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DEFERRAL, NOT A CREDIT
What a 401(k) does to a 2026 paycheck.
The deferral comes off the income-tax wage. It does not come off the FICA wage. That single distinction is why the net-pay increase is smaller than the tax bracket you are in.
The employee elective deferral limit for 2026 is $24,500, with a catch-up on top for workers 50 and older. The calculator will not stop you from typing more than that. Type what the plan actually takes.
$95,000 salary, single, $6,000 deferred
With no deferral, federal taxable wages are $95,000. The standard deduction takes them to $78,900, and federal income tax is about $12,070. Social Security is $5,890 and Medicare is $1,377.50. With a $6,000 traditional deferral, the income-tax wage is $89,000 and federal tax falls by the tax on that $6,000, most of it inside the 22% band, so roughly $1,320 less federal tax. Social Security and Medicare do not fall. Take-home drops by about $6,000 minus $1,320, because the rest of the $6,000 is in the account, not in the check.
A Roth deferral does the opposite for the current year: it does not reduce the income-tax wage. Do not put Roth dollars in the 401(k) box on the paycheck calculator.
State tax usually follows the federal deferral for a traditional contribution. California in our calculator does. A flat rate you type is applied to wages after the deferral. Local taxes and employer matches are outside the page. The match is not your deferral and it is not in your paycheck.
Questions
Does the employer match show up in take-home pay?
No. A match goes to the account. It is not withheld and it is not added to the check.
What about the catch-up?
The $24,500 limit is the base employee deferral for 2026. Catch-up contributions for age 50 and older are allowed on top. Enter the total you defer.
The cash you give up is smaller than the deferral
On a single filer’s $95,000 salary, federal income tax with no deferral is about $12,070. Defer $6,000 and the income-tax wage becomes $89,000. Most of that $6,000 would have been taxed at 22%, so federal tax falls by about $1,320. Social Security and Medicare do not fall. Take-home drops by about $4,680, and $6,000 is in the account. The missing $1,320 is the current-year tax you did not pay. A Roth deferral does not produce that $1,320. Do not type Roth dollars into the traditional box.
The 2026 employee deferral limit is $24,500 before any catch-up. The calculator will not stop you at that limit. An employer match never appears in the check. It is not withheld and it is not added.
The 2026 limit is not a target
$24,500 is the most an employee under 50 can defer into a 401(k) in 2026. Deferring less is normal. Deferring the whole limit from a $60,000 salary is 40% of pay, which many plans will not allow and which this calculator will still compute if you type it. Catch-up contributions for age 50 and older sit on top of $24,500. Type the total the plan actually takes, not the IRS maximum, unless you are on track to hit it.
A match of 4% on $95,000 is $3,800 in the account. It is not in the take-home figure and it is not subtracted from the check. Do not add it to the deferral box or you will understate the tax you still owe on that match-free wage.