How the Hourly Paycheck Is Calculated
The hourly paycheck is calculated in 4 steps: gross weekly pay, annual gross pay, annual taxes, and the net amount per paycheck.
- Gross weekly pay = hourly rate × regular hours + hourly rate × 1.5 × overtime hours.
- Annual gross pay = gross weekly pay × 52 weeks.
- Annual taxes = federal income tax on (annual gross − standard deduction) + 7.65% FICA + the state rate.
- Net paycheck = (annual gross − annual taxes) ÷ paychecks per year.
Payroll software annualizes each paycheck the same way. IRS Publication 15-T converts every paycheck to a yearly figure, applies the yearly brackets, and divides the tax back to one pay period.
Hourly Paycheck Examples for 2026
The table shows biweekly take-home pay for a single filer in a state with no income tax, at 40 hours a week.
| Hourly rate | Gross biweekly | Net biweekly | Net per year |
|---|---|---|---|
| $15 | $1,200 | $1,048.05 | $27,249.20 |
| $20 | $1,600 | $1,369.45 | $35,605.60 |
| $25 | $2,000 | $1,690.85 | $43,962 |
| $30 | $2,400 | $2,012.25 | $52,318.40 |
| $40 | $3,200 | $2,590.82 | $67,361.20 |
| $50 | $4,000 | $3,153.62 | $81,994 |
Five overtime hours a week raise the $20 paycheck from $1,369.45 to $1,610.50 net every two weeks. Overtime pays 1.5 times the hourly rate under the Fair Labor Standards Act (FLSA) after 40 hours in a workweek.
What Comes Out of an Hourly Paycheck
An hourly paycheck loses 4 deductions required by law: federal income tax, Social Security tax, Medicare tax, and state income tax.
- Federal income tax uses 7 brackets from 10% to 37%. The 2026 standard deduction removes the first $16,100 of yearly pay for a single filer.
- Social Security takes 6.2% of every dollar up to $184,500 of yearly wages.
- Medicare takes 1.45% of all wages, plus 0.9% above $200,000.
- State income tax is 0% in 9 states, including Texas, Florida and Washington, and a flat or graduated rate elsewhere.
Voluntary deductions such as a 401(k), health insurance and union dues come out next. The Payroll Deduction Calculator adds them to the paycheck.
Hourly Paycheck by Pay Frequency: Weekly, Biweekly and Monthly
Pay frequency changes the size of each paycheck, not the yearly take-home pay. The same $20 hourly wage at 40 hours a week splits into 52, 26, 24 or 12 paychecks.
| Pay frequency | Paychecks a year | Gross per paycheck | Net per paycheck |
|---|---|---|---|
| Weekly | 52 | $800 | $684.72 |
| Biweekly | 26 | $1,600 | $1,369.45 |
| Semi-monthly | 24 | $1,733.33 | $1,483.57 |
| Monthly | 12 | $3,466.67 | $2,967.13 |
A biweekly paycheck is not half a month of pay. Twenty-six biweekly paychecks give 2 months of the year a third paycheck, so a budget built on 2 paychecks a month has 2 extra paychecks a year.
Hourly Paycheck by State
State income tax is the only deduction on an hourly paycheck that depends on where you work. Federal tax and FICA follow the same rules in every state.
| State | State tax rate | Net biweekly at $25 an hour |
|---|---|---|
| Texas | 0% | $1,690.85 |
| Arizona | 2.5% | $1,640.85 |
| Pennsylvania | 3.07% | $1,629.45 |
| Illinois | 4.95% | $1,591.85 |
The 4 states in the table use one flat rate, so the calculator matches them closely. States with graduated brackets, such as California and New York, take a smaller share of a low paycheck and a larger share of a high one. For those states, choose "Other state (enter rate)" and enter your average state rate. City income taxes, such as those in New York City or Philadelphia, come on top.
Hourly Pay by Day and by Minute
Daily pay is the hourly rate multiplied by the hours worked that day. An 8-hour day at $20 pays $160 gross, and a 10-hour day pays $200.
Pay by the minute is the hourly rate divided by 60. At $20 an hour, each minute pays $0.33, so a 7-hour 45-minute shift pays $155.
Payroll converts minutes to decimal hours before it multiplies:
| Minutes | Decimal hours | Pay at $20 an hour |
|---|---|---|
| 15 minutes | 0.25 | $5 |
| 20 minutes | 0.33 | $6.67 |
| 30 minutes | 0.5 | $10 |
| 45 minutes | 0.75 | $15 |
The Time Card Calculator adds clock-in and clock-out times for a whole week.
Hourly Pay Difference Between Two Rates
A raise in the hourly rate adds less to the paycheck than the gross difference suggests, because the extra dollars are taxed at your top bracket plus FICA.
Moving from $18 to $22 an hour at 40 hours a week adds $8,320 a year gross. Take-home pay rises from $32,263.04 to $38,948.16 a year for a single filer in Texas.
Run the calculator once with each rate to compare two job offers, or use the Pay Raise Calculator to see a raise as a percentage.
Why Your Real Paycheck Can Differ From the Estimate
A real paycheck can differ from the estimate for 5 common reasons:
- Form W-4 choices: extra withholding, dependents or a second job on the W-4 change federal tax per paycheck.
- Pre-tax deductions: 401(k), health insurance and HSA contributions lower taxable pay before tax is figured.
- Local taxes: city, county and school district taxes are not in the state rate.
- Uneven hours: withholding is figured on each paycheck alone, so a week with many hours is withheld as if every week paid that much.
- State disability or family leave tax: a few states, such as California and New Jersey, take a small payroll tax for these programs.
The yearly tax return settles the difference between what was withheld and the tax you owe.
Frequently Asked Questions
How can I calculate my hourly rate?
You calculate your hourly rate by dividing your pay for a period by the hours worked in that period. A $1,000 weekly paycheck for 40 hours is $25 an hour. A yearly salary divides by 2,080 hours.
How much do I get paid an hour after taxes?
You get paid about 80% to 88% of your hourly rate after taxes at common wages. A $20 rate at 40 hours a week leaves $17.12 an hour for a single filer with no state income tax.
Does the calculator include overtime?
Yes. The hourly paycheck calculator pays every overtime hour at 1.5 times the hourly rate and adds it to the paycheck before taxes.
How many hours are in a biweekly pay period?
A biweekly pay period has 80 hours at 40 hours a week. A year has 26 biweekly pay periods and 2,080 working hours.
How much is $20 an hour biweekly after taxes?
$20 an hour is $1,369.45 biweekly after taxes at 40 hours a week for a single filer in a state with no income tax. Gross pay is $1,600 every two weeks.
How do I calculate my pay by the minute?
You calculate pay by the minute by dividing the hourly rate by 60. At $24 an hour, each minute pays $0.40, and 25 minutes pay $10.
Does the hourly paycheck calculator work for every state?
Yes. The calculator has the 9 states with no wage income tax and the flat-rate states of Arizona, Illinois and Pennsylvania built in. For any other state, choose "Other state (enter rate)" and enter your average state tax rate.
What is the difference between before tax and after tax hourly pay?
Before tax hourly pay is the rate on your job offer; after tax hourly pay is what you keep once federal tax, FICA and state tax come out. A $20 rate keeps $17.12 an hour for a single filer with no state income tax.
How does a gross to net calculator per hour work?
It multiplies your hourly rate by the hours you work in a pay period to get gross pay, then subtracts federal income tax, Social Security, Medicare and state tax. Dividing the net by the hours gives your take-home pay per hour.