How Much Tax Is Really Taken Out of Your Paycheck?

Published June 2026 · 5 min read

You see the gross salary number on your offer letter — but what hits your bank account is always smaller. Here's exactly where your money goes, line by line, and why.

The 5 Deductions on Every Paycheck

1. Federal Income Tax — 10% to 37% depending on your bracket. Your W-4 allowances affect how much is withheld.
2. Social Security — 6.2% on the first $176,100 of wages (2026).
3. Medicare — 1.45% on all wages, plus 0.9% surtax above $200,000.
4. State Income Tax — 0% to 13.3%, varying by state.
5. Other Deductions — 401(k), health insurance, HSA/FSA, life insurance.

Real Example: $75,000 Salary in Colorado

Biweekly gross: $2,885. Federal tax: ~$340. Social Security: ~$179. Medicare: ~$42. Colorado state tax (4.4%): ~$127. 401(k) at 5%: ~$144. Take-home: ~$2,053 per paycheck — about 71% of gross. Use our Paycheck Calculator to see your exact numbers for your state and salary.