Originally published at https://pay.thicket.sh/blog/how-to-read-a-pay-stub.
By Jamie Reeves, Personal Finance Writer
A pay stub reads top to bottom in four blocks: gross pay (everything you earned before deductions), pre-tax deductions (401(k), HSA, health premiums that lower your taxable wages), taxes (federal income tax, Social Security, Medicare, and state/local tax), and post-tax deductions (Roth 401(k), garnishments). What is left is your net pay — the amount deposited. Every line shows both a current-period figure and a year-to-date (YTD) running total.
Most people glance at the net-pay number and file the stub away. But a pay stub is the single best record of what you actually earn and where it goes — and reading it properly is how you catch withholding errors, confirm your benefits, and prove your income. Here is every line decoded.
Block 1: Gross Pay (What You Earned)
Gross pay is your total earnings before anything is taken out. On an hourly stub it breaks into regular hours × rate, plus any overtime (1.5x over 40 hours a week), plus bonuses, commissions, or tips. On a salaried stub it is simply your annual salary divided by the number of pay periods. This is the number lenders and landlords ask for, and it is the starting point for everything below. The distinction between this figure and your take-home is covered in full in gross pay vs net pay.
Block 2: Pre-Tax Deductions (Taken Out First)
These come out before taxes are calculated, which lowers your taxable wages and your tax bill. Common lines and their abbreviations:
- 401(k) / 403(b): traditional retirement contributions, capped at $23,500 in 2026.
- HSA / FSA: health savings or flexible spending account contributions.
- Med / Dental / Vis: pre-tax health, dental, and vision insurance premiums. Because these reduce taxable income, the wages the tax lines are computed on (sometimes shown as “taxable gross”) are lower than your total gross pay.
Block 3: Taxes (The Withholding Lines)
This is where the confusing abbreviations live. Decoded:
On the stubWhat it is2026 rateFED / FIT / Fed Income TaxFederal income tax withholding10%–37% (bracket-based)Fed OASDI/EESocial Security (employee share)6.2% to $184,500 wage baseFed MED/EEMedicare (employee share)1.45% (+0.9% over $200K)FICAOASDI + Medicare combined7.65%SIT / State TaxState income tax withholding0%–13.3% by stateSDI / LocalState disability or local/city taxVaries
“EE” marks the employee share; some stubs also print an “ER” employer share for reference, which is not deducted from you. For the full breakdown of what each tax takes, see how much taxes are taken out of my paycheck.
Block 4: Post-Tax Deductions and Net Pay
A few deductions come out after taxes are figured: Roth 401(k) contributions, wage garnishments, union dues, and after-tax insurance. Subtract these and the pre-tax deductions and the taxes from gross pay, and you get net pay — the amount actually deposited in your account. The formula on every stub is: Net = Gross − pre-tax deductions − taxes − post-tax deductions. Estimate your own net for any salary and state with the take-home pay calculator.
The YTD Column: Your Running Totals
Nearly every line shows two numbers — the amount for this pay period and the year-to-date (YTD) total since January 1. YTD figures are how you verify caps and catch errors:
- Social Security YTD should stop growing once wages hit the $184,500 wage base.
- 401(k) YTD should not exceed the $23,500 annual limit.
- Gross YTD should track your salary pace — roughly half your salary by mid-year. At year-end, your final YTD taxable gross should reconcile with Box 1 of your W-2. If it does not, something is off — our guide to how to read a W-2 shows exactly how the two documents line up.
Worked Example: A $75,000 Salaried Biweekly Stub
A $75,000 salary paid biweekly is $2,884.62 gross per check (26 checks). With a 5% traditional 401(k) contribution and no state income tax, a single pay period looks like this:
LineRateThis periodGross pay—$2,884.62401(k) (pre-tax)5%−$144.23Fed OASDI/EE (Social Security)6.2%−$178.85Fed MED/EE (Medicare)1.45%−$41.83Federal income tax~10.5% eff.−$287.00*Net pay—$2,232.71*
Note that Social Security and Medicare are charged on the full $2,884.62, but federal income tax is figured after the $144.23 pre-tax 401(k) is removed — that is the pre-tax advantage in action.
Sources and Methodology
Payroll tax rates and the employee/employer share definitions: IRS Publication 15 (Circular E), Employer’s Tax Guide. Social Security wage base and OASDI/Medicare rates: Social Security Administration — Contribution and Benefit Base. Pay-record requirements (no federal pay-stub mandate; state rules vary): US Department of Labor — FLSA Recordkeeping. 401(k) contribution limit: IRS Retirement Topics. Last updated July 16, 2026.
Frequently Asked Questions
Read a pay stub in four blocks. First, gross pay — your total earnings before anything is taken out (regular hours, overtime, bonuses). Second, pre-tax deductions like a traditional 401(k) or HSA, which lower your taxable wages. Third, taxes — federal income tax, Social Security (often labeled OASDI), Medicare, and state/local income tax. Fourth, post-tax deductions such as a Roth 401(k) or garnishments. What is left is your net pay, the amount actually deposited. Every line also shows a current-period figure and a year-to-date (YTD) running total.YTD stands for 'year-to-date' — the running total of that line item from January 1 through the current pay period. Every earnings and deduction line usually shows two numbers: the amount for this specific paycheck and the YTD total for the year so far. YTD figures matter because they track progress toward annual caps: Social Security stops at the $184,500 wage base, 401(k) contributions cap at $23,500 in 2026, and your YTD gross should roughly match your salary pace. Comparing your final YTD numbers to your W-2 is a fast way to catch payroll errors.These are your payroll taxes. OASDI (Old-Age, Survivors, and Disability Insurance) is Social Security, withheld at 6.2% of wages up to the annual wage base. MED or 'Fed MED/EE' is the Medicare tax, 1.45% of all wages. FICA is the umbrella term for the two combined, totaling 7.65%. You may also see 'Fed OASDI/EE' and 'Fed MED/EE,' where 'EE' means the employee share. Some stubs list an employer share ('ER') for reference, but that is paid by your employer, not deducted from you.The gap between gross and net is the stack of deductions on your stub. A typical US worker keeps about 70-85% of gross pay after federal income tax (10-37%), Social Security (6.2%), Medicare (1.45%), state income tax (0-13.3%), and any benefit deductions like health premiums or 401(k) contributions. Pre-tax deductions actually cut your tax bill because they lower the wages that get taxed, while post-tax deductions come out after taxes are figured. If the gap looks wrong, check your tax withholding lines and your benefit elections first.There is no federal law requiring a pay stub — the Fair Labor Standards Act only requires employers to keep accurate pay records, not to hand them to you. But most states require it. Some mandate a written or printed stub, others allow electronic access, and a handful (like Florida and Alabama) have no requirement at all. Where a stub is required, it generally must show gross wages, hours, all deductions, and net pay. Even where it is optional, employers almost always provide one because it is the standard proof of income for loans and rentals.Verify four things. First, confirm your hours and pay rate produce the gross pay shown. Second, check that pre-tax deductions (401k, HSA, health premiums) match what you elected. Third, sanity-check the tax lines: Social Security should be 6.2% of gross and Medicare 1.45%, up to the wage base. Fourth, follow the YTD totals over a few checks to make sure they add up and that no deduction has quietly changed. If your YTD gross by year-end does not match your salary, or the numbers do not reconcile with your W-2 Box 1, raise it with payroll immediately.
See Every Line on Your Own Paycheck
Enter your salary and state to see gross pay, each tax, and your net take-home broken out line by line — the same structure as your pay stub. Free and instant.
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