How to Read Your Pay Stub: A Complete Guide
Most Americans receive a paycheck every two weeks — and most never fully understand what's on it. Your pay stub contains critical financial information: how much you earned, how much was withheld, and exactly where every dollar went. Understanding it takes less than 10 minutes and could save you from costly tax surprises.
This guide walks through every section of a typical US pay stub, with real examples based on a $75,000/year salary paid bi-weekly in 2026.
The Anatomy of a Pay Stub
Every US pay stub has the same core sections, though the exact layout varies by employer:
- Employee & Employer Info — your name, address, employer name, pay period dates
- Earnings — gross pay breakdown (regular, overtime, bonuses)
- Tax Deductions — federal, state, and FICA withholding
- Pre-Tax Deductions — 401(k), health insurance, HSA
- Post-Tax Deductions — Roth 401(k), life insurance, garnishments
- Net Pay — your take-home amount
- YTD Totals — cumulative year-to-date figures
Section 1: Earnings
The earnings section shows what you made before any deductions. For a $75,000 salary paid bi-weekly:
| Description | Hours | Rate | Current | YTD |
|---|---|---|---|---|
| Regular Pay | 80 | $36.06 | $2,884.62 | $17,307.72 |
| Overtime | 0 | $54.09 | $0.00 | $0.00 |
| Gross Pay | $2,884.62 | $17,307.72 |
💡 Gross pay = your salary ÷ 26 for bi-weekly employees. A $75,000 salary ÷ 26 pay periods = $2,884.62 per paycheck. Use our Salary Calculator to verify your own figure.
Section 2: Tax Deductions
This section shows all government-mandated withholdings:
| Tax | Current | YTD | Notes |
|---|---|---|---|
| Federal Income Tax | $389.61 | $2,337.66 | Based on W-4 + brackets |
| OASDI / Social Security | $178.85 | $1,073.10 | 6.2% of gross |
| Medicare | $41.83 | $250.98 | 1.45% of gross |
| State Income Tax (CA) | $144.23 | $865.38 | Varies by state |
| State SDI (CA) | $28.85 | $173.10 | State disability insurance |
| Total Taxes | $783.37 | $4,700.22 |
Federal Income Tax
This is the biggest variable on your pay stub. The amount withheld depends on your W-4 elections — your filing status (single, married, head of household) and any additional withholding you requested. The IRS tax tables determine the base amount.
If your federal withholding seems wrong, check your W-4 with HR. You can update it at any time and the new withholding takes effect on the next payroll cycle.
OASDI (Social Security)
OASDI stands for Old Age, Survivors, and Disability Insurance — the official name for Social Security. It's always 6.2% of your gross pay, up to the annual wage base ($184,500 in 2026). Once your YTD earnings hit this threshold, Social Security withholding stops for the rest of the year.
Medicare
Always 1.45% of gross pay with no wage cap. High earners (over $200,000 for single filers) pay an additional 0.9% surtax, which employers begin withholding once your wages exceed $200,000.
State Income Tax
Varies significantly by state. Nine states have no income tax (FL, TX, NV, WA, AK, WY, SD, TN, NH). Others range from a flat 3–5% to progressive rates up to 13.3% in California.
Section 3: Pre-Tax Deductions
These reduce your taxable gross pay, lowering your tax bill:
| Deduction | Current | YTD | Annual Limit (2026) |
|---|---|---|---|
| 401(k) Contribution | $288.46 | $1,730.76 | $23,500 |
| Health Insurance (medical) | $125.00 | $750.00 | No limit (employer plan) |
| Dental Insurance | $18.50 | $111.00 | No limit |
| HSA Contribution | $96.15 | $576.90 | $4,300 (self-only) |
| Total Pre-Tax | $528.11 | $3,168.66 |
💡 Pre-tax deductions save you money. If you contribute $288 to your 401(k) each paycheck, you're not just saving for retirement — you're also reducing your federal taxable income, which means you pay less in federal income tax right now.
Section 4: Net Pay
Net pay is what's left after everything above is subtracted from gross pay:
− $783.37 total taxes
− $528.11 pre-tax deductions
= $1,573.14 net pay (take-home)
That's your actual deposit. On a $75,000 salary in California with these deductions, you take home about $1,573 bi-weekly — or roughly $40,900/year.
Want to see your own net pay? Use our Take Home Pay Calculator or Income Breakdown tool.
Section 5: YTD (Year-to-Date) Totals
The YTD column shows cumulative totals since January 1. Use it to:
- Verify your W-2 at tax time — YTD totals on your last paycheck of the year should match Box 1 (wages) and Box 4 (SS withheld) on your W-2
- Track Social Security cap — when YTD gross hits $184,500, your OASDI withholding stops
- Monitor 401(k) contributions — make sure you don't accidentally exceed the $23,500 annual limit
- Spot errors early — if a deduction looks wrong, catch it before it compounds over the full year