How ExactTakeHome Calculates Your Take-Home Pay

Overview

ExactTakeHome computes net take-home pay for W-2 employees across all 51 US jurisdictions. The calculator applies federal income tax withholding, FICA (Social Security and Medicare), and state income tax using source-backed 2026 tax data — then returns per-paycheck and annual net pay.

All tax rates, brackets, wage bases, and deduction amounts are loaded from ExactTakeHome's tax data files (derived from IRS, SSA, and state Department of Revenue publications). Nothing is hardcoded in the calculation layer.

CPA Review

Kevin Marshall, CPA

Kevin Marshall, CPA — Arizona License #15690

Certain federal payroll withholding methodology and select state tax computations were reviewed by Kevin Marshall, CPA (Arizona License #15690). This review covers calculations under IRS Publication 15-T and the specific state frameworks evaluated. It does not constitute a comprehensive audit, certification, or opinion regarding the entire application.

License verification: Arizona State Board of Accountancy (License #15690).

Resolved CPA Review Findings

• Utah nonrefundable credit: Utah's nonrefundable tax credit for eligible Social Security and retirement income is implemented per statute. It reduces tax owed but does not generate a refund beyond liability — this is correct statutory behaviour.
• Head of household withholding: IRS Pub 15-T withholding computation amounts for head of household differ from the annual standard deduction on a tax return. This is intentional IRS payroll withholding design, not a calculation error.

Federal Income Tax

Source: Internal Revenue Service (IRS). Federal withholding uses IRS Publication 15-T percentage method tables for the selected filing status and pay frequency.

2026 Tax Brackets (Withholding Tables)

Withholding Formula Adjustment Amount (IRS Pub 15-T)

These are the IRS Pub 15-T withholding computation amounts used to approximate annual tax liability in paycheck withholding calculations. They differ intentionally from the annual standard deduction amounts on your tax return ($15,000 single / $30,000 married filing jointly in 2026).

• Single: $8,600
• Married filing jointly: $12,900
• Head of household: $8,600

The calculator uses the standard deduction by default. Itemized deductions are not currently supported in the default estimate.

FICA Taxes

Source: Social Security Administration (SSA) and IRS payroll tax guidance.

• Social Security: 6.20% employee rate on wages up to $184,500 (2026 wage base)
• Medicare: 1.45% on all covered wages
• Additional Medicare Tax: 0.90% on wages above $200,000 (single) / $250,000 (married filing jointly)

ExactTakeHome models W-2 employee withholding. Self-employment tax (SECA) is not computed on standard paycheck calculator pages.

State Income Tax — All 51 Jurisdictions

State income tax methods vary: flat-rate states apply a single percentage (sometimes after exemptions), while progressive states use bracket schedules. State standard deductions and credits are applied when present in the 2026 withholding data for each jurisdiction.

Where applicable, state disability insurance (SDI), state unemployment insurance (SUI), or temporary disability insurance (TDI) employee withholding is also included in the take-home calculation. States with employee-side SDI/TDI include California (1.3%), New Jersey, New York, Rhode Island, Washington, and Hawaii.

Detailed bracket schedules for every state are available on each state's calculator page. Data sources: each state's Department of Revenue or Taxation (see source references).

States requiring additional verification (2026):
The following states have had recent legislative changes to income tax rates. ExactTakeHome monitors these jurisdictions for enacted changes and updates within 48 hours of an effective date:

• West Virginia — retroactive rate reduction enacted 2025
• South Carolina — 2026 employer withholding formula WH-1603F
• Mississippi — stepped-down rate schedule in effect
• Utah — reduced flat rate effective 2026
• Montana — reduced top marginal rate effective 2026

What We Don't Include

• Local taxes (city, county, district) — vary by municipality; a city selector is not yet available on all pages. See our guides for cities with notable local income taxes: NYC, Philadelphia, Cleveland, and 7 more.
• State Disability Insurance (CA SDI, NJ TDI, etc.) — employer-side; will be added in a future update
• Employer contributions (401k match, FICA employer share)
• Self-employment tax (SECA)
• Alternative Minimum Tax (AMT)
• Investment income (capital gains, dividends)

Data Freshness

Tax data is reviewed quarterly. When state or federal legislation is enacted that affects rates or brackets, we update within 48 hours of the effective date.

Last full audit: 2026-06-20

Assumptions

• Single W-2 job (unless filing status or inputs are changed)
• Standard deduction (federal and state where applicable)
• No pre-tax deductions unless entered by the user
• No AMT, investment income, or side income
• Filing status as selected by the user (default: single)