Understanding your full paycheck deductions in 2026
A complete gross-to-net calculation accounts for every mandatory withholding and voluntary deduction. The order matters: pre-tax deductions reduce your taxable income before taxes are calculated, lowering your total tax bill each period.
401(k) contributions reduce federal income tax but are still subject to Social Security and Medicare (FICA). The 2026 employee 401k limit is $23,500 ($31,000 if age 50+). Traditional 401k is pre-tax; Roth 401k is post-tax.
FSA and HSA contributions through payroll deduction (Section 125 cafeteria plan) reduce both federal income tax AND FICA taxes — saving you 7.65% more per dollar than a 401k. The 2026 FSA limit is $3,200; the HSA limit is $4,300 (self-only) or $8,550 (family).
For employer-side costs including FUTA, SUTA, and workers comp, see our Employer Tax Calculator. To compare 1099 contractor vs W-2 employee tax burden, use the 1099 vs W-2 Calculator.