Calculation Methodology

Last Updated: September 18, 2026

This is the most important page on this site, more important than the About page, honestly. It explains the actual math behind every number our calculator gives you: what gets taxed, what formulas we use, and exactly where each rate comes from. Most competing calculators do not publish this level of detail. We do, because if you are trusting a tool with your paycheck, you should be able to see under the hood.

How We Calculate Your Paycheck: Formulas & Methodology

Every number on this page comes from real formulas, not a black box. Here’s exactly what runs behind the scenes, using that same $75,000 NYC example so you can follow the math step by step. For the full technical writeup, see our calculation methodology page.

1. Gross Pay Per Paycheck

Annual salary gets split evenly across your pay periods for the year.Gross Pay Per Paycheck=Annual Gross SalaryNumber of Pay Periods\text{Gross Pay Per Paycheck} = \frac{\text{Annual Gross Salary}}{\text{Number of Pay Periods}}Gross Pay Per Paycheck=Number of Pay Periods Annual Gross Salary​

Biweekly example: 75,000÷26=$2,884.6275{,}000 \div 26 = \mathbf{\$2{,}884.62}75,000÷26=$2,884.62

2. FICA: Social Security & Medicare

Two flat percentages come straight off gross pay, no brackets involved.Social Security=Gross Pay×0.062\text{Social Security} = \text{Gross Pay} \times 0.062Social Security=Gross Pay×0.062

2,884.62×0.062=$178.852{,}884.62 \times 0.062 = \mathbf{\$178.85}2,884.62×0.062=$178.85Medicare=Gross Pay×0.0145\text{Medicare} = \text{Gross Pay} \times 0.0145Medicare=Gross Pay×0.0145

2,884.62×0.0145=$41.832{,}884.62 \times 0.0145 = \mathbf{\$41.83}2,884.62×0.0145=$41.83

3. Mandatory New York Payroll Deductions

PFL is a percentage with a yearly cap. SDI is just a flat weekly charge.NY PFL=Gross Pay×0.00432\text{NY PFL} = \text{Gross Pay} \times 0.00432NY PFL=Gross Pay×0.00432

2,884.62×0.00432=$12.462{,}884.62 \times 0.00432 = \mathbf{\$12.46}2,884.62×0.00432=$12.46NY SDI=$0.60×Weeks per Pay Period\text{NY SDI} = \$0.60 \times \text{Weeks per Pay Period}NY SDI=$0.60×Weeks per Pay Period

Biweekly covers 2 weeks: 0.60×2=$1.200.60 \times 2 = \mathbf{\$1.20}0.60×2=$1.20

4. Federal, NY State, and NYC Progressive Taxes

These three don’t use flat rates. Each one runs your taxable income through its own bracket schedule: federal follows IRS Publication 15-T withholding tables based on filing status, NY State applies its 2026 brackets (3.9% to 10.9%), and NYC applies its own local brackets (3.078% to 3.876%) if you live in any of the five boroughs.Total Income Taxes=Federal Tax+NY State Tax+NYC Local Tax\text{Total Income Taxes} = \text{Federal Tax} + \text{NY State Tax} + \text{NYC Local Tax}Total Income Taxes=Federal Tax+NY State Tax+NYC Local Tax

5. Net Take-Home Pay

Add up every deduction, then subtract the total from gross pay.Total Deductions=FICA+NY PFL+NY SDI+Income Taxes\text{Total Deductions} = \text{FICA} + \text{NY PFL} + \text{NY SDI} + \text{Income Taxes}Total Deductions=FICA+NY PFL+NY SDI+Income Taxes Take-Home Pay=Gross Pay−Total Deductions\text{Take-Home Pay} = \text{Gross Pay} – \text{Total Deductions}Take-Home Pay=Gross Pay−Total Deductions

Full calculation for our $75,000 single NYC resident, paid biweekly:$2,884.62−($178.85+$41.83+$12.46+$1.20+$295.00+$132.81+$95.08)=$2,127.39\$2{,}884.62 – (\$178.85 + \$41.83 + \$12.46 + \$1.20 + \$295.00 + \$132.81 + \$95.08) = \mathbf{\$2{,}127.39}$2,884.62−($178.85+$41.83+$12.46+$1.20+$295.00+$132.81+$95.08)=$2,127.39

That final number matches the take-home pay in the table above, because it’s the exact same engine running behind this calculator.

Why This Matters More Than It Sounds

A calculator that only applies federal tax and a flat New York State rate will overstate take-home pay for anyone living in NYC or Yonkers, and it will misrepresent the PFL and SDI deductions that show up on nearly every New York pay stub. Small layers add up, and the point of building this tool was to stop treating New York like a single flat-rate state when it clearly is not.

Our Sources

Every figure on this page and in the calculator itself is pulled from official government publications, not from other calculator sites or aggregator blogs:

Limitations

This calculator gives estimates, not a guarantee. It does not account for things like local wage garnishments, employer-specific benefit deductions, retirement plan contributions, or unusual filing situations. Tax rates and caps change from year to year, sometimes mid-year, and while we review official sources regularly, you should treat every result as a starting point rather than a final number.

For anything beyond a general estimate, talk to a licensed CPA or tax professional. You can read more about the limits of this tool on our Disclaimer page, or the legal terms behind using it on our Terms of Use page.

Questions About Our Methodology

If a number does not look right to you, or you think a rate is outdated, tell us. Reach out through our Contact page or support@nypaycheckcalculator.com, and we will check it against the official source and correct it if needed.

To learn more about who built this tool, visit About Us. For how we handle your data while you use the calculator, see our Privacy Policy.

This site helps New York workers understand their take-home pay. Calculations are based on official 2026 IRS and New York State Department of Taxation and Finance rates. All results are estimates, consult a tax professional for advice specific to your situation.

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