US Payroll Tax Calculator (2026 Employer & Employee Withholding)
Payroll taxes in the United States are shared between employees and employers under federal and state statutory frameworks. Employees have Federal Income Tax (FIT), state/local income taxes, and their 7.65% FICA share withheld from paychecks. Simultaneously, employers must match the employee's 7.65% FICA contribution, pay Federal Unemployment Tax (FUTA 0.6% on the first $7,000), and pay State Unemployment Tax (SUTA) up to state wage ceilings. This calculator computes side-by-side breakdowns of gross pay, employee paycheck deductions, net take-home pay, and total employer payroll tax liabilities for the 2026 calendar year.
Payroll Tax Parameters (2026)
Employee Withholdings & Employer Match · FICA ($184,500 cap), FUTA & SUTA
Calculation Breakdown
Annualized gross compensation: $79,999.92
OASDI statutory employee withholding (capped at $184,500/yr)
Hospital Insurance (HI) statutory withholding
Estimated federal payroll withholding under IRS Pub 15-T
Net take-home pay deposited in employee's bank account
Mandatory employer matching payroll tax (IRC § 3111(a))
Mandatory employer matching payroll tax (IRC § 3111(b))
Max $42.00/yr per employee (0.6% on first $7,000 wages)
Assessed on state taxable wage base ($9,000)
Gross wage + all employer mandatory payroll taxes
•FICA Social Security taxable wage limit for 2026 is $184,500. Texas has 0% state personal income tax and no employee disability deduction. Employer SUTA wage base is $9,000.
•Workers' compensation insurance and healthcare benefits are calculated separately.
IRS Circular E & FICA Tax Rules
Employers must deposit both employee withholdings and employer matching contributions according to IRS semi-weekly or monthly deposit schedules. For the 2026 tax year, Social Security tax (6.2% employee + 6.2% employer) applies up to the statutory wage ceiling of $184,500. Medicare tax (1.45% employee + 1.45% employer) has no wage limit.
How Your US Payroll Taxes Were Calculated
Statutory employee and employer payroll tax schedules under IRS Publication 15 and Texas Department of Labor rules.
Calculate Employee FICA & Statutory Withholdings
$528.69Under the Federal Insurance Contributions Act (FICA), employers must withhold 6.2% Social Security (up to $184,500 statutory wage ceiling) and 1.45% Medicare from employee wages each pay period.
Determine Employee Net Take-Home Pay
$2,348.23Net take-home pay deposited directly into the employee's bank account after statutory tax withholdings and voluntary benefit contributions.
Compute Employer Mandatory Matching Taxes
$246.35Under federal law (IRC § 3111 and FUTA § 3301), employers must pay dollar-for-dollar matching FICA taxes plus state and federal unemployment insurance taxes out of company funds.
Total True Payroll Cost for Employer
$3,323.27Total cash outflow required by the company to fund this employee's paycheck for the biweekly cycle.
How this calculator works
How it works
- 01Gross Wages & Pay Period: Enter wage amount and frequency (weekly, bi-weekly, semi-monthly, or monthly) to compute pay period and annualized figures.
- 02Employee FICA Withholding: Deducts 6.2% Social Security up to the 2026 wage ceiling ($184,500) and 1.45% Medicare (plus 0.9% Additional Medicare Tax on wages over $200,000).
- 03Federal Income Tax (FIT): Estimates employee federal withholding based on annualized income and filing status deductions under IRS Publication 15-T.
- 04State Tax & SDI Deductions: Deducts applicable state income taxes and statutory employee disability insurance (such as California's uncapped 1.3% SDI).
- 05Employer Matching FICA: Computes mandatory matching 6.2% Social Security and 1.45% Medicare contributions paid directly by the company.
- 06Employer FUTA & SUTA: Calculates federal unemployment tax (0.6% on the first $7,000 = $42/yr max) and state unemployment insurance based on state-specific wage bases.
Tax rules that apply
- •FICA Sharing: The Federal Insurance Contributions Act mandates a 15.3% total tax on employee wages. Exactly half (7.65%) is withheld from the employee's paycheck, and the other half (7.65%) is paid directly by the employer as an excise tax.
- •Social Security Wage Base: For 2026, the statutory OASDI wage ceiling is $184,500. Once an employee's cumulative year-to-date wages exceed this limit, both employee and employer stop paying the 6.2% Social Security tax for the remainder of the calendar year.
- •Medicare Has No Ceiling: Unlike Social Security, the 1.45% Medicare tax applies to every dollar of earned compensation with no upper wage limit.
- •FUTA Credit Reduction: The standard federal unemployment tax rate is 6.0%, but employers in compliant states receive a maximum 5.4% credit for paying state unemployment taxes, reducing effective FUTA to 0.6% ($42.00 per employee annually).
Current Tax Rates
| Tax / Deduction | Rate | Notes |
|---|---|---|
| Employee Social Security (FICA) | 6.20% | Capped at $184,500 annual wages |
| Employee Medicare (FICA) | 1.45% | Uncapped; +0.9% surtax > $200k single |
| Employer Matching Social Security | 6.20% | Mandatory company matching contribution |
| Employer Matching Medicare | 1.45% | Mandatory company matching contribution |
| Federal Unemployment (FUTA) | 0.60% | Applied to first $7,000 of wages ($42 max) |
| State Unemployment (SUTA) | 1.0% – 6.5% | Varies by state wage base ($7k to $68.5k) & rating |
What this calculator assumes
- Reflects official 2026 IRS Publication 15 Circular E tables and statutory wage caps.
- Assumes employer is eligible for full 5.4% FUTA tax credit (effective FUTA 0.6%).
- SUTA calculations use statewide standard average new employer tax rates unless customized.
- Local occupational privilege taxes or city wage taxes (e.g. Philadelphia wage tax) are not included.
Where our numbers come from
These calculators are based on official government tax rates and rules. We link directly to the source so you can verify everything yourself.
IRS Publication 15 (Circular E) — Employer's Tax Guide (FICA & FUTA)
Internal Revenue Service — U.S. Department of the Treasury
IRS Revenue Procedure 2025-32 (2026 Inflation Adjustments)
Internal Revenue Service — U.S. Department of the Treasury
California FTB — Corporation and LLC Filing Requirements (Form 100 & 568)
California Franchise Tax Board
Frequently Asked Questions
What is the difference between employee payroll withholdings and employer payroll taxes?
Employee payroll withholdings (employee FICA of 7.65%, federal income tax, and state income tax) are deducted directly from the employee's gross earnings. The employer holds these funds in trust and remits them to tax authorities. Employer payroll taxes (employer matching FICA of 7.65%, FUTA of 0.6%, and state SUTA) are paid directly out of company funds above and beyond the worker's gross salary.
What is the 2026 Social Security wage cap and how does it affect payroll?
The 2026 Social Security taxable wage limit is $184,500 under IRS and Social Security Administration updates. Once an employee's cumulative year-to-date wages cross $184,500, the 6.2% withholding ceases for the rest of that year. For an employee earning $250,000, Social Security tax stops being withheld once $184,500 is reached, saving both the worker and employer $4,061.00 in taxes on the remaining $65,500 of compensation.
How does FUTA tax work and what is the maximum cost per employee?
Federal Unemployment Tax Act (FUTA) tax is paid exclusively by employers — it is never deducted from employee pay. The statutory rate is 6.0% on the first $7,000 of wages per worker. However, employers who pay state unemployment taxes on time receive a maximum 5.4% credit, making the effective FUTA rate 0.6%. This means the maximum annual FUTA cost per employee is exactly $42.00 ($7,000 × 0.006).
What is SUTA tax and why does each state have a different rate?
State Unemployment Tax Act (SUTA), also known as State Unemployment Insurance (SUI) or Reemployment Tax, funds state unemployment benefits. Each state establishes its own taxable wage base (ranging from $7,000 in California and Florida to $68,500 in Washington) and assigns each employer an 'experience rating' based on industry risk and how many former workers have claimed unemployment benefits. Rates typically range between 1.0% and 8.0%.
Which states require employee-paid disability or paid family leave withholding?
While most states do not deduct state disability from paychecks, several states mandate employee contributions: California (1.3% uncapped SDI/PFL), New Jersey (TDI and FLI), New York (NY SDI and PFL), Hawaii (TDI), Rhode Island (TDI), and Washington (WA PFML). These deductions appear on employee pay stubs alongside FICA and income tax withholdings.
When are employers required to deposit payroll taxes with the IRS?
Employers deposit federal payroll taxes (withheld income tax + employee FICA + employer FICA) via the Electronic Federal Tax Payment System (EFTPS) according to one of two deposit schedules: Monthly or Semi-Weekly. If your total tax liability during the lookback period was $50,000 or less, you are a monthly depositor (due by the 15th of the following month). If liability exceeded $50,000, you are a semi-weekly depositor. If you accumulate $100,000 or more on any day, you must deposit by the next business day.
