The federal income tax is only half the story. For tax year 2026 the IRS applies seven progressive bands from 10% to 37%, but only the dollars inside each band face that band's rate — a $70,000 single filer never pays 22% on the whole salary, only on the slice above $48,475. On top of federal tax, every employee pays FICA: 6.2% Social Security on wages up to the 2026 wage base (about $184,500) and 1.45% Medicare on all wages, plus 0.9% Additional Medicare Tax above $200,000. State income tax then adds anything from 0% in Texas, Florida and six other states to 13.3% in California — which is why our simulator asks for your state first.
Standard deduction, filing status and what 2026 changes
Most filers take the standard deduction (roughly $15,500 single / $31,000 joint for 2026 after inflation adjustment) rather than itemising. Filing status reshapes every threshold: joint brackets are roughly double single, head-of-household sits between, and the child tax credit (up to $2,000 per qualifying child, partly refundable) directly cuts the final bill. Because federal bands, the standard deduction and the Social Security wage base are all inflation-indexed, 2026 fiscal drag at federal level is modest — the stealth rises happen in states that do not index.
Democrats vs. Republicans: what the platforms mean for your paycheck
Democratic proposals consistently push in one direction: higher top rates or surcharges on very high incomes (historically 39.6% plans, millionaire surtaxes, expanded child tax credit and earned-income support), which raises net pay for low- and middle-income families through credits while trimming top-bracket take-home. Republican proposals push the other way: lower marginal rates across the board, a bigger standard deduction and lower capital-gains exposure, which lifts monthly net most visibly for middle- and upper-middle earners. Both sides routinely promise to extend or repeal parts of the 2017 Tax Cuts and Jobs Act provisions now expiring — the single largest swing factor in the simulator is whether those lower bands survive.
Concretely: a single Texan on $80,000 keeps noticeably more under a lower-rate scenario (the 22% band does the heavy lifting), while a Californian family on $65,000 with two children gains more from an expanded child credit than from any rate cut. Select each platform in the calculator with your own state, status and 401(k) to see which channel dominates your payslip.
Fiscal drag, inflation and the state trap
Federal indexation protects you only partially: if your raise matches 3% inflation and bands move 3%, your effective rate is flat. States without indexation quietly push you upward every year. High-tax states also phase out deductions sooner, so a New Yorker crossing $100,000 can face a combined marginal bite above 40% while a Floridian at the same salary stays near 22–24%. Always compare scenarios at your state, not the national average.
Worked example and verification
Single filer, $75,000 gross, Texas, standard deduction (~$15,500): taxable ≈ $59,500 → federal tax ≈ $8,400 (11.2% effective) + FICA ≈ $5,700 → net ≈ $60,900 (≈ $5,075/month) before health/401(k). Reproduce this against the IRS Tax Withholding Estimator; agreement within rounding confirms the engine. Our figures exclude pre-tax 401(k), HSA and employer health deductions you configure above — each lowers the taxable base dollar-for-dollar. Outputs are educational simulations, not filing advice.
State spotlight: why California, Texas and New York are different planets
Take three $100,000 earners. The Texan pays zero state income tax: federal (~$13,800) + FICA (~$7,650) leaves roughly $78,500. The Californian faces a 9.3–12.3% state schedule on top: state tax ≈ $6,600, combined net ≈ $71,500 — a $7,000 annual gap for identical work, before California's higher sales and property taxes. The New Yorker adds state (~6.5%) plus New York City tax (~3.5%): combined net ≈ $70,000. Party scenarios interact with this geography: federal rate cuts are worth most where state taxes are lowest (more income remains in federal bands), while SALT-cap relief (the $10,000–$40,000 deduction cap on state taxes, the most negotiated line in Congress) is worth most in California, New York and New Jersey. Always run the simulator with your state — national averages lie by $5,000+.
Overtime, bonuses, 401(k) and HSAs: where extra dollars really go
Not all income is equal. Pre-tax 401(k) contributions (up to $23,500 + $7,500 catch-up for 2026) and HSA dollars escape federal tax, FICA (HSA) and usually state tax — a $10,000 401(k) contribution saves a 22%-band worker ~$2,200 federal plus ~$0–$1,000 state. Bonuses are withheld at a flat 22% federal (37% above $1M) but taxed at your marginal rate at filing — big bonus, small refund surprise. Overtime stacks fully on top: an extra $5,000 lands ~$3,400–$3,800 after tax depending on band and state. Tip income, gig income (self-employment tax 15.3%!) and RSU vesting each carry traps the standard engine flags. Configure deductions honestly above: each pre-tax dollar shifts the whole bracket computation, and party scenarios that expand HSA/401(k) limits compound the gain year after year.
How to use the simulator before you vote: a three-minute protocol
First, enter last year's gross and your real state, status and dependents — record the baseline monthly net. Second, replay the identical inputs under each party scenario and write down the monthly deltas; ignore national commentary and trust only your row. Third, divide each delta by 12 and by your gross to separate permanent schedule gains from one-year credits, then ask: does the gain survive three years of normal raises (fiscal drag test)? If a scenario's advantage evaporates under 3% annual wage growth with frozen thresholds, it is a sugar rush, not a reform. Bring your numbers to the booth.