How to Read a Pay Stub Line by Line (2026 Guide)

How to read a pay stub means checking four blocks: gross pay, taxes withheld, deductions, and year-to-date totals. On a $75,000 salary paid biweekly in Texas, a single filer with a 5% 401(k) contribution should see about $2,884.62 gross and about $2,256.44 net per check.

You just got your first real paycheck, or your raise finally kicked in, and the stub looks like a wall of abbreviations. Some lines are money you keep, some are money you already pay to the government, and some are money you're saving for later. Federal tax alone takes 10% to 22% off most salaries in 2026, before state tax, FICA, and benefits enter the picture. Use our NetPayGuide paycheck calculator to plug in your own number and compare the result against what your stub says. This guide walks through each line so you can tell whether the numbers make sense and where to look if they don't.

What a Pay Stub Is For

A pay stub, also called an earnings statement, is your employer's record of one pay period. It shows how much you earned, what was withheld, and what was deposited. It is not a tax form. Your W-2, which arrives in January, summarizes the full year for the IRS and your state, but the stub is the only document that shows each paycheck in detail.

Stubs matter for three reasons. First, they show whether your withholding matches your W-4, which controls how much federal income tax comes out of each check. Second, they prove income for rental applications, loans, and benefit eligibility. Third, they are your early warning system: a pay error caught on the first check is a phone call, while one caught in April is a tax-season headache.

The layout varies by employer. Companies that run payroll through a platform such as ADP or Gusto often use a different template than a company that runs payroll in-house or through a smaller provider. The labels change, but the logic does not. Every stub follows the same chain: gross pay, minus pre-tax deductions, minus taxes, minus post-tax deductions, equals net pay.

How to Read a Pay Stub from Top to Bottom

Start with the header. Confirm your name, the employer's name, the last four digits of your Social Security number, and the pay period start and end dates. Next, check the pay date. A pay period that runs from the 1st to the 15th will usually be paid around the 20th of the month, but employers vary, so the exact date matters less than whether it matches what you were promised.

The earnings section is where the stub begins to make sense. Most stubs have a row for each type of pay, with columns for hours, rate, and current and year-to-date amounts. Common rows include:

• Regular (or Salary): hours times rate, or your salary divided by the number of pay periods.
• Overtime: hours worked above the threshold, usually paid at 1.5 times the regular rate.
• Bonus or Supplemental: one-time payments, often withheld at a flat rate.
• PTO, Holiday, Sick: paid time off, which still counts as taxable wages.

Gross pay is the total of all earnings rows before anything comes out. Net pay is what hits your bank account after every deduction and tax. Pay stub gross vs net is the first comparison to make, because the gap between them is where most confusion starts. A worker earning $75,000 a year gets $2,884.62 gross per biweekly check, but net pay is always lower because of taxes and deductions.

Working Through the Worked Example

Here is a full example you can reproduce. Assumptions: single filer, Texas resident, salary of $75,000, paid 26 times per year (biweekly), 5% pre-tax 401(k) contribution, no HSA or FSA, W-4 with no extra withholding, no dependents.

| Line | Annual | Per Biweekly Check | |---|---|---| | Gross pay ($75,000 ÷ 26) | $75,000.00 | $2,884.62 | | 401(k) pre-tax (5%) | −$3,750.00 | −$144.23 | | Social Security (6.2%) | −$4,650.00 | −$178.85 | | Medicare (1.45%) | −$1,087.50 | −$41.83 | | Federal income tax | −$6,845.00 | −$263.27 | | Texas state income tax | $0.00 | $0.00 | | Net pay (take-home) | $58,667.50 | $2,256.44 |

The federal figure comes from taxable income of $55,150: $75,000 minus the $3,750 401(k) minus the $16,100 standard deduction. The first $12,400 is taxed at 10%, the next $38,000 at 12%, and the last $4,750 at 22%. That totals $6,845. Texas has no wage income tax, so the state line is zero. Enter the same inputs into the NetPayGuide paycheck calculator and you should land close to the same net figure. Small differences can come from how your employer rounds per-check withholding.

Notice that FICA is calculated on the full $75,000, not on $71,250. A traditional 401(k) lowers the income tax line, but it does not reduce Social Security or Medicare withholding. That surprises many people, and it is one of the most common points of confusion when someone compares their stub to a calculator.

Federal, State, and Local Withholding Lines

Withholding is money your employer sends to the government on your behalf, based on your W-4 and the pay-period tables. It is not a final tax bill. Your actual federal tax is figured when you file your return, and you will get a refund or owe a balance depending on whether the amounts withheld matched your true liability.

Federal Withholding on Pay Stub

Federal withholding on pay stub appears as "Federal Income Tax," "Fed W/H," or "FIT." Your employer computes it using the IRS percentage method, which reads the information on your current W-4 and the number of pay periods you have each year. Your standard deduction for 2026 is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household.

If your federal line looks wrong, check your W-4 first. Step 2 applies if you have multiple jobs or a working spouse. Step 3 adds credits for dependents, currently $2,200 per qualifying child under 17 and $500 for other dependents. Step 4(a) captures other income, 4(b) captures deductions beyond the standard deduction, and 4(c) is extra withholding per pay period. Enter positive amounts only in 4(c). Withholding is never negative on the form.

With one job and an up-to-date W-4, your federal withholding already tracks your actual tax. A raise alone does not require a new W-4, because the percentage method will withhold more automatically. Learn more about how the layers stack in our guide on federal and state taxes and how your paycheck gets calculated.

Bonus Withholding Lines

Bonuses and other supplemental wages often appear on their own line. For federal purposes, the default withholding on supplemental wages is a flat 22%, regardless of your bracket. That is a withholding rate, not the tax you owe. If you are in the 12% bracket, the extra 10 points come back at filing as a refund. If you are in a higher bracket, you may owe more when you file.

State and Local Withholding

State lines are labeled by state abbreviation, such as "TX" or "PA," followed by "SIT" for state income tax. The rules vary widely. Texas, Florida, Nevada, Washington, Tennessee, South Dakota, Alaska, New Hampshire, and Wyoming have no wage income tax, so no state income tax line appears. Flat-rate states include Pennsylvania at 3.07%, Illinois at 4.95%, Colorado at 4.4%, and Indiana at 2.95%. Ohio starts at 2.75% above $26,050 and North Dakota at 1.95% above $48,475, while California's top rate is 13.3% including its 1% surcharge over $1M.

Because state rates changed for 2026 in more than half of the states, check your state's current rate rather than relying on older figures. If your state or city has its own income tax, you will see a separate local line. For a state-specific walkthrough, see our California paycheck calculator, which explains how California's supplemental and disability lines differ from federal withholding.

FICA Lines: Social Security and Medicare

FICA on pay stub appears as two lines: "Social Security" (sometimes "OASDI") and "Medicare." Together they total 7.65% of wages for most employees, and your employer matches the same amount. The employer share does not appear on your stub, which is why your gross pay may look smaller than the cost of your job to the company.

Social Security (OASDI) is 6.2% of wages up to the 2026 wage base of $184,500. The most an employee pays is $11,439. Most people earning under the cap will see exactly 6.2% of gross on this line. If you have two jobs and each employer withholds on the full amount, you may have too much Social Security withheld, and you can recover the excess on your return.

Medicare is 1.45% of all wages with no cap. Above $200,000 for single filers, $250,000 married filing jointly, or $125,000 married filing separately, an Additional Medicare Tax of 0.9% applies. Your employer withholds the additional 0.9% once your year-to-date wages pass $200,000, even if your total tax ends up different.

FICA is not reduced by a traditional 401(k), but it is reduced by HSA and FSA contributions made through a cafeteria plan. That distinction matters when you audit a stub. If your FICA line equals 7.65% of gross pay and you have a 401(k), the numbers are behaving correctly. If you have an HSA through payroll and your Social Security line equals 6.2% of your full gross, your HSA contributions may not be set up as pre-tax.

Pre-Tax and Post-Tax Deductions Explained

Understanding pay stub deductions is the step that trips up most readers. Deductions come in two kinds: pre-tax, which lower the wages used for some or all of your tax calculations, and post-tax, which come out after taxes are computed.

Pay Stub Pre-Tax Deductions

Pre-tax deductions are typically set up through a Section 125 cafeteria plan. The common ones are:

• Traditional 401(k): reduces federal and most state income tax, but not Social Security or Medicare. The 2026 elective deferral limit is $24,500 for workers under 50, and $32,500 for workers 50 and older.
• Health, dental, and vision premiums: usually reduce income tax, Social Security, and Medicare, which makes them especially valuable.
• HSA contributions: reduce income tax and FICA. The 2026 limit is $4,400 for self-only coverage and $8,750 for family, plus a $1,000 catch-up at age 55 and older.
• Medical FSA: reduces income tax and FICA. The 2026 limit is $3,400, with a carryover of up to $680 if your plan allows it.
• Dependent care FSA: reduces income tax and FICA. The 2026 limit is $7,500, or $3,750 if married filing separately.
• Transit and parking benefits: pre-tax up to $340 per month for transit and a separate $340 per month for parking.

Because a 401(k) reduces only income tax, a stub with a 401(k) and no HSA will show a larger FICA line than a stub with an HSA of the same size. Compare the two side by side in the calculator if you are choosing between them.

Post-Tax Deductions

Post-tax deductions come out after tax is computed. Examples include Roth 401(k) contributions, life or disability insurance premiums that are not pre-tax, union dues in some cases, and garnishments such as child support or student loan wage garnishment. Garnishments often show up as a separate line with an order number, and your employer must follow the court order or agency notice. If a garnishment looks wrong, contact the agency or court listed on the notice, not your payroll team alone.

Overtime and the "No Tax on Overtime" Deduction

If your stub shows overtime, look at the rate. The FLSA-required premium half of time-and-a-half is deductible on your federal return for tax years 2025 through 2028. The deduction is capped at $12,500 for single filers and $25,000 for joint filers, and it phases out above $150,000 of MAGI, or $300,000 for joint filers. It reduces income tax only. FICA still applies to all overtime wages. Withholding does not change automatically, so the benefit usually arrives as a refund unless you file a new W-4.

Year-to-Date Totals and How to Use Them

The year-to-date column, usually labeled YTD, adds up every paycheck since January 1. Pay stub year to date totals are the best tool for checking whether your withholding is on track, because they show how much you have paid for the year so far.

Using the same worked example, here is what the YTD column should look like after 10 biweekly checks. Gross pay YTD is $28,846.20. 401(k) YTD is $1,442.31. Social Security YTD is $1,788.46. Medicare YTD is $418.27. Federal withholding YTD is $2,632.69. Small rounding differences between your stub and these figures are normal.

To use YTD totals, divide each year-to-date amount by the number of checks you have received, then compare the result with your per-check amount. If the averages match, the stub is internally consistent. If the federal YTD figure is much higher than expected, check whether a bonus or retroactive pay was taxed at the flat supplemental rate, which can temporarily inflate the withholding line.

YTD totals also let you check your Social Security wage base. If your Social Security YTD stops growing before the end of the year, you may have reached the $184,500 cap, which is unusual for most workers but common for high earners who change jobs mid-year.

If your YTD gross looks different from what you expect from a raise, see how the math works in our article on how much a $50,000 raise really adds to your paycheck. A raise only adds to your gross, and only the dollars above each bracket threshold are taxed at the higher rate.

Spotting Errors Before They Cost You: How to Verify Paycheck Withholding

Checking for errors is the most valuable habit you can build with pay stubs. Here is a practical process for how to verify paycheck withholding each time you get paid.

1. Confirm the basics. Your name, pay period, pay date, and hourly rate or salary should match your offer letter or most recent raise notice.
2. Check hours and overtime. Multiply hours by rate to confirm regular pay. For overtime, verify that hours above your threshold are paid at 1.5 times the regular rate.
3. Verify the FICA lines. Social Security should equal 6.2% of gross wages below the cap, and Medicare should equal 1.45% of gross. If one of these is off, check whether an HSA or FSA changed the base.
4. Compare federal withholding to your W-4. Use the NetPayGuide calculator with the same salary, filing status, and deductions. If your federal line differs by more than a small amount, check whether the W-4 on file reflects your current situation.
5. Confirm your state. Make sure the state line matches where you live and work, and that a state you left is no longer being withheld.
6. Check deductions against your elections. Your 401(k) percentage, HSA amount, and benefit premiums should match your enrollment confirmation.
7. Review YTD totals. Compare averages as described above.

Most errors fall into a few categories: a W-4 filed with the wrong filing status, a 401(k) percentage that did not update after an open enrollment change, a state line for a former address, or a missing pre-tax election that makes FICA look too high. If you find something, email payroll with the pay date and the line in question, and keep a copy. Payroll departments can usually correct a misapplied deduction in the next cycle. Errors in withholding that reduce your take-home pay are often fixed quickly once they are flagged.

Some readers also compare their payroll provider's output with a third-party check. If your company uses one of the major platforms, our ADP vs Gusto payroll comparison explains how different systems handle deductions, which can help you understand why two stubs for the same salary look different.

The Bottom Line

A pay stub is a short, consistent story: gross pay comes in, pre-tax deductions reduce the base for some taxes, federal, state, and FICA withholding come out, post-tax deductions follow, and net pay lands in your account. For a single Texas filer earning $75,000 with a 5% 401(k), the expected biweekly figures are $2,884.62 gross, $263.27 federal withholding, $178.85 Social Security, $41.83 Medicare, and $2,256.44 net. Your own numbers will differ based on your state, your elections, and your W-4, but the structure should be the same.

Your next step is to pull your most recent stub and check it line by line against the calculator. Plug in your salary, filing status, state, and each pre-tax deduction, and compare the result with the net pay on your stub. If the numbers are off by more than a rounding difference, check your W-4 and enrollment confirmations first, then contact payroll.

This is educational; talk to a tax pro for decisions that materially change your filing.

Frequently Asked Questions About Reading a Pay Stub

What is the difference between gross pay and net pay on a pay stub?

Gross pay is your total earnings for the pay period before any deductions or taxes. Net pay is what you actually receive after pre-tax deductions, federal, state, and FICA withholding, and post-tax deductions are subtracted. For a $75,000 salary paid biweekly, gross pay is $2,884.62 per check. Net pay depends on your deductions and state, and in the Texas example in this article it comes to $2,256.44.

Why is my federal withholding higher than I expected?

Federal withholding is based on your W-4 and the percentage method, not your final tax bill. A W-4 that lists you as single with no adjustments will withhold more than a W-4 that claims credits or married filing jointly status. A bonus taxed at the flat 22% supplemental rate can also make one check look high. You will get any excess back as a refund when you file, but you can adjust the W-4 if you want more money in each check.

Why does my 401(k) not reduce my Social Security tax?

A traditional 401(k) reduces income tax, but Social Security and Medicare are still calculated on your full wages. Only HSA and FSA contributions made through a cafeteria plan reduce FICA, along with income tax. This is why a stub with a 401(k) shows a Social Security line equal to 6.2% of gross pay.

What does YTD mean on a pay stub?

YTD stands for year to date. It is the running total of each line since January 1 of the current year. Use it to check whether your withholding is on pace, and compare your YTD averages with your current per-check amounts to spot inconsistencies.

How do I check if my Social Security tax is correct?

Multiply your gross wages for the pay period by 6.2%. The result should match the Social Security line on your stub as long as your year-to-date wages are below the 2026 wage base of $184,500. The maximum employee Social Security tax for 2026 is $11,439. If you have two jobs and each employer withheld on the full amount, you may have too much withheld and can recover the excess on your return.

What is the difference between pre-tax and post-tax deductions?

Pre-tax deductions, such as traditional 401(k) contributions, health premiums, HSA, and FSA contributions, reduce the wages used to calculate some taxes. Post-tax deductions, such as Roth 401(k) contributions and wage garnishments, are subtracted after taxes are computed. The key difference is that pre-tax deductions lower your taxable income, while post-tax deductions do not.

Does a raise require me to update my W-4?

With one job and an accurate W-4, a raise usually does not require a new form. The percentage method will withhold more federal tax automatically because your wages are higher. You may want to update the W-4 if your situation changed in other ways, such as a new dependent, a second job, or a spouse who started working.

How can I tell if my state tax withholding is right?

Compare the state income tax line on your stub with the amount NetPayGuide estimates for your state using the same salary, filing status, and pre-tax deductions. Some states, including Texas and Florida, have no wage income tax, so you should see no state line at all. If your state has a flat rate, such as Pennsylvania at 3.07%, the line should equal that rate applied to your taxable wages. Rates change, so check the current year's figures.

What should I do if I find an error on my pay stub?

Email your payroll department with the pay date, the line item in question, and your expected amount, then keep a copy of your message. Most corrections happen in the next pay cycle, and errors that reduce your pay are usually fixed quickly. If a deduction or garnishment looks wrong, check the notice or enrollment confirmation that authorized it before you contact payroll.

Is the overtime deduction shown on my pay stub?

No. The "No Tax on Overtime" deduction is taken on your federal income tax return, not on the pay stub. For tax years 2025 through 2028, the premium half of your overtime pay can be deducted up to $12,500 for single filers and $25,000 for joint filers, with phase-outs above $150,000 and $300,000 of MAGI. FICA still applies to overtime, and the benefit usually shows up as a refund.