Frequently Asked Questions
Everything you need to know about FICA, tax brackets, state deductions, and paycheck splits.
FICA stands for the Federal Insurance Contributions Act. It's a federal tax deducted from your paycheck to fund Social Security and Medicare. In 2026, the Social Security tax is 6.2% on earnings up to $184,500, and the Medicare tax is 1.45% on all earnings. Earnings above $200,000 ($250,000 for married) face an extra 0.9% Medicare surtax.
Federal income tax is progressive, meaning your income is divided into brackets, and higher portions of your income are taxed at higher rates. For example, in 2026, the first $12,400 of taxable income for single filers is taxed at 10%, the next portion up to $50,400 is taxed at 12%, and so on. The effective tax rate is the average rate you pay overall.
The standard deduction reduces your taxable income. For 2026, the standard deduction is $16,100 for Single filers, $32,200 for Married Filing Jointly, and $24,150 for Head of Household.
Pre-tax deductions (like 401k or HSA contributions) are taken out of your gross pay before income taxes are calculated, which lowers your taxable income and reduces the taxes you owe. Post-tax deductions are taken out after taxes have been calculated and do not reduce your tax liability.
No. Texas, Florida, Alaska, Nevada, South Dakota, Tennessee, Washington, and Wyoming have no state wage income tax. New Hampshire also has no wage tax (though it historically taxed interest and dividend income, which is currently phasing out).