Free Payroll Tax Calculator (2026)
FICA employee and employer tax split. Calculate instantly — no signup required. Updated for 2026.
What Is a Payroll Tax Calculator?
A payroll tax calculator is a comprehensive FICA and payroll planning tool designed to calculate the total taxes deducted from your salary, including Federal Insurance Contributions Act (FICA) taxes, federal income tax, and state/local taxes. It also estimates the matching employer payroll taxes, illustrating the true "cost of employment" for a business owner.
For employees, payroll taxes represent the difference between your gross salary and your actual "take-home" net pay. For employers, payroll taxes represent additional labor costs that must be paid beyond the employee’s gross salary. Our payroll tax calculator provides a transparent breakdown of these deductions, helping both workers and business owners plan their budgets accurately.
How to Use This Payroll Tax Calculator
- Gross Salary: Enter your pre-tax salary.
- Pay Frequency: Select your paycheck cycle (weekly, bi-weekly, semi-monthly, or monthly).
- Filing Status & Deductions: Select filing status to estimate federal withholding.
The Payroll Tax Formula
The core FICA tax calculation is split as follows:
Employee FICA = (Salary × 6.2% [Social Security]) + (Salary × 1.45% [Medicare]) = Salary × 7.65%
The employer matches this exact 7.65% rate. Federal income tax withholding is estimated and subtracted to find the final net pay.
Step-by-Step Practical Example
Let’s calculate the payroll deductions for a bi-weekly paycheck on a $70,000 salary:
- Salary: $70,000 ($2,692.31 gross per pay period)
- FICA Rate: 7.65%
- Estimated Income Tax Withholding: $280 per pay cycle
Step 1: Calculate Employee FICA deductions
FICA = $2,692.31 × 7.65% = $205.96
Step 2: Compute take-home pay
Net Take-Home Pay = $2,692.31 (Gross) − $205.96 (FICA) − $280.00 (Income Tax) = $2,206.35
Key Takeaways
- Payroll taxes reduce gross pay to net take-home pay, driven by FICA (7.65%) and federal/state tax withholdings.
- Employers match FICA taxes, paying an additional 7.65% on top of gross employee wages.
Frequently Asked Questions
What is included in FICA payroll taxes?
FICA stands for the Federal Insurance Contributions Act. FICA payroll taxes are comprised of two parts: a 6.2% Social Security tax (which funds national retirement benefits) and a 1.45% Medicare tax (which funds health insurance for seniors), totaling a flat 7.65% deduction from employee wages.
Do employers pay payroll taxes?
Yes. Employers are legally required to match their employees’ FICA tax contributions, paying an additional 6.2% for Social Security and 1.45% for Medicare. Additionally, employers are responsible for paying Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA) on behalf of each worker, making the true cost of employment roughly 8% to 10% higher than the employee’s gross salary.
What is the Additional Medicare Tax?
The Additional Medicare Tax is an extra 0.9% payroll tax introduced under the Affordable Care Act that applies to high-income earners. It is assessed on individual earnings that exceed $200,000 (or $250,000 for married couples filing jointly). Employers must automatically withhold this tax once an employee’s wages exceed the threshold, though there is no employer matching requirement.
Are pre-tax benefits exempt from FICA taxes?
Most pre-tax deductions (such as contributions to a Traditional 401k or Traditional IRA) are exempt from *income taxes* but are still subject to FICA payroll taxes. However, contributions made to a Health Savings Account (HSA) or a Flexible Spending Account (FSA) through an approved employer Section 125 cafeteria plan are completely exempt from both income taxes and FICA taxes.
What is the difference between gross pay and net pay?
Gross pay represents the total amount of wages or salary earned by an employee before any deductions are made. Net pay (often called take-home pay) is the final amount of money deposited into the employee’s bank account after all FICA payroll taxes, federal/state income tax withholdings, health insurance premiums, and retirement contributions are deducted.