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Hourly Paycheck Calculator

The example is $20 an hour, 40 hours a week, paid every two weeks. That is $1,600 before taxes and $41,600 for the year.

Tax year 2026 Tables verified 2026-10-09
Overtime, tips, and bonus
W-4, benefits, local tax, and year-to-date

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Every two weeks

Net pay $1,321.29

Effective tax rate 17.42% of gross. About $2,862.80 a month over a full year.

  • Net pay $1,321.29
  • Federal income tax $108.15
  • FICA $122.40
  • State and local $27.36
  • State payroll $20.80
This paycheck
$1,321.29
Full year, net
$34,353.54
Full year, gross
$41,600.00
Hourly equivalent
$20.00
How we calculated this
Gross pay$1,600.00
  1. This paycheck $1,600.00

Amount entered. Hourly rate times hours, plus overtime, tips, and any bonus on this check.

Federal income tax$108.15
  1. 1a Taxable wages this period $1,600.00
  2. 1b Pay periods in the year 26
  3. 1c Annualized wages (1a × 1b) $41,600.00
  4. 1d Step 4(a) other income $0.00
  5. 1e 1c + 1d $41,600.00
  6. 1f Step 4(b) deductions $0.00
  7. 1g $8,600.00 (any other filing status)
  8. 1i Adjusted annual wages $33,000.00
  9. Table Single or married filing separately, standard (Pub 15-T 2026)
  10. Bracket $19,900.00 up to $57,900.00: $1,240.00 plus 12% of the amount over $19,900.00
  11. 2g Tentative annual tax $2,812.00
  12. 2h Per paycheck (2g ÷ periods) $108.15
  13. 3 Step 3 credits, per paycheck $0.00
  14. 4c Extra withholding $0.00
  15. Federal income tax this paycheck $108.15

IRS Publication 15-T (2026), Worksheet 1A. Percentage method for automated payroll systems.

Social Security$99.20
  1. Rate 6.2% × $1,600.00 of Social Security wages, wage base $184,500.
  2. This paycheck $99.20

Social Security Administration, contribution and benefit base. 6.2% up to the 2026 wage base of $184,500. The annual maximum is $11,439.

Medicare$23.20
  1. This paycheck $23.20

IRS Publication 15 (2026). 1.45% of Medicare wages. No wage base.

California income tax$27.36
  1. Method EDD Method B, annual table, Single, dual-income married, or married with multiple employers.
  2. Standard deduction $5,706.00
  3. Taxable income $35,894.00
  4. Annual table row Over $26,264.00: $455.94 plus 4.40% of the excess.
  5. Tax before allowance credit $879.66
  6. Allowance credit 1 × $168.30 = $168.30
  7. Annual withholding $711.36
  8. This paycheck $27.36

California Employment Development Department. California EDD 2026 Method B exact-calculation method, annual payroll-period tables.

California SDI$20.80
  1. Rate 1.3% × $1,600.00 = $20.80

California EDD, payroll tax rates. 1.3% of wages. No wage cap in 2026.

Net pay$1,321.29

Overtime on an hourly check

Overtime hours are paid at the multiplier you set, and that pay is taxed as wages. The filing deduction uses only the extra half of the regular rate, and only up to the cap.

Questions

How is hourly pay annualized?

The regular wage is the rate times weekly hours times 52. A biweekly check uses two weeks. $20 an hour and 40 hours is $41,600 a year.

How is overtime taxed?

Overtime pay is part of gross wages, so income tax and FICA apply. The separate overtime deduction, if you qualify, is claimed on the tax return. It does not cut FICA.

What overtime premium counts for the deduction?

Only the extra half-time required by federal law, even if the employer pays double time. The cap is $12,500, or $25,000 for married filing jointly.

Can I add tips?

Yes. Tips on this check are wages for withholding and FICA. The tips deduction is estimated separately and does not reduce this check.

Related

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Who is responsible

Published by PaycheckZip.com. A credentialed reviewer has not signed this page. The review seat is open. Figures are estimates from the tables named in the method, checked 2026-10-09. They are not tax advice.

Case amounts on the public list, such as $216.15 of federal income tax on the single biweekly example, come from the same code as this page.