Hourly Paycheck Calculator
Calculate your take-home pay from hourly wages with 2026 federal tax withholding, FICA, overtime, and deductions. See your net pay by pay period.
Tax Settings (2026)
Related Calculators
About This Calculator
How much will your hourly paycheck actually be after taxes? The Hourly Paycheck Calculator shows you exactly what to expect on payday by calculating federal tax withholding, FICA taxes (Social Security and Medicare), and optional deductions like 401(k) contributions and health insurance premiums.
For the 82 million hourly workers in America, understanding your paycheck is essential for budgeting. The average hourly worker earns $18.56 per hour, but after taxes and deductions, that $741 weekly gross becomes closer to $580-620 take-home. The difference can be surprising if you do not plan for it.
What makes this calculator different: Unlike simple gross-to-net converters, this calculator handles real-world scenarios including overtime pay at 1.5x rates, variable hours, multiple pay frequencies, and pre-tax deductions that reduce your taxable income. Enter your hourly rate and see breakdowns for weekly, bi-weekly, semi-monthly, monthly, and annual pay periods.
2026 Tax Updates Applied: This calculator uses the latest 2026 federal tax brackets, updated FICA rates (6.2% Social Security up to $176,100 wage base, 1.45% Medicare), and standard deduction amounts ($15,000 single, $30,000 married filing jointly).
Need to convert your hourly wage to an annual salary? Use our Salary Calculator for comprehensive pay period conversions. For a deeper dive into tax brackets, try our Income Tax Calculator.
How to Use the Hourly Paycheck Calculator
- 1**Enter your hourly rate**: Input your gross hourly wage before any deductions. This is what your employer lists as your pay rate.
- 2**Set hours per week**: Enter your typical weekly hours. Standard full-time is 40 hours. The calculator treats hours over 40 as overtime if you enable that option.
- 3**Enable overtime (optional)**: Toggle overtime to calculate hours above 40 at the federal 1.5x rate. Enter your typical overtime hours separately if your schedule varies.
- 4**Select pay frequency**: Choose how often you get paid - weekly (52 paychecks), bi-weekly (26), semi-monthly (24), or monthly (12). This affects per-paycheck amounts.
- 5**Choose filing status**: Select Single, Married Filing Jointly, or Head of Household. This determines your tax bracket and standard deduction amount.
- 6**Set federal allowances**: Enter the number from your W-4 form. More allowances means less withholding (but potentially owing at tax time). Zero is the most conservative.
- 7**Add pre-tax deductions (optional)**: Enter monthly 401(k) contributions and health insurance premiums. These reduce your taxable income, lowering your tax bill.
- 8**Add state tax rate (optional)**: Enter your state income tax rate as a percentage. Leave at 0% for states without income tax (TX, FL, WA, etc.).
- 9**Review all pay breakdowns**: See your gross pay, taxes, deductions, and net pay across all time periods from hourly to annual.
How Hourly Pay Converts to Annual Salary
The fundamental conversion from hourly to annual is simple math, but understanding it helps you evaluate job offers and budget effectively.
Standard Full-Time Conversion (40 hours/week, 52 weeks):
| Hourly Rate | Weekly Gross | Annual Gross | After ~25% Tax |
|---|---|---|---|
| $15.00 | $600 | $31,200 | ~$23,400 |
| $18.56 (avg) | $742 | $38,605 | ~$28,950 |
| $20.00 | $800 | $41,600 | ~$31,200 |
| $25.00 | $1,000 | $52,000 | ~$39,000 |
| $30.00 | $1,200 | $62,400 | ~$46,800 |
| $40.00 | $1,600 | $83,200 | ~$62,400 |
| $50.00 | $2,000 | $104,000 | ~$78,000 |
The Formula:
- Annual = Hourly x 2,080 (40 hrs x 52 weeks)
- Monthly = Annual / 12
- Bi-weekly = Annual / 26
- Weekly = Annual / 52
Real-World Adjustments:
Most hourly workers do not work exactly 2,080 hours per year. Consider:
| Factor | Impact on Annual |
|---|---|
| 2 weeks unpaid vacation | Reduce by ~4% |
| Sick days (5 unpaid) | Reduce by ~2% |
| Average 35 hrs/week | Reduce by 12.5% |
| Regular overtime (5 hrs/wk) | Increase by 19% |
Example: $20/hour working 35 hours/week for 50 weeks = $35,000 annual (not $41,600).
For detailed salary conversions across all pay periods, use our Salary Calculator.
2026 Federal Tax Withholding for Hourly Workers
Federal income tax withholding is calculated based on your gross pay, filing status, and W-4 allowances. Here is how 2026 brackets affect hourly workers.
2026 Federal Tax Brackets - Single Filers:
| Tax Rate | Annual Income Range | Weekly Equivalent |
|---|---|---|
| 10% | $0 - $11,925 | $0 - $229 |
| 12% | $11,926 - $48,475 | $229 - $932 |
| 22% | $48,476 - $103,350 | $932 - $1,987 |
| 24% | $103,351 - $197,300 | $1,987 - $3,794 |
| 32% | $197,301+ | $3,794+ |
2026 Federal Tax Brackets - Married Filing Jointly:
| Tax Rate | Annual Income Range | Weekly Equivalent |
|---|---|---|
| 10% | $0 - $23,850 | $0 - $459 |
| 12% | $23,851 - $96,950 | $459 - $1,864 |
| 22% | $96,951 - $206,700 | $1,864 - $3,975 |
| 24% | $206,701 - $394,600 | $3,975 - $7,588 |
Standard Deductions 2026:
- Single: $15,000
- Married Filing Jointly: $30,000
- Head of Household: $22,500
How Withholding Works:
Your employer withholds federal tax from each paycheck based on:
- Your gross pay for that pay period
- Your W-4 filing status and allowances
- IRS Publication 15 withholding tables
Example: $20/hour, 40 hrs/week, Single, 0 allowances
- Gross weekly: $800
- Annualized: $41,600
- Taxable (after standard deduction): $26,600
- Annual federal tax estimate: ~$2,927
- Weekly withholding: ~$56
W-4 Allowances Impact: Each allowance reduces taxable income by approximately $4,300 annually. More allowances = lower withholding, but potentially owing taxes when you file.
For complete 2026 tax calculations, use our Income Tax Calculator.
FICA Taxes: Social Security and Medicare
FICA taxes are unavoidable for W-2 employees, taken directly from every paycheck regardless of your income level or tax bracket.
2026 FICA Rates:
| Tax | Employee Rate | Wage Base | Max Annual Tax |
|---|---|---|---|
| Social Security | 6.2% | $176,100 | $10,918 |
| Medicare | 1.45% | No limit | No limit |
| Additional Medicare | 0.9% | Over $200K | Varies |
| Total FICA | 7.65% |
Your employer pays an additional 7.65%, making the total FICA contribution 15.3% of your wages.
FICA Impact on Hourly Workers:
| Hourly Rate | Weekly Gross | Weekly FICA | Annual FICA |
|---|---|---|---|
| $15.00 | $600 | $45.90 | $2,387 |
| $20.00 | $800 | $61.20 | $3,182 |
| $25.00 | $1,000 | $76.50 | $3,978 |
| $30.00 | $1,200 | $91.80 | $4,774 |
| $40.00 | $1,600 | $122.40 | $6,365 |
Key Facts:
- FICA applies to every dollar from dollar one (no deduction)
- Cannot be reduced through W-4 allowances
- Social Security portion stops at $176,100 earnings (2026)
- Medicare has no cap - high earners pay on all wages
- Self-employed pay the full 15.3% (use our Freelancer Tax Calculator)
FICA Is Not Income Tax: Many workers confuse FICA with federal income tax. They are separate:
- Federal income tax: Progressive, affected by deductions/credits, potentially refundable
- FICA: Flat rate, no deductions, never refundable (but funds your future benefits)
Social Security Benefits: Those FICA taxes fund your future Social Security retirement benefits. The more you earn (up to the wage base), the higher your eventual benefits.
Overtime Pay Calculation (Time and a Half)
Federal law requires overtime pay at 1.5x your regular rate for hours worked over 40 in a workweek. This can significantly boost your paycheck.
The Fair Labor Standards Act (FLSA) Overtime Rules:
| Regular Hours | Overtime Hours | Overtime Rate |
|---|---|---|
| First 40 | Hours 41+ | 1.5x base rate |
Overtime Calculation Example - $20/hour:
| Component | Calculation | Amount |
|---|---|---|
| Regular pay (40 hrs) | 40 x $20 | $800 |
| Overtime pay (10 hrs) | 10 x $30 | $300 |
| Gross weekly | $1,100 |
Annual Impact of Regular Overtime:
| Hourly Rate | No OT (40 hrs) | 5 hrs OT/week | 10 hrs OT/week |
|---|---|---|---|
| $15.00 | $31,200 | $37,050 | $42,900 |
| $20.00 | $41,600 | $49,400 | $57,200 |
| $25.00 | $52,000 | $61,750 | $71,500 |
| $30.00 | $62,400 | $74,100 | $85,800 |
5 hours of weekly overtime at $20/hour adds $7,800 annually to your gross pay.
State Overtime Rules: Some states have additional overtime requirements:
- California: Daily overtime (over 8 hrs/day at 1.5x, over 12 hrs at 2x)
- Alaska: Daily overtime (over 8 hrs)
- Colorado: Daily overtime for certain industries
Who Is Exempt from Overtime: Not all workers qualify for overtime. Exempt employees typically:
- Earn salary above $43,888/year (2024 threshold, higher in 2025+)
- Perform executive, administrative, or professional duties
- Most hourly workers ARE entitled to overtime
Overtime Tax Considerations: Overtime is taxed at your regular rate - there is no special "overtime tax penalty." However, significantly higher earnings may push you into a higher marginal tax bracket for that income portion.
Pre-Tax Deductions That Lower Your Tax Bill
Pre-tax deductions reduce your taxable income, meaning you pay less in federal and state income tax. Understanding these can help you maximize take-home pay.
Common Pre-Tax Deductions:
| Deduction | 2026 Limits | Tax Savings Example |
|---|---|---|
| Traditional 401(k) | $23,500 | 22% bracket: $5,170 |
| Health Insurance | Varies | 22% bracket: premium x 0.22 |
| HSA (Individual) | $4,300 | 22% bracket: $946 |
| HSA (Family) | $8,550 | 22% bracket: $1,881 |
| FSA (Healthcare) | $3,300 | 22% bracket: $726 |
| Dependent Care FSA | $5,000 | 22% bracket: $1,100 |
How Pre-Tax Deductions Work:
Example: $25/hour, 40 hrs/week, Single, contributing $200/month to 401(k)
| Without 401(k) | With 401(k) |
|---|---|
| Gross: $1,000/week | Gross: $1,000/week |
| Taxable: $1,000/week | Taxable: $954/week |
| Federal tax: ~$115 | Federal tax: ~$105 |
| FICA: $76.50 | FICA: $76.50 |
| Net: ~$808 | Net: ~$772 + $46 to 401(k) |
The $46/week 401(k) contribution only reduces take-home by ~$36 because you save ~$10 in federal taxes.
Health Insurance Pre-Tax Benefits: Employer-sponsored health insurance is almost always pre-tax, meaning:
- $400/month premium reduces taxable income by $400
- In the 22% bracket, saves ~$88/month in federal taxes
- Also saves 7.65% FICA in most cases = $30.60/month
- Total monthly tax savings: ~$119 on a $400 premium
401(k) Match - Free Money: If your employer matches 401(k) contributions (e.g., 50% up to 6% of salary):
- $50,000 salary with 6% contribution = $3,000/year
- 50% employer match = $1,500 free money
- Plus tax savings on your $3,000 contribution
For detailed budget planning with your net income, try our Budget Calculator.
State Income Tax Considerations
State income tax adds another layer to your paycheck calculation. Rates vary dramatically, from 0% in nine states to over 13% in California.
States With No Income Tax (2026):
- Alaska
- Florida
- Nevada
- New Hampshire (wages exempt)
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Highest State Income Tax Rates:
| State | Top Rate | Threshold | Notes |
|---|---|---|---|
| California | 13.3% | $1M+ | 10.3% at $68K |
| Hawaii | 11.0% | $200K+ | |
| New Jersey | 10.75% | $1M+ | |
| Oregon | 9.9% | $125K+ | |
| Minnesota | 9.85% | $193K+ | |
| New York | 10.9% | $25M+ | 6.85% more common |
| Vermont | 8.75% | $229K+ |
Impact on Hourly Workers:
$25/hour worker (40 hrs/week, $52,000 annual):
| State | State Tax | Monthly Impact | Annual Impact |
|---|---|---|---|
| Texas | 0% | $0 | $0 |
| Florida | 0% | $0 | $0 |
| Colorado | 4.4% | ~$175 | ~$2,100 |
| Illinois | 4.95% | ~$197 | ~$2,360 |
| New York | ~5.5% | ~$220 | ~$2,640 |
| California | ~6% | ~$240 | ~$2,880 |
Flat Tax vs. Progressive Tax States:
| Type | States | How It Works |
|---|---|---|
| Flat Tax | CO, IL, IN, KY, MA, MI, NC, PA, UT | Same rate for all income |
| Progressive | CA, NY, OR, MN, etc. | Higher income = higher rates |
Local Income Taxes: Some cities and counties add their own income taxes:
- New York City: Up to 3.876% additional
- Philadelphia: 3.79% wage tax
- Detroit: 2.4% city tax
- Various OH cities: 1-3%
Remote Work Complications: If you work remotely for an out-of-state employer, tax rules can be complex. Generally, you pay tax where you physically work, but some states have reciprocity agreements.
Understanding Your Pay Stub
Your pay stub tells the story of your paycheck. Knowing how to read it helps you catch errors and understand where your money goes.
Typical Pay Stub Sections:
1. Gross Earnings
| Line Item | Description |
|---|---|
| Regular Hours | Hours at base rate |
| Regular Pay | Hours x hourly rate |
| OT Hours | Hours over 40 |
| OT Pay | OT hours x 1.5x rate |
| Gross Pay | Total before deductions |
2. Pre-Tax Deductions
| Line Item | Description |
|---|---|
| 401(k) | Retirement contribution |
| Health Insurance | Medical premium |
| Dental/Vision | Optional coverage |
| HSA/FSA | Tax-advantaged savings |
3. Taxes
| Line Item | Description |
|---|---|
| Federal Withholding | Based on W-4 |
| State Withholding | Your state tax rate |
| Social Security | 6.2% of gross |
| Medicare | 1.45% of gross |
| Local Tax | City/county if applicable |
4. Post-Tax Deductions
| Line Item | Description |
|---|---|
| Roth 401(k) | After-tax retirement |
| Life Insurance | Additional coverage |
| Garnishments | Court-ordered |
| Union Dues | If applicable |
5. Net Pay Your actual take-home after all deductions.
YTD (Year-to-Date) Totals: Track these to ensure accuracy:
- YTD Gross should match: (hourly rate x hours x weeks worked) + overtime
- YTD Social Security should stop at $10,918 (once you hit $176,100 earnings)
- YTD 401(k) should not exceed $23,500 (unless catch-up eligible)
Common Pay Stub Errors to Watch:
- Incorrect hourly rate
- Missing overtime hours
- Wrong tax withholding
- Deduction amounts changed without notice
- Hours recorded incorrectly
What to Do If You Find an Error:
- Document the discrepancy
- Contact HR or payroll immediately
- Request correction on next paycheck
- Verify correction was made
Maximizing Your Hourly Take-Home Pay
Strategic decisions can increase your take-home pay without changing your hourly rate. Here are proven approaches.
1. Optimize Your W-4 Allowances
| Situation | Recommended Action |
|---|---|
| Large refund last year | Increase allowances |
| Owed taxes last year | Decrease allowances |
| Side income | Claim fewer allowances |
| Spouse works | Use Two-Earners worksheet |
2. Maximize Tax-Advantaged Benefits
| Benefit | Annual Limit | Tax Savings (22% bracket) |
|---|---|---|
| 401(k) to match | Varies | 22% + employer match |
| HSA | $4,300/$8,550 | Up to $1,881 |
| Healthcare FSA | $3,300 | $726 |
| Dependent Care FSA | $5,000 | $1,100 |
| Transit Benefits | $3,300 | $726 |
3. Timing Strategies
| Strategy | Benefit |
|---|---|
| Front-load 401(k) | Earlier tax-free compounding |
| Adjust withholding mid-year | Avoid over/under paying |
| Time bonus payments | May reduce bracket creep |
4. Evaluate State Tax Moves If considering relocation for work:
| From | To | Annual Savings on $50K |
|---|---|---|
| California | Texas | ~$2,500 |
| New York | Florida | ~$2,200 |
| Oregon | Washington | ~$4,000 |
5. Negotiate Non-Taxable Benefits
| Benefit | Tax Advantage |
|---|---|
| More PTO | Value not taxed |
| Remote work stipend | Often not taxed |
| Education reimbursement | Up to $5,250 tax-free |
| Parking/transit | Pre-tax deduction |
6. Track and Verify Every Paycheck
- Verify hours are recorded correctly
- Check overtime is calculated at 1.5x
- Confirm deductions match your elections
- Report errors immediately
7. Understand Your True Hourly Rate Factor in unpaid time to understand your real compensation:
- Unpaid breaks reduce effective hourly rate
- Commute time is unpaid work time
- Required early arrival (unpaid) affects true rate
Hourly vs. Salary: Which Is Better?
Choosing between hourly and salary positions involves tradeoffs beyond just the pay rate. Here is a comprehensive comparison.
Hourly Employment Advantages:
| Benefit | Explanation |
|---|---|
| Overtime pay | 1.5x for hours over 40 |
| Clear boundaries | Work ends when shift ends |
| Flexibility | Often easier to adjust schedule |
| Pay for all hours | No unpaid overtime |
Salary Employment Advantages:
| Benefit | Explanation |
|---|---|
| Predictable income | Same each paycheck |
| Benefits | More likely to have full benefits |
| Career growth | More advancement opportunities |
| PTO | Typically more generous |
Break-Even Analysis - When Salary Beats Hourly:
$25/hour position vs. $52,000 salary offer:
| Scenario | Hourly Annual | Salary Annual | Winner |
|---|---|---|---|
| 40 hrs/week | $52,000 | $52,000 | Tie |
| 35 hrs/week | $45,500 | $52,000 | Salary (+$6,500) |
| 45 hrs/week | $58,500 | $52,000 | Hourly (+$6,500) |
| 50 hrs/week | $65,000 | $52,000 | Hourly (+$13,000) |
Hidden Compensation Factors:
| Factor | Hourly Impact | Salary Impact |
|---|---|---|
| Health insurance | May not qualify | Usually included |
| 401(k) match | May be limited | Full access |
| Paid vacation | Often none | 2-4 weeks typical |
| Sick pay | Usually unpaid | Usually paid |
| Bonuses | Rare | Often included |
True Comparison Example:
$25/hour vs. $55,000 salary:
| Component | Hourly | Salary |
|---|---|---|
| Base pay | $52,000 | $55,000 |
| Health insurance value | -$6,000 (pay own) | Included |
| 401(k) match | None | +$2,750 (5%) |
| Paid vacation (2 wks) | -$2,000 | Included |
| Overtime potential | +$7,800 (5 hrs/wk) | None |
| Effective total | $51,800 | $57,750 |
Best of Both Worlds: Some positions offer hourly pay with full benefits. These can be ideal, combining overtime potential with employment benefits.
For salary conversion calculations, use our Salary Calculator.
Budgeting on an Hourly Income
Variable income makes budgeting challenging, but the right strategies can provide financial stability even with fluctuating hours.
The 50/30/20 Budget for Hourly Workers:
Based on NET (take-home) pay:
- 50% Needs: Rent, utilities, food, transportation, insurance
- 30% Wants: Entertainment, dining out, hobbies
- 20% Savings: Emergency fund, retirement, goals
Example: $20/hour, 35-40 hours/week variable
| Category | Low Week (35 hrs) | Full Week (40 hrs) |
|---|---|---|
| Gross | $700 | $800 |
| Net (est.) | $560 | $640 |
| Needs (50%) | $280 | $320 |
| Wants (30%) | $168 | $192 |
| Savings (20%) | $112 | $128 |
Variable Income Strategies:
1. Budget on Minimum Hours If you typically work 35-45 hours:
- Base budget on 35 hours
- Extra hours go to savings/debt
2. Average Income Approach
- Track 3 months of actual take-home
- Calculate weekly average
- Budget based on average, not best weeks
3. Two-Account System
- Deposit all paychecks to savings
- Transfer fixed weekly amount to checking
- Prevents overspending during good weeks
Emergency Fund Priority: Hourly workers face more income uncertainty. Aim for:
- Minimum: 3 months expenses
- Recommended: 6 months expenses
- Ideal: 6 months + job search fund
Handling Hours Cuts:
| Expense Category | First Cut | Last Cut |
|---|---|---|
| Subscriptions | Pause all | |
| Dining out | Eliminate | |
| Entertainment | Minimize | |
| Groceries | Budget carefully | |
| Housing | Fixed obligation | |
| Insurance | Maintain coverage |
Building Stability:
- Side gig income: Adds buffer for slow periods
- Multiple part-time jobs: Diversifies income sources
- Skill development: Positions you for higher-paying roles
For comprehensive budget planning, use our Budget Calculator.
Pro Tips
- 💡Calculate your take-home pay before accepting a job offer. A $20/hour job in California pays very differently than the same rate in Texas due to state taxes.
- 💡Set up automatic 401(k) contributions to at least get your employer match. This is free money you cannot afford to leave on the table.
- 💡Track your actual hours worked, including unpaid breaks and early arrivals. Your true effective hourly rate may be lower than your stated rate.
- 💡Review your pay stub every pay period. Catch errors early - employers sometimes make mistakes with hours, rates, or deductions.
- 💡Budget based on your minimum expected hours, not your best weeks. Use extra earnings from good weeks to build emergency savings.
- 💡Understand the difference between gross and net pay. Your $40,000 annual salary at $20/hour becomes roughly $30,000 after all taxes and deductions.
- 💡Consider the total compensation package, not just hourly rate. Benefits like health insurance and 401(k) match can add 20-30% to your effective compensation.
- 💡If you consistently work overtime, factor this into your budget but also track it as "bonus" income to save.
- 💡Update your W-4 after major life changes: marriage, divorce, new child, spouse job changes. This keeps withholding accurate.
- 💡Keep records of all hours worked. If there is ever a dispute about pay, your documentation protects you.
- 💡Pre-tax deductions like health insurance and 401(k) reduce your taxable income. A $200 deduction might only reduce take-home by $150-160.
- 💡Check that overtime is being calculated correctly: time-and-a-half (1.5x) for hours over 40 per week is federal law for most hourly workers.
- 💡Use your pay raise for increased savings, not lifestyle inflation. Directing a raise to 401(k) means you never miss the money.
- 💡If you receive tips, track and report them accurately. Unreported income can cause problems during tax filing or loan applications.
- 💡Consider a side gig during slow periods at your main job. Diversified income sources provide more stability for hourly workers.
Frequently Asked Questions
To calculate take-home pay from an hourly wage: 1) Calculate gross pay (hourly rate x hours worked, plus any overtime at 1.5x), 2) Subtract FICA taxes (7.65% for Social Security and Medicare), 3) Subtract federal income tax withholding (based on your W-4 and tax bracket), 4) Subtract state income tax (if applicable), 5) Subtract any pre-tax deductions (401k, health insurance). For example, $20/hour for 40 hours = $800 gross. After ~$61 FICA, ~$56 federal tax, and ~$40 state tax, net pay is approximately $643.
