Why is my paycheck less than I expected?

Updated October 8, 2026 · WageSignals

What you earn (gross) and what lands in your account (take-home) never match. At $22 an hour and 80 hours, gross pay is $1,760.00 and $1,498.01 reaches your account in a state with no income tax. Here is why, from most to least common.

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1. Federal income tax withholding

Your employer sets aside part of every paycheck for federal income tax. In the example it is $127.35 (7.2% of gross). It is not a flat rate: your pay for the period is annualized and run through the IRS tables, so a bigger check pays a higher percentage.

It depends on your Form W-4. On the same pay, someone who checked "married filing jointly" would have $52.15 withheld instead of $127.35.

2. Social Security and Medicare (FICA)

They are 6.2% and 1.45% of your wages: $109.12 and $25.52 in the example. They are always withheld, from the first dollar, and do not depend on your W-4.

3. State and city taxes

Most states charge their own tax on wages, and some cities and counties do too (New York City, Philadelphia, most of Ohio and Pennsylvania). Several states add programs such as disability insurance (SDI) or paid family leave.

Nine states have no state tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

4. Your deductions: health insurance, 401(k) and more

If your employer deducts health or dental insurance, a 401(k) or an HSA, that comes out before taxes are figured. They lower your check, but they also lower the tax you pay.

5. Why this week was less than last week

Fewer hours or less overtime than the previous period.

A bonus or extra hours in the previous check made it look higher than normal.

A deduction changed: health insurance started, your 401(k) contribution went up or a garnishment began.

January: tax tables and some insurance premiums change.

6. Why a raise feels smaller than it is

A raise does not make your whole pay taxed at a higher rate: only the new part pays the higher rate. Your check always goes up with a raise, but by less than the gross raise, because federal tax, FICA and state tax come out of every extra dollar.

Frequently asked questions

What percentage of my paycheck goes to taxes?

It depends on how much you earn, your W-4 and where you live. In the $22 an hour example in a state with no income tax it is 14.9%. The calculator shows it for your case.

Is too much being taken out?

If you get a large refund at tax time, too much was withheld during the year; if you owe, too little. You can adjust your W-4 with your employer at any time.

Official sources

General information, not tax or legal advice.