Tax year 2026 · updated August 23, 2026 · engine estimates

401(k) vs take-home pay (2026)

A traditional 401(k) deferral lowers federal (and usually state) taxable wages, so income tax withholding falls — but Social Security and Medicare generally still apply to the deferred amount. Below is the same $80,000 California single sample at 0% and 10% using the Takehome Cash engine.

Your pay

Estimated take-home

$56,322.15

per paycheck

Annual net$56,322.15
Effective tax19.6%
FederalSocial SecurityMedicareState
ItemPaycheckAnnual
Gross$80,000.00$80,000.00
Federal income tax$7,010.00$7,010.00
Social Security$4,960.00$4,960.00
Medicare$1,160.00$1,160.00
State income tax$2,547.85$2,547.85
Total tax$15,677.85$15,677.85
Net / take-home$56,322.15$56,322.15

Estimate only — not tax advice or full tax software. 2026 federal brackets and a simplified state model. Omits local taxes, most credits, and year-to-date wage-base tracking. Confirm with your pay stub or a tax professional.

Ten percent of $80,000 is $8,000 deferred. That money is still yours in the plan; it is not “tax” on this page. Net take-home drops by less than $8,000 because federal and California tax are computed on the remaining wages. FICA is almost unchanged if you have no cafeteria-plan health premium.

Roth 401(k) is not modeled: Roth deferrals do not reduce federal wages. Employer match does not appear on the employee stub as cash, so it is omitted. Annual IRS elective-deferral limits can cap a high-percent election; we do not enforce the dollar cap in v1.

The calculator starts at 10% so you can drag the percent toward zero and watch federal and state lines move. Health premiums (section 125) reduce FICA as well as income tax — a different lever than 401(k). Estimates only, reviewed August 23, 2026.

Sample estimates

Sample State tax Federal + FICA Est. annual net
$80k CA single, 0% 401(k) $3,210.42 $14,890.00 $61,899.58
$80k CA single, 10% 401(k) $2,547.85 $13,130.00 $56,322.15

Engine estimates for tax year 2026 — not tax advice or a pay stub. Omits local taxes, most credits, and SDI/PFML. See methodology.

FAQ

Does a 401(k) reduce Social Security tax?

Usually no. Traditional elective deferrals stay in the Social Security and Medicare wage base. Pre-tax health premiums under a cafeteria plan generally reduce FICA wages.

What sample is shown?

$80,000 annual, California, single, 0% vs 10% traditional 401(k), no health premium, no extra withholding.

Is the 10% contribution gone?

It is withheld from the check and sent to the plan. This page reports cash take-home, not total compensation.