Complete Resource

Payroll Taxes in 2026: Rates, Calculators & How It Works

Everything employers and employees need to know about payroll taxes — FICA, federal withholding, state taxes, and the calculators to get every number right.

Payroll Tax Calculators

Calculate exact payroll taxes for any pay period, state, or employment type.

Payroll Tax CalculatorFederal + all 50 states, any pay period Free Payroll CalculatorFull gross-to-net with all deductions Employer Tax CalculatorEmployer FICA, FUTA, SUTA costs FUTA Tax CalculatorFederal unemployment tax per employee Take-Home Pay CalculatorNet pay after all withholding Gross Pay CalculatorBack-calculate gross from net pay Net to Gross (Gross-Up)Employer-paid tax gross-up Payroll Hours CalculatorConvert hours worked to gross pay Payroll Cost CalculatorTotal cost per employee including taxes True Employee CostFull loaded cost of one employee

Payroll Taxes by State

State income tax rates vary from 0% to 13.3%. Choose your state for exact 2026 calculations.

California1%–13.3% + SDI New York4%–10.9% + NYC surcharge TexasNo state income tax FloridaNo state income tax Illinois4.95% flat rate WashingtonNo state income tax Pennsylvania3.07% flat rate Ohio2.765%–3.99%All 50 States →Full comparison table

Payroll Tax Guides

In-depth articles covering how payroll taxes work, what employers owe, and how to stay compliant.

How to Calculate Payroll TaxesStep-by-step from gross to net pay Employer Payroll Taxes GuideAll taxes employers owe on wages True Cost of an EmployeeLoaded cost beyond the salary Gross vs Net Pay ExplainedWhat each number means

What Are Payroll Taxes?

Payroll taxes are taxes withheld from an employee's wages and remitted to the government — plus additional taxes the employer pays on top of wages. They fund Social Security, Medicare, and unemployment insurance.

6.2%Social Security (employee)

1.45%Medicare (employee)

$176,100SS wage base 2026

10–37%Federal income tax brackets

The 4 Types of Payroll Taxes

1. Federal Income Tax Withholding

Withheld based on the employee's W-4 filing status and allowances, using IRS Publication 15-T bracket tables. Rates range from 10% to 37%. This is not flat — it depends on the employee's taxable wages per pay period and their W-4 elections.

2. FICA Taxes (Social Security + Medicare)

Every employee pays 6.2% Social Security on wages up to $176,100 and 1.45% Medicare on all wages. Employers pay an equal 7.65% match. High earners pay an additional 0.9% Medicare on wages above $200,000 (single filers).

3. Federal Unemployment Tax (FUTA)

Employers-only pay 6.0% on the first $7,000 per employee per year. Most employers receive a 5.4% credit for state unemployment taxes paid on time, resulting in an effective FUTA rate of 0.6% — or $42 per employee per year.

4. State Income Tax Withholding

41 states plus DC impose state income tax. Rates range from 2.9% flat (Colorado) to 13.3% top marginal (California). Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

How to Calculate Payroll Taxes (Step by Step)

Step 1: Determine gross wages for the pay period
Step 2: Subtract pre-tax deductions (401k, HSA, health insurance premiums)
Step 3: Calculate FICA — 6.2% SS (up to wage base) + 1.45% Medicare on adjusted wages
Step 4: Calculate federal income tax withholding using IRS Pub 15-T tables
Step 5: Apply state income tax withholding per state tables
Step 6: Net pay = Gross wages − all withholding − post-tax deductions

Use the payroll tax calculator to get exact numbers instantly for any employee, pay period, and state.

Employer vs Employee Payroll Tax Split

Employees pay income tax withholding + 7.65% employee FICA. Employers pay a matching 7.65% employer FICA + FUTA (0.6% on the first $7,000) + state unemployment insurance (SUTA). Total employer payroll tax burden is typically 10–14% above gross wages depending on the state.

Frequently Asked Questions

What is the payroll tax rate for 2026?

Employees pay 6.2% Social Security on wages up to $176,100, plus 1.45% Medicare on all wages. Federal income tax withholding ranges from 10% to 37% based on IRS Publication 15-T. Employers match employee FICA at 7.65% and also pay FUTA at 0.6% on the first $7,000 per employee per year.

Do self-employed people pay payroll taxes?

Yes. Self-employed individuals pay self-employment tax at 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment income up to the $176,100 wage base, plus 2.9% Medicare on amounts above. Half of SE tax is deductible as a business expense.

Which states have no state income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. However, these states may offset with higher property or sales taxes.

When must employers deposit payroll taxes?

Monthly depositors (lookback period liability under $50,000) deposit by the 15th of the following month. Semi-weekly depositors (liability $50,000+) deposit Wednesday or Friday. Any single deposit exceeding $100,000 requires next-day deposit.

What is the difference between payroll tax and income tax?

Income tax withholding is an advance payment of the employee's annual tax liability — the amount varies by W-4 elections and income level. Payroll taxes (FICA) are flat-rate taxes funding Social Security and Medicare — both employer and employee pay them independently of income tax withholding.