Payroll Tax Calculator
Calculate your paycheck after federal, state, and FICA taxes
Calculate Payroll Taxes
Your total earnings before taxes
How often you get paid
Your tax filing status
From your W-4 form
Pre-tax retirement contribution
Extra amount withheld per year
Your state's income tax rate
City or county income tax
Standard employee FICA tax is 7.65% (6.2% Social Security + 1.45% Medicare)
Tax Calculation Results
Tax Breakdown
Per Pay Period
Annual take-home pay
Tax Insights
Example Calculation
Single Filer Example
Annual Salary: $50,000
Filing Status: Single
Pay Frequency: Bi-weekly (26 pay periods)
State Tax Rate: 5%
Tax Calculation
• Social Security (6.2%): $3,100
• Medicare (1.45%): $725
• Federal Income Tax: ~$4,200
• State Income Tax (5%): $2,500
Total Taxes: ~$10,525
Take-Home Pay: ~$39,475 annually ($1,518 per paycheck)
Pay Period Breakdown
| Period | Net Pay |
|---|---|
| 1 | $40,085.00 |
FICA Tax Components
Payroll Tax Tips
Increase 401(k) contributions to reduce taxable income
Adjust W-4 allowances to control withholding
Employer matches your FICA contributions
Review withholding annually or after life changes
State and local taxes vary significantly by location
Understanding Payroll Taxes
What are Payroll Taxes?
Payroll taxes are taxes withheld from your paycheck by your employer. They include federal income tax, FICA taxes (Social Security and Medicare), and often state and local income taxes. Your employer also pays matching FICA taxes on your behalf.
FICA Taxes Explained
- •Social Security (6.2%): Funds retirement benefits, capped at $160,200 wage base
- •Medicare (1.45%): Funds healthcare for seniors, no wage cap
- •Additional Medicare (0.9%): For high earners over $200K/$250K threshold
Federal Income Tax
Federal income tax is progressive, meaning higher income is taxed at higher rates. The amount withheld depends on your gross pay, filing status, and W-4 allowances. Standard deductions and allowances reduce your taxable income.
How to Reduce Payroll Taxes
- ✓Contribute to pre-tax retirement accounts (401k, 403b, etc.)
- ✓Use HSA (Health Savings Account) for medical expenses
- ✓Participate in FSA (Flexible Spending Account) programs
- ✓Review and optimize your W-4 withholding allowances
Effective Tax Rate vs. Marginal Tax Rate
Effective Tax Rate
The percentage of your total income that goes to taxes. This is calculated by dividing total taxes paid by your gross income. It represents your actual tax burden.
Marginal Tax Rate
The tax rate on your last dollar of income. Because the U.S. has a progressive tax system, you pay different rates on different portions of your income as you move through tax brackets.
Important Considerations
- • Employer Match: Your employer also pays 7.65% FICA taxes on your behalf
- • State Variations: State income tax rates vary from 0% to over 13%
- • Local Taxes: Some cities and counties impose additional income taxes
- • W-4 Form: Update your W-4 after major life events (marriage, children, etc.)
- • Tax Refunds: Large refunds mean you over-withheld; adjust to take home more each paycheck