How to read your pay stub
Every line explained, from gross pay to net pay, with a real example and the abbreviations you'll see.
Your pay stub (also called a paycheck stub, earnings statement or pay slip) shows how your employer gets from your salary to the amount that lands in your bank account. It looks complicated, but every stub follows the same logic: gross pay, minus pre-tax deductions, minus taxes, minus after-tax deductions, equals net pay.
A worked example
Here is a simplified pay stub for someone earning $75,000 a year in California, paid every two weeks, single, saving 5% in a 401(k). The amounts come from our calculator with 2026 tax rules.
| Line | This paycheck |
|---|---|
| Gross pay | $2,884.62 |
| 401(k) (pre-tax) | −$144.23 |
| Federal income tax | −$263.27 |
| Social Security | −$178.85 |
| Medicare | −$41.83 |
| California income tax | −$90.97 |
| CA disability (SDI) | −$37.50 |
| Net pay | $2,127.98 |
Out of $2,884.62 in gross pay, about $2,127.98 is take-home pay, $144.23 goes to retirement savings and $612.41 goes to taxes and state insurance. See this exact example in the calculator →
1. Gross pay
Gross pay is what you earned before anything is taken out. For salaried workers it's your yearly salary divided by the number of paychecks: 26 if you're paid every two weeks, 24 if twice a month, 12 if monthly and 52 if weekly. For hourly workers it's your rate times the hours you worked, with overtime usually at 1.5 times your rate.
Check that your pay rate and hours are right. Mistakes here carry through to every other line.
2. Pre-tax deductions
These come out before taxes are calculated, so they lower your tax bill:
- Traditional 401(k) or 403(b): lowers federal and most state income tax, but Social Security and Medicare are still due on it.
- Health, dental and vision insurance, HSA and FSA contributions through a cafeteria plan: these usually skip federal income tax and Social Security and Medicare.
- Commuter benefits such as transit passes and parking.
That's why saving more in a 401(k) doesn't cut your take-home pay dollar for dollar: some of it would have gone to taxes anyway.
3. Taxes withheld
Federal income tax
Your employer withholds federal income tax based on the W-4 form you filled in and the IRS withholding tables. The 2026 brackets run from 10% to 37%, and the standard deduction for a single filer is $16,100. Withholding is an estimate of your yearly tax spread over your paychecks; you settle the exact amount when you file your tax return.
Social Security and Medicare (FICA)
Social Security is 6.2% of your wages up to $184,500 a year in 2026. Once your year-to-date wages pass that amount, this line drops to zero for the rest of the year. Medicare is 1.45% of all wages, plus an extra 0.9% on wages above $200,000. Your employer pays a matching 6.2% and 1.45% on top, which doesn't appear as a deduction on your stub.
State and local income tax
Most states withhold income tax too. Nine states have no tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Some cities, counties and school districts add their own tax, for example New York City, Philadelphia, Detroit and many places in Ohio, Pennsylvania, Indiana, Kentucky and Maryland. Compare take-home pay in every state →
State insurance programs
A few states take a small share of your pay for disability or paid family leave insurance, shown as SDI, TDI, PFL, FLI or PFML. California, New Jersey, New York, Washington, Massachusetts and others have one.
4. After-tax deductions
These come out after taxes and don't lower your tax bill: Roth 401(k) contributions, union dues, some life or disability insurance, charitable giving through payroll and wage garnishments.
5. Net pay
Net pay, your take-home pay, is what's left. It's the number that matters for your budget.
Current vs. year to date (YTD)
Most stubs have two columns: Current for this paycheck and YTD for everything since January 1. The YTD column is useful for checking that Social Security stops at the yearly limit, tracking your 401(k) savings, and comparing your total federal withholding with what you expect to owe.
Common pay stub abbreviations
| Abbreviation | Meaning |
|---|---|
| FIT, FITW, FWT | Federal income tax withheld |
| SS, OASDI, FICA-SS | Social Security (Old-Age, Survivors and Disability Insurance) |
| MED, MEDI, FICA-M | Medicare |
| SIT, SWT | State income tax withheld |
| LIT, CITY, LOCAL | City, county or school district income tax |
| SDI, TDI, PFL, FLI, PFML | State disability or paid family and medical leave insurance |
| 401K, 403B, RET | Retirement plan contribution |
| HSA, FSA, MED/DEN/VIS | Health savings, flexible spending and health, dental or vision insurance |
| YTD | Year to date: the running total since January 1 |
| NET | Net pay, your take-home pay |
What to check on every pay stub
- Your pay rate, hours and pay period dates are right.
- Your filing status and W-4 details match your situation, especially after marriage, a new child or a second job.
- The right state is withheld if you moved or work remotely in another state.
- Benefit deductions match what you signed up for.
- Social Security stops once your YTD wages pass $184,500.
Why your paycheck may differ from our calculator
Our calculator spreads your yearly tax evenly over the year. Real payroll uses the IRS withholding tables for each paycheck, so amounts can differ by a few dollars. Bigger gaps usually come from extra withholding on your W-4, bonuses (often withheld at a flat 22% federal rate), benefits not entered in the calculator, or local taxes.
More guides
- How to fill out a W-4: each step of the 2026 Form W-4 and how it changes your paycheck.
Updated October 23, 2026. For general information only, not tax advice.