Paycheck Guide · Pay Stub · 2026
Understanding Your Pay Stub: Every Deduction Explained (2026)
Last updated:
Your pay stub shows gross pay, every deduction, and your final net take-home. Knowing what each line means helps you spot errors and make better financial decisions.
Pay stub line by line
| Line item | What it is | Who sets it |
|---|---|---|
| Gross pay | Total before deductions | Your salary / hourly rate |
| Federal income tax | IRS withholding per W-4 | IRS Pub 15-T |
| Social Security | 6.2% up to wage base | FICA |
| Medicare | 1.45% of wages | FICA |
| State income tax | Varies by state | State DOR |
| 401(k) pre-tax | Your contribution | Your election |
| Health insurance | Pre-tax premium when eligible | Your plan |
| Net pay | Take-home | All above subtracted |
Sample pay stub for $75,000 in California
| Line item | Per biweekly paycheck | Annual |
|---|---|---|
| Gross pay | $2,885 | $75,000 |
| Federal tax | $295 | $7,670 |
| Social Security | $179 | $4,650 |
| Medicare | $42 | $1,088 |
| CA state tax | $161 | $4,195 |
| Net pay | $2,208 | $57,397 |
Engine-computed example assumes a $75,000 salary, California, single filer, biweekly pay, standard W-4, and no pre-tax deductions.
Compare your pay stub with a personalized estimate.
Estimate your net pay →What a pay stub documents
A pay stub (or earnings statement) shows gross wages, each tax and deduction line, and net pay for a single pay period. It also displays year-to-date totals for each category — essential for verifying withholding progress through the year.
Gross pay section
Gross includes regular wages, overtime, bonuses, and taxable benefits for the period. Compare gross to your offer letter or hourly rate × hours to verify payroll calculated earnings correctly.
Federal income tax line
Federal withholding follows IRS Publication 15-T based on taxable wages, filing status, and W-4 entries. The federal line is separate from FICA and state lines. Unexpected federal amounts often trace to W-4 changes or supplemental wage payments.
FICA lines
Social Security is withheld at 6.2% of gross up to the annual wage base. Medicare is 1.45% on all wages. These appear as separate lines on most stubs. Additional Medicare tax may appear once wages exceed IRS thresholds.
State and local withholding
Progressive states show state income tax withholding; flat-tax states show a flat structure; no-income-tax states show no state line. City wage tax appears as a separate local line in New York City, Philadelphia, and other jurisdictions with local wage taxes.
Pre-tax vs post-tax deductions
Pre-tax deductions — 401(k), HSA, health insurance — reduce taxable wages before tax lines calculate. Post-tax deductions — Roth 401(k), garnishments — reduce net pay after taxes. See health insurance pre-tax savings and 401(k) contribution tax impact.
Net pay and direct deposit
Net pay equals gross minus all taxes and deductions. Verify the direct deposit amount matches the net line. Discrepancies may indicate split deposits across accounts or payroll correction entries.
Year-to-date reconciliation
YTD columns help verify you are on track for expected annual withholding. Compare YTD federal withholding to projected annual liability — large gaps suggest W-4 review. See W-4 withholding guide.
Related tools
How to read your pay stub, paycheck deductions explained, and the paycheck calculator help match stub lines to engine-computed estimates.
Frequently Asked Questions
Why does my net pay change without a raise?
Mid-year W-4 updates, benefit election changes, hitting the Social Security wage base, bonus payments, or pay frequency quirks can change per-check net without a salary change.
Should stub taxes match the calculator exactly?
Small differences from payroll rounding, employer-specific benefit coding, or state form elections are common. Large persistent gaps warrant payroll review and W-4 verification.
Employer identification on stubs
Stubs typically show employer EIN, pay period dates, and check or deposit number. Use pay period dates to verify proration on partial periods during onboarding or termination.
Leave balances and accruals
Some stubs display PTO accrual balances — informational only and not tax-related. Accruals do not affect withholding calculations on the current check.
Frequently Asked Questions
Why is my take-home less than I expected?
Multiple deductions stack: federal withholding, FICA, state withholding, benefit premiums, retirement contributions, and any local or post-tax deductions can all reduce net pay.
What is YTD on a pay stub?
YTD means year-to-date. It is the cumulative total for a pay-stub line since the start of the calendar year.
Can my employer make deductions without notice?
Generally no. Many payroll deductions require authorization or a legal basis. Ask payroll for the deduction code and review applicable federal, state, and employment documents.
How do I check if my tax withholding is correct?
Use ExactTakeHome to compare your gross pay, filing status, state, pay frequency, and W-4 choices against the withholding shown on your pay stub.
Figures and methods are based on official-source data encoded in the calculator. Not tax advice. Review the methodology and consult a qualified professional for your situation.
Data sources: IRS Publication 15-T (2026) · Social Security Administration (wage base: $184,500)
Last verified: by ExactTakeHome Team
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