How we calculate your take-home pay

The calculators show what your employer withholds from each paycheck, using the same official formulas payroll systems use. Rates current as of October 9, 2026.

Federal income tax

We follow IRS Publication 15-T (2026), Worksheet 1A, for a 2020 or later Form W-4. Your pay per paycheck is annualized, then reduced by $8,600 ($12,900 if married filing jointly). The 2026 annual percentage method table for your filing status gives the yearly amount, which is divided by your number of paychecks. Your W-4 Step 3 dependents amount is subtracted and any Step 4(c) extra withholding is added. Traditional 401(k) contributions and health premiums paid through a Section 125 plan are taken out before this tax.

Social Security and Medicare

Social Security is 6.2% of wages up to $184,500 in 2026. Medicare is 1.45% of all wages, plus 0.9% Additional Medicare Tax on wages above $200,000. Health premiums reduce these wages; 401(k) contributions do not (IRS Publication 15 and 15-B). When your salary passes the Social Security limit, the per-paycheck amount we show is the yearly average.

Ohio income tax

We use the Ohio Department of Taxation's withholding formula effective August 1, 2026. Taxable wages are your annual wages minus$650 for each exemption on your Ohio IT 4. Withholding is 1.6% of taxable wages up to$26,050, then $416.80 plus 2.99% of the amount over $26,050, and above$100,000 it is $2,627.91 plus 3.4% of the excess. Like federal tax, it is figured after 401(k) and health premiums.

Ohio city income tax

678 Ohio cities and villages charge a municipal income tax. Your employer withholds the rate of the city where you work, on your "qualifying wages", which Ohio law defines as Medicare wages (Ohio Revised Code 718.01 and 718.03). That means a 401(k) contribution does not reduce your city tax, while health premiums paid through a Section 125 plan do. If you live in a different city that also has an income tax, it may tax you as well, after any credit it gives for tax paid to your work city. Credits vary by city, so the calculator shows a reminder instead of a number.

Ohio school district income tax

214 Ohio school districts charge an income tax, based on where you live. In traditional-base districts it is withheld on the same wages as Ohio income tax, after IT 4 exemptions. In earned-income districts it is withheld on all wages with no exemptions (2026 Ohio Employer and School District Withholding Tax Filing Guidelines).

Pennsylvania income tax

Pennsylvania withholds a flat 3.07% of compensation, with no exemptions (PA Department of Revenue). Unlike federal tax, 401(k) contributions are taxed. Health premiums paid through a qualifying Section 125 plan are not (PA Personal Income Tax Guide, Gross Compensation).

Pennsylvania local earned income tax

Rates come from the Department of Community and Economic Development's tax register, which lists every municipality and school district combination by PSD code. Your employer withholds the higher of your home's total resident rate (municipality plus school district) and the non-resident rate where you work (DCED, Act 32 FAQ). The tax uses the same wages as Pennsylvania income tax, so 401(k) contributions are included.

Local services tax

The place you work charges a flat yearly local services tax, usually $52 (Harrisburg and Scranton charge $156). When it is more than $10 it is taken in equal parts from each paycheck. If you earn less than $12,000 a year there (some places set a higher limit), you can file an exemption certificate with your employer; until you do, it is withheld, so the calculator shows it and adds a reminder (DCED, Local Withholding Tax FAQs).

Philadelphia Wage Tax

Philadelphia residents pay the resident rate wherever they work; people who work in Philadelphia and live elsewhere pay the non-resident rate instead of their home earned income tax (City of Philadelphia). The Wage Tax is charged on total pay: 401(k) contributions and Section 125 health premiums do not reduce it (City of Philadelphia). If your home rate is higher than the non-resident rate, your home tax collector may bill the difference; the calculator notes this.

Pennsylvania unemployment tax

Employees pay 0.07% of all wages, with no cap (PA Department of Labor & Industry). We apply it after Section 125 health premiums and before 401(k) contributions.

Ohio withholding vs. the tax you owe

Ohio's 2026 income tax is 0% on the first $26,050 of taxable income and 2.75% above it (House Bill 96). The withholding formula takes more than that. For a single person earning $60,000 with no exemptions, Ohio withholding comes to about $1,432 a year, while the tax on the same wages is roughly $934 before exemptions and credits. The difference usually comes back as a refund when you file. We show withholding because that is what your pay stub shows.

How we test it

• Every rule above is checked against the official source document before it goes into the calculator.
• An independent reference calculation checks dozens of paychecks to the cent, across every filing status and pay frequency.
• We compared 10 Ohio paychecks with PaycheckCity, a widely used payroll calculator, covering 8 cities, a 401(k), health premiums and a school district. All 10 matched to the cent.
• We did the same for 10 Pennsylvania paychecks in 7 municipalities, including the Philadelphia Wage Tax for residents and commuters, the local services tax and a 401(k). All 10 matched to the cent.

What the calculator does not cover yet

• Credits a home city gives for tax paid to your work city.
• Residents of Indiana, Kentucky, Michigan, Pennsylvania or West Virginia who work in Ohio (they are exempt from Ohio state tax).
• Working in a second city for part of the year, joint economic development districts, and bonuses.
• Pennsylvania low-income exemptions are shown as reminders rather than applied, because they require an exemption certificate.
• Pennsylvania school district tax on unearned income, Philadelphia's income-based Wage Tax refund, and people who live in another state.
• W-4 Step 2 (multiple jobs) and Step 4(a) and 4(b) amounts, and 401(k) catch-up contributions.

Data sources and updates

• City and school district rates: Ohio Department of Taxation, The Finder rate files.
• Ohio withholding: Employer Withholding Taxes, Optional Computer Formula (effective August 1, 2026).
• Federal: IRS Publications 15, 15-T and 15-B (2026).
• City populations: US Census Bureau, Vintage 2025 estimates.

We download the state rate files each month and rebuild the site. Federal and state withholding rules are updated when the IRS or Ohio publishes new tables. Found something wrong? Email hello@localtakehomepay.com and we will check it.