medicare Tax 0.9% above $200,000 (single / head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). Traditional 401(k) deferrals stay in the FICA base; cafeteria-plan health premiums come out.

State income tax

Rates, brackets, standard deductions, and personal exemptions are taken from the Tax Foundation “2026 State Income Tax Rates and Brackets” table (as of January 1 / February 11, 2026 compilation of state statutes). No-tax wage states: AK, FL, NV, NH, SD, TN, TX, WY, and WA (wages only). Washington’s capital-gains tax is not applied to W-2 pay.

Head of household uses each state’s single-style brackets with the listed HOH or single standard deduction. Married filing separately uses single brackets. Credits listed as personal exemptions are subtracted from tax; deduction-style exemptions reduce taxable income. Utah’s taxpayer credit is applied without its phaseout.

Known gaps (approximate states)

Primary sources