How to read your pay stub
- Methodology & sources
- Runs in your browser
Your pay stub shows how your gross pay becomes the deposit in your bank account. Here is what each section means, with a worked 2026 example.
Earnings
Regular hours, overtime, bonuses and commissions for the pay period, with year-to-date (YTD) totals. Gross pay is the total before any deduction.
Pre-tax deductions
Traditional 401(k) contributions lower your federal (and most states’) taxable wages, but not Social Security and Medicare. Health, dental and vision premiums and HSA contributions through a cafeteria plan lower both.
Taxes withheld
- Federal income tax: based on your W-4 and the 2026 brackets.
- Social Security (OASDI): 6.2% of wages up to $184,500 in 2026.
- Medicare: 1.45%, plus 0.9% on wages over $200,000.
- State and local income tax: depends on where you live and work; nine states have none.
Example: $75,000 in North Carolina with a 5% 401(k)
| Year | Month | Paycheck | |
|---|---|---|---|
| Gross pay | $75,000.00 | $6,250.00 | |
| 401(k) contribution | − $3,750.00 | − $312.50 | |
| Federal income tax | − $6,845.00 | − $570.42 | |
| Social Security (6.2%) | − $4,650.00 | − $387.50 | |
| Medicare (1.45%) | − $1,087.50 | − $90.63 | |
| North Carolina income tax | − $2,334.15 | − $194.51 | |
| Take-home pay | $56,333.35 | $4,694.45 |
Paid every two weeks, that is $2,166.67 per paycheck.
Net pay
What lands in your account after all taxes and deductions. If it changes unexpectedly, compare the YTD columns with the previous stub: a new deduction, a W-4 change or crossing the Social Security wage base are the usual reasons.
Check your paycheck
Use the paycheck calculator with your state and filing status, and see the 2026 tax brackets for how your federal tax is worked out.