W-2 Tax Calculator 2026
Calculate taxes for W-2 employees including federal income tax, state tax, Social Security, and Medicare. Understand your complete tax picture.
W-2 Tax Calculator
W-2 Employee Benefits
• Taxes automatically withheld
• Employer pays half of FICA
• Eligible for unemployment benefits
• Employer-provided benefits
Payroll Taxes
Social Security: 6.2% (up to $168,600)
Medicare: 1.45% (no limit)
Total: 7.65%
2026 Federal Tax Brackets - Single
| Taxable Income | Tax Rate | Tax Amount |
|---|---|---|
| $0 - $11,600 | 10% | - |
| $11,600 - $47,150 | 12% | - |
| $47,150 - $100,525 | 22% | - |
| $100,525 - $191,950 | 24% | - |
| $191,950 - $243,725 | 32% | - |
| $243,725 - $609,350 | 35% | - |
| $609,350 - ∞ | 37% | - |
W-2 Tax Planning Tips
Tax Reduction Strategies
- • Maximize 401(k) contributions
- • Use health savings accounts (HSA)
- • Consider flexible spending accounts (FSA)
- • Optimize your W-4 withholding
- • Take advantage of employer benefits
W-4 Optimization
- • Claim appropriate allowances
- • Consider additional withholding if needed
- • Update when life circumstances change
- • Use the IRS withholding calculator
- • Review annually for accuracy
Understanding W-2 Taxes
What is W-2 Income?
W-2 income is money you earn as an employee of a company. Your employer withholds taxes from your paycheck and provides you with a Form W-2 at the end of the year.
This income is subject to federal income tax, state tax (if applicable), Social Security, and Medicare taxes.
Tax Withholding
Your employer automatically withholds federal and state income taxes from your paycheck based on your W-4 form and filing status. This helps you avoid a large tax bill at year-end.
You can adjust your withholding by updating your W-4 form with your employer.
Payroll Taxes
Payroll taxes include Social Security (6.2% up to $168,600) and Medicare (1.45% of all wages). Your employer matches these contributions.
High earners may be subject to additional Medicare tax on income above certain thresholds.
W-2 Employee Benefits and Deductions
Pre-Tax Benefits
- •401(k) retirement contributions
- •Health insurance premiums
- •Health savings accounts (HSA)
- •Flexible spending accounts (FSA)
- •Dependent care assistance
Standard Deductions
- •Standard deduction ($13,850 single, $27,700 married)
- •Student loan interest deduction
- •Traditional IRA contributions
- •Charitable contributions
- •Medical expenses (if itemizing)
Tax Planning for W-2 Employees
Optimizing Your W-4
- •Claim appropriate allowances
- •Consider additional withholding if needed
- •Update when life circumstances change
- •Use the IRS withholding calculator
Maximizing Benefits
- •Contribute to employer retirement plans
- •Use health savings accounts (HSA)
- •Take advantage of employer benefits
- •Consider flexible spending accounts
W-2 vs 1099: Understanding the Differences
W-2 Employee
- ✓Taxes automatically withheld
- ✓Employer pays half of FICA
- ✓Eligible for unemployment benefits
- ✓Employer-provided benefits
- ✗Limited business deductions
1099 Independent Contractor
- ✗No automatic tax withholding
- ✗Pay full 15.3% self-employment tax
- ✗No unemployment benefits
- ✗No employer benefits
- ✓Extensive business deductions