How to Read Your W-2 Form in 2026 - Every Box Explained
Your W-2 form shows total wages and withholding for the year. Box 1 is often lower than your actual salary because pre-tax deductions - 401(k) contributions, health insurance premiums, FSA contributions - reduce it. Box 2 shows federal income tax withheld. Boxes 15-17 show state wages and withholding.
Key Findings
- Box 1 is taxable wages after pre-tax deductions.
- Box 3 and Box 5 can stay closer to gross salary.
- Box 12 codes explain retirement and benefit amounts.
| Box | Label | Meaning |
|---|---|---|
| 1 | Wages, tips | Taxable wages after pre-tax deductions |
| 2 | Federal income tax withheld | What your employer sent to the IRS |
| 3 | Social Security wages | Usually closer to gross pay |
| 4 | Social Security tax withheld | 6.2% of Box 3 up to the wage base |
| 5 | Medicare wages | Usually the same as gross pay |
| 6 | Medicare tax withheld | 1.45% of Box 5 plus any additional Medicare tax |
| 12 | Various codes | Retirement, health, and other payroll items |
| 16 | State wages | May differ from Box 1 |
| 17 | State income tax withheld | What employer sent to the state |
Example: an $80,000 salary with $5,000 of pre-tax deductions could show Box 1 near $75,000.
Check your withholding with the calculator →
W-2 reader questions
Why is my W-2 Box 1 less than my salary?
Box 1 shows taxable wages, which are reduced by pre-tax deductions. Common deductions that lower Box 1 include traditional 401(k) contributions, health insurance premiums paid pre-tax through your employer, FSA and HSA contributions, and transit or parking benefits.
What is the difference between Box 1 and Box 3 on my W-2?
Box 1 is reduced by 401(k) and most pre-tax benefits. Box 3 Social Security wages are not reduced by 401(k) contributions, so you still pay Social Security tax on that income.
What does it mean if Box 2 is higher than expected?
Box 2 shows federal income tax withheld. If it seems high, check your W-4 settings - you may have requested extra withholding, had a large bonus withheld, or used a filing status that withholds more than your final tax liability.
How do I check if my employer withheld the correct amount?
Compare Box 2 to your estimated federal tax liability using the calculator at /w4-withholding-calculator/. If they are close, your withholding is likely aligned with your annual tax estimate.
When should I receive my W-2?
Employers must send W-2 forms by January 31 each year for the prior tax year. If you have not received it by mid-February, contact your employer's payroll department.
What is Box 12 on my W-2?
Box 12 contains one or more codes representing various types of compensation and deductions. Common codes include D for traditional 401(k) contributions, W for employer HSA contributions, and DD for employer-paid health insurance premiums.