How the estimate is calculated
- 1
Normalize annual salary
The calculator starts with annual gross W-2 wages and divides the final result by the selected number of pay periods.
- 2
Apply eligible pre-tax contributions
Entered contributions reduce income-tax wages. For a conservative estimate, FICA remains calculated on gross wages.
- 3
Calculate taxable income
The 2026 federal and New York standard deductions are subtracted before progressive income-tax brackets are applied.
- 4
Calculate federal, state, and city taxes
Each jurisdiction is calculated separately through its progressive brackets instead of applying one flat rate to the full salary.
- 5
Add FICA payroll taxes
Social Security, Medicare, and Additional Medicare Tax are added when applicable, including the annual Social Security wage base.
- 6
Calculate take-home pay
Estimated taxes and pre-tax contributions are subtracted from gross salary, then annual net pay is divided across the chosen pay schedule.
Core 2026 assumptions
How this compares to your actual pay stub
Your employer’s payroll system and this calculator start from the same wage and run the same four tax layers, but a real pay stub can diverge for reasons this estimate does not see: your specific W-4 and IT-2104 elections, a mid-year raise, overtime or bonus pay processed on a separate supplemental rate, employer-sponsored health premiums, a 401(k) match, or a wage garnishment. If your pay stub’s net wages differ from this estimate, the gap is almost always one of those payroll-specific inputs, not an error in either calculation.
For a full breakdown of each deduction with a worked example, read Salary vs. take-home pay in NYC on the blog.
What the estimate does not model
The calculation does not model every W-4 or IT-2104 election, dependents, itemized deductions, refundable credits, multiple jobs, bonuses, stock compensation, garnishments, employer benefits, or every high-income tax rule. It is a planning estimate, not tax preparation or payroll advice.
Primary sources
Assumptions are checked against publications from the IRS, Social Security Administration, and New York State Department of Taxation and Finance.