How we calculate

Every number on this site comes from the employer withholding instructions published for 2026. We do not average or round tax rates.

Federal

Federal income tax follows Worksheet 1A and the annual percentage-method tables for automated payroll systems in IRS Publication 15-T (2026). Social Security is 6.2% of wages up to the 2026 wage base of $184,500; Medicare is 1.45% of all wages, and Additional Medicare of 0.9% applies to wages above $200,000.

California

State income tax follows Method B (exact calculation) in the EDD’s 2026 California Employer’s Guide, DE 44: low-income exemption, estimated-deduction allowances, standard deduction, the 2026 annual tax-rate tables and the $168.30 credit per allowance. SDI is 1.3% of all wages.

New York

State and New York City income tax follow Method II (exact calculation) and Method III (top income) in publications NYS-50-T-NYS and NYS-50-T-NYC, revised January 2026. Paid Family Leave is 0.432% of wages up to $411.91 a year, as set by the Department of Financial Services; disability insurance is 0.5% up to $0.60 a week.

How we check it

Our calculation code is tested against the worked examples printed in these publications. Results match to the cent when a publication annualizes pay as we do, and within two cents where it uses per-period tables.

Sources

• IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
• Social Security Administration, 2026 fact sheet
• California EDD, 2026 California Employer’s Guide (DE 44)
• New York State withholding tables NYS-50-T-NYS (1/26)
• New York City withholding tables NYS-50-T-NYC (1/26)
• NY Department of Financial Services, Paid Family Leave 2026 rate decision

Found a difference with your payroll? Write to [email protected] with the inputs and we will check it.