Frequently Asked Questions About Paycheck Taxes

Your paycheck is less than your gross salary because of various deductions:

• Federal income tax - Based on your income level and filing status
• State income tax - Varies by state (some states have no income tax)
• FICA taxes - Social Security (6.2%) and Medicare (1.45%)
• Benefits deductions - Health insurance, retirement contributions, etc.
• Other deductions - Union dues, wage garnishments, etc.

Use our calculator to see exactly how much is deducted from your specific paycheck.

Our calculator provides estimates based on current federal and state tax rates. While it's designed to be as accurate as possible, the actual amount may vary due to:

• Individual circumstances and additional deductions
• Local taxes not included in the calculation
• Changes in tax laws throughout the year
• Employer-specific benefit deductions

For the most precise calculations, consult with a tax professional or use your employer's payroll system.

Gross pay is your total earnings before any deductions are taken out. This includes your salary, overtime, bonuses, and other compensation.

Net pay (take-home pay) is what you actually receive after all taxes and deductions are subtracted from your gross pay.

Example: If your gross pay is $4,000/month and total deductions are $1,200, your net pay would be $2,800.

Federal income tax uses a progressive tax system with different rates for different income levels:

Tax Rate	Single Filers	Married Filing Jointly
10%	$0 - $11,600	$0 - $23,200
12%	$11,601 - $47,150	$23,201 - $94,300
22%	$47,151 - $100,525	$94,301 - $201,050

Your employer uses IRS withholding tables and your W-4 information to estimate the tax to withhold from each paycheck.

The standard deduction is a fixed amount that reduces your taxable income. For 2025:

• Single filers: $13,850
• Married filing jointly: $27,700
• Married filing separately: $13,850
• Head of household: $20,800

Most people benefit from taking the standard deduction unless their itemized deductions (mortgage interest, charitable donations, etc.) exceed these amounts.

Nine states have no state income tax:

• Alaska
• Florida
• Nevada
• New Hampshire (only on interest and dividends)
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

If you live in one of these states, you'll only pay federal taxes and FICA taxes on your paycheck.

If you work in a different state than where you live, you may need to pay taxes to both states:

• Work state: Your employer typically withholds taxes for the state where you work
• Resident state: You may owe taxes to your home state as well
• Tax credits: Most states offer credits for taxes paid to other states to avoid double taxation

Some states have reciprocal agreements that eliminate this issue. Consult a tax professional for complex situations.

FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare:

• Social Security tax: 6.2% of wages up to $160,200 (2025 limit)
• Medicare tax: 1.45% of all wages (no limit)
• Additional Medicare tax: 0.9% on wages over $200,000 (single) or $250,000 (married)

Total FICA tax is 7.65% for most workers. Your employer also pays matching amounts.

Social Security tax has an annual wage cap. For 2025, you stop paying Social Security tax once your wages reach $160,200 for the year.

However, Medicare tax continues on all wages throughout the year with no cap.

If you have multiple jobs, each employer withholds Social Security tax separately, which might result in over-payment that you can claim as a credit when filing your tax return.

Overtime pay is typically calculated as:

• Time and a half: 1.5 times your regular hourly rate for hours over 40 per week
• Double time: 2 times your regular rate (varies by employer and state)

In our calculator:

1. Enter your regular hours and hourly rate
2. Click "Add Overtime"
3. Enter overtime hours and overtime rate (usually 1.5 x regular rate)

The calculator will automatically include overtime in your gross pay calculation.

Yes! Our calculator supports all common pay frequencies:

• Weekly: 52 paychecks per year
• Bi-weekly: 26 paychecks per year (every 2 weeks)
• Semi-monthly: 24 paychecks per year (twice per month)
• Monthly: 12 paychecks per year
• Daily: For daily wage calculations
• Yearly: For annual salary calculations

The calculator automatically adjusts tax calculations based on your selected pay frequency.

Marriage can significantly impact your taxes:

• Filing status: You can choose "Married Filing Jointly" or "Married Filing Separately"
• Tax brackets: Joint filers often have wider tax brackets, potentially lowering your overall tax rate
• Standard deduction: Increases to $27,700 for joint filers (2025)
• Withholding: Update your W-4 with your employer to reflect your new status

Use our calculator with both filing statuses to see which option works best for your situation.

Multiple jobs can complicate your tax situation:

• Withholding issues: Each employer withholds taxes as if it's your only job, potentially under-withholding
• Higher tax bracket: Combined income might push you into a higher bracket
• FICA caps: You might over-pay Social Security tax if total wages exceed $160,200

Solutions:

• Use the IRS Tax Withholding Estimator
• Increase withholding on your higher-paying job
• Make quarterly estimated tax payments
• Update your W-4 forms accordingly