How Federal Payroll Taxes Work
Every paycheck is reduced by several mandatory deductions. Federal income tax is calculated using progressive tax brackets and depends on your filing status, allowances, and annual income. FICA taxes (Social Security at 6.2% and Medicare at 1.45%) are flat rates applied to all wages up to certain limits.
For 2024–2025, the Social Security wage base is $168,600. Wages above this amount are exempt from the 6.2% Social Security tax (but still subject to Medicare). High earners also pay an Additional Medicare Tax of 0.9% on wages over $200,000 (single) or $250,000 (married filing jointly).
2024 Federal Income Tax Brackets (Single)
| Taxable Income | Tax Rate |
|---|---|
| $0 – $11,600 | 10% |
| $11,601 – $47,150 | 12% |
| $47,151 – $100,525 | 22% |
| $100,526 – $191,950 | 24% |
| $191,951 – $243,725 | 32% |
| $243,726 – $609,350 | 35% |
| Over $609,350 | 37% |
Note: This calculator provides estimates only. Actual withholding depends on your W-4 elections, credits, and other factors. Consult a tax professional for precise calculations.