Paycheck Tax Calculator

What Taxes Are Deducted from Your Paycheck?

Every paycheck includes mandatory tax deductions at multiple levels: federal income tax, Social Security, Medicare, and state income tax (in most states). Enter your pay details in the calculator above to see each tax deduction itemized. Understanding why each tax exists, how it is calculated, and what it funds helps you interpret your pay stub accurately and recognize whether the amounts being deducted match what you should owe based on your income and filing status.

Federal Income Tax Withholding Explained

Federal tax is calculated using IRS Publication 15-T withholding tables based on your W-4 elections. The amount increases progressively with income: on $2,500 biweekly gross (single, standard): approximately $197 withheld. On $4,000: approximately $390. On $6,000: approximately $720. The withholding approximates your annual tax liability divided across pay periods. It is an estimate, not exact - your actual tax is calculated when you file your return, with any difference resulting in a refund (over-withheld) or balance due (under-withheld). Withholding is closest to accurate for single-job households with standard deductions and no unusual income.

Social Security Tax: The 6.2% Deduction

Social Security (OASDI) tax is a flat 6.2% on all wages up to the annual wage base ($168,600 in 2024). Your employer pays a matching 6.2%, totaling 12.4%. On $3,000 biweekly: $186 deducted every paycheck. Annual maximum employee contribution: $10,453.20. Once your year-to-date wages reach $168,600, Social Security withholding stops for the remainder of the year. A worker earning $200,000: SS deductions stop in late October, producing approximately $400 more per biweekly check for November and December. This is not a bonus - it is the cessation of a tax that has already collected the maximum amount.

Medicare Tax: The 1.45% (Plus Surtax) Deduction

Medicare (HI) tax is 1.45% on all wages with no cap. Your employer matches at 1.45%, totaling 2.9%. On $3,000 biweekly: $43.50 deducted. Unlike Social Security, Medicare has no wage base limit - every dollar you earn is subject to the 1.45% deduction. An Additional Medicare Tax of 0.9% applies to wages above $200,000 (single) or $250,000 (married filing jointly). This surtax is employee-only (no employer match). A worker earning $300,000: standard Medicare on all wages ($4,350) plus 0.9% surtax on $100,000 above threshold ($900) = $5,250 total annual Medicare tax.

State Income Tax Deductions

41 states plus DC levy income tax on wages. Nine states have no income tax: AK, FL, NV, NH (limited), SD, TN, TX, WA, WY. State tax structures vary: flat rate states (IL 4.95%, NC 4.5%, MI 4.25%) deduct the same percentage regardless of income. Progressive rate states (CA 1-13.3%, NY 4-10.9%, NJ 1.4-10.75%) deduct higher percentages at higher incomes. On a $75,000 salary: state tax ranges from $0 (TX, FL) to $3,600 (CA) to $4,500 (NY with city). The state you live in (not where you work, in most cases) determines which state tax applies to your paycheck.

FICA Tax: The Combined Social Security and Medicare Line

Some pay stubs show Social Security and Medicare separately. Others combine them as "FICA" (Federal Insurance Contributions Act): 7.65% total (6.2% SS + 1.45% Medicare). On $3,000 biweekly gross: $229.50 FICA deducted. Annual FICA on $75,000: $5,737.50. On $100,000: $7,650. FICA is the most predictable paycheck deduction because it is a flat percentage (no brackets, no W-4 adjustments). Self-employed individuals pay both the employee and employer portions (15.3% total) through self-employment tax - effectively double the FICA that W-2 employees see on their pay stubs.

Local and City Payroll Taxes

Some jurisdictions levy additional payroll taxes beyond state income tax. New York City: 3.078-3.876% city income tax. Philadelphia: 3.75% wage tax for residents. Many Ohio cities: 1.0-2.5% municipal income tax. Oregon transit taxes: 0.1% in Portland metro. These local taxes appear as additional pay stub lines and can significantly increase the total tax deduction, particularly in cities like NYC where the combined state + city rate approaches 10%. If you live and work in different taxing jurisdictions, your pay stub may show withholding for the work city with a credit system applied on your tax return for your home jurisdiction.

Why Does Your Tax Withholding Seem High?

Common reasons for seemingly high withholding: your W-4 is set to Single when you could file as Married or Head of Household (wider brackets, lower withholding). You have not claimed the dependent credit on your W-4 ($2,000/child reduces withholding). Your employer is withholding for a state you no longer live in. You requested extra withholding on Line 4c and forgot. A bonus or overtime paycheck triggered the 22% supplemental withholding rate on the entire supplemental amount. Review your most recent W-4 on file with your employer and compare the per-paycheck withholding against IRS Publication 15-T tables to identify the cause.

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