**Federal Paycheck Calculator**

**Federal Paycheck Quick Facts**

- Federal income tax rates range from 10% up to a top marginal rate of 37%.
- The U.S. real median household income (adjusted for inflation) in 2021 was $70,784.
9 U.S. states don't impose their own income tax for tax year 2022.

**How Your Paycheck Works: Income Tax Withholding**

When you start a new job or get a raise, you’ll agree to either an hourly wage or an annual salary. But calculating your weekly take-home pay isn’t a simple matter of multiplying your hourly wage by the number of hours you’ll work each week, or dividing your annual salary by 52. That’s because your employer withholds taxes from each paycheck, lowering your overall pay. Because of the numerous taxes withheld and the differing rates, it can be tough to figure out how much you’ll take home. That’s where our paycheck calculator comes in.

Tax withholding is the money that comes out of your paycheck in order to pay taxes, with the biggest one being income taxes. The federal government collects your income tax payments gradually throughout the year by taking directly from each of your paychecks. It's your employer's responsibility to withhold this money based on the information you provide in your Form W-4. You have to fill out this form and submit it to your employer whenever you start a new job, but you may also need to re-submit it after a major life change, like a marriage.

If you do make any changes, your employer has to update your paychecks to reflect those changes. Most people working for a U.S. employer have federal income taxes withheld from their paychecks, but some people are exempt. To be exempt, you must meet both of the following criteria:

- In the previous tax year, you received a refund of all federal income tax withheld from your paycheck because you had zero tax liability.
- This year, you expect to receive a refund of all federal income tax withheld because you expect to have zero tax liability again. If you think you qualify for this exemption, you can indicate this on your W-4 Form.

### Federal Top Income Tax Rate

Year | Rate |
---|---|

2022 | 37.00% |

2021 | 37.00% |

2020 | 37.00% |

2019 | 37.00% |

2018 | 37.00% |

2017 | 39.60% |

2016 | 39.60% |

2015 | 39.60% |

2014 | 39.60% |

2013 | 39.60% |

2012 | 35.00% |

When it comes to tax withholdings, employees face a trade-off between bigger paychecks and a smaller tax bill. It's important to note that while past versions of the W-4 allowed you to claim allowances, the current version doesn't. Additionally, it removes the option to claim personal and/or dependency exemptions. Instead, filers are required to enter annual dollar amounts for things such as total annual taxable wages, non-wage income and itemized and other deductions. The new version also includes a five-step process for indicating additional income, entering dollar amounts, claiming dependents and entering personal information.

One way to manage your tax bill is by adjusting your withholdings. The downside to maximizing each paycheck is that you might end up with a bigger tax bill if, come April, you haven't had enough withheld to cover your tax liability for the year. That would mean that instead of getting a tax refund, you would owe money.

If the idea of a big one-off bill from the IRS scares you, then you can err on the side of caution and adjust your withholding. Each of your paychecks may be smaller, but you’re more likely to get a tax refund and less likely to have tax liability when you fill out your tax return.

Of course, if you opt for more withholding and a bigger refund, you're effectively giving the government a loan of the extra money that’s withheld from each paycheck. If you opt for less withholding you could use the extra money from your paychecks throughout the year and actually make money on it, such as through investing or putting it in a high-interest savings account. You could also use that extra money to make extra payments on loans or other debt.

When you fill out your W-4, there are worksheets that will walk you through withholdings based on your marital status, the number of children you have, the number of jobs you have, your filing status, whether someone else claims you as your dependent, whether you plan to itemize your tax deductions and whether you plan to claim certain tax credits. You can also fine-tune your tax withholding by requesting a certain dollar amount of additional withholding from each paycheck on your W-4.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

**How Your Paycheck Works: FICA Withholding**

In addition to income tax withholding, the other main federal component of your paycheck withholding is for FICA taxes. FICA stands for the Federal Insurance Contributions Act. Your FICA taxes are your contribution to the Social Security and Medicare programs that you’ll have access to when you’re a senior. It’s your way of paying into the system.

FICA contributions are shared between the employee and the employer. 6.2% of each of your paychecks is withheld for Social Security taxes and your employer contributes a further 6.2%. However, the 6.2% that you pay only applies to income up to the Social Security tax cap, which for 2022 is $147,000 ($160,200 for 2023). So any income you earn above that cap doesn’t have Social Security taxes withheld from it. It will still have Medicare taxes withheld, though.

There is no income limit on Medicare taxes. 1.45% of each of your paychecks is withheld for Medicare taxes and your employer contributes another 1.45%. If you make more than a certain amount, you'll be on the hook for an extra 0.9% in Medicare taxes. Here's a breakdown of these amounts for tax years 2022 and 2023:

- $200,000 for single filers, heads of household and qualifying widow(er)s with dependent children
- $250,000 for married taxpayers filing jointly
- $125,000 for married taxpayers filing separately

### 2022 - 2023 Income Tax Brackets

- Single Filers
- Married, Filing Jointly
- Married, Filing Separately
- Head of Household

Single Filers | |

Taxable Income | Rate |
---|---|

$0 - $10,275 | 10% |

$10,276 - $41,775 | 12% |

$41,776 - $89,075 | 22% |

$89,076 - $170,050 | 24% |

$170,051 - $215,950 | 32% |

$215,951 - $539,900 | 35% |

$539,901+ | 37% |

Married, Filing Jointly | |

Taxable Income | Rate |
---|---|

$0 - $20,550 | 10% |

$20,551 - $83,550 | 12% |

$83,551 - $178,150 | 22% |

$178,151 - $340,100 | 24% |

$340,101 - $431,900 | 32% |

$431,901 - $647,850 | 35% |

$647,851+ | 37% |

Married, Filing Separately | |

Taxable Income | Rate |
---|---|

$0 - $10,275 | 10% |

$10,276 - $41,775 | 12% |

$41,776 - $89,075 | 22% |

$89,076 - $170,050 | 24% |

$170,051 - $215,950 | 32% |

$215,951 - $323,925 | 35% |

$323,926+ | 37% |

Head of Household | |

Taxable Income | Rate |
---|---|

$0 - $14,650 | 10% |

$14,651 - $55,900 | 12% |

$55,901 - $89,050 | 22% |

$89,051 - $170,050 | 24% |

$170,051 - $215,950 | 32% |

$215,951 - $539,900 | 35% |

$539,901+ | 37% |

If you work for yourself, you need to pay the self-employment tax, which is equal to both the employee and employer portions of the FICA taxes (15.3% total). Luckily, when you file your taxes, there is a deduction that allows you to deduct the half of the FICA taxes that your employer would typically pay. The result is that the FICA taxes you pay are still only 6.2% for Social Security and 1.45% for Medicare.

**How Your Paycheck Works: Deductions**

Federal income tax and FICA tax withholding are mandatory, so there’s no way around them unless your earnings are very low. However, they’re not the only factors that count when calculating your paycheck. There are also deductions to consider.

For example, if you pay any amount toward your employer-sponsored health insurance coverage, that amount is deducted from your paycheck. When you enroll in your company’s health plan, you can see the amount that is deducted from each paycheck. If you elect to contribute to a Health Savings Account (HSA) or Flexible Spending Account (FSA) to help with medical expenses, those contributions are deducted from your paychecks too.

Also deducted from your paychecks are any pre-tax retirement contributions you make. These are contributions that you make before any taxes are withheld from your paycheck. The most common pre-tax contributions are for retirement accounts such as a 401(k) or 403(b). So if you elect to save 10% of your income in your company’s 401(k) plan, 10% of your pay will come out of each paycheck. If you increase your contributions, your paychecks will get smaller. However, making pre-tax contributions will also decrease the amount of your pay that is subject to income tax. The money also grows tax-free so that you only pay income tax when you withdraw it, at which point it has (hopefully) grown substantially.

Some deductions from your paycheck are made post-tax. These include Roth 401(k) contributions. The money for these accounts comes out of your wages after income tax has already been applied. The reason to use one of these accounts instead of an account taking pre-tax money is that the money in a Roth IRA or Roth 401(k) grows tax-free and you don’t have to pay income taxes when you withdraw it (since you already paid taxes on the money when it went in). If you are early in your career or expect your income level to be higher in the future, this kind of account could save you on taxes in the long run.

**How Your Paycheck Works: Pay Frequency**

Some people get monthly paychecks (12 per year), while some are paid twice a month on set dates (24 paychecks per year) and others are paid bi-weekly (26 paychecks per year). The frequency of your paychecks will affect their size. The more paychecks you get each year, the smaller each paycheck is, assuming the same salary.

**How Your Paycheck Works: Local Factors**

If you live in a state or city with income taxes, those taxes will also affect your take-home pay. Just like with your federal income taxes, your employer will withhold part of each of your paychecks to cover state and local taxes.

## FAQs

### How do I calculate my take home pay from my salary? ›

Figure out the take-home pay by subtracting all the calculated deductions from the gross pay, or using this formula: **Net pay = Gross pay - Deductions (FICA tax; federal, state and local taxes; and health insurance premiums)**.

**How do you calculate what my paycheck will be after taxes? ›**

**How to calculate net income**

- Determine taxable income by deducting any pre-tax contributions to benefits.
- Withhold all applicable taxes (federal, state and local)
- Deduct any post-tax contributions to benefits.
- Garnish wages, if necessary.
- The result is net income.

**How do I calculate my take home pay biweekly? ›**

There are normally 26 biweekly pay periods in a year. To calculate biweekly gross salary, **divide annual salary by 26.** **Then subtract taxes, 401(k) contributions and other deductions from the amount to get net salary**.

**What is my take home pay if I make $30000? ›**

If you make $30,000 a year living in the region of California, USA, you will be taxed $4,985. That means that your net pay will be **$25,015 per year**, or $2,085 per month. Your average tax rate is 16.6% and your marginal tax rate is 25.2%.

**How do you break down salary to hourly? ›**

**Calculating hourly rate from salary in 3 steps**

- Calculate pay per week. Start by figuring out your gross pay, which is the amount you earn before taxes and other deductions. ...
- Determine the number of hours worked per week. ...
- Divide weekly pay by hours worked.

**What is the percentage of federal taxes taken out of a paycheck? ›**

The total due every pay period is **15.3%** of an individual's wages – half of which is paid by the employee and the other half by the employer.

**How much is 12.50 an hour annually? ›**

$12.50 an hour is **$25,000 a year** in annual income.

If you earn an hourly wage of $12.50 an hour and work for an average of 40 hours a week for 50 weeks a year, you'll earn a yearly salary of $25,000. The calculation assumes 50 work weeks with an average of two weeks of holidays in a year.

**How much biweekly is $51,000 a year? ›**

If you make $51,000 per year, your Biweekly salary would be **$1,962**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week. How much tax do I pay if I make $51,000 per year?

**How do I calculate my monthly income if I get paid biweekly? ›**

If a client receives income bi-weekly (i.e., every 2 weeks), **add the bi-weekly amounts together (after dropping cents from each paycheck), divide by 2, drop cents, and multiply by 2.15**. If the month happens to include a periodic extra check (i.e., 3 checks received), divide by 3, drop cents, and multiply by 2.15.

**What is my take home pay if I make 40000? ›**

If you make $40,000 a year living in the region of California, USA, you will be taxed $7,507. That means that your net pay will be $32,493 per year, or **$2,708 per month**.

### How much is 40k a year hourly? ›

So if an employee earns $40,000 annually working 40 hours a week, they make about **$19.23 an hour** (40,000 divided by 2,080).

**What's 50 000 a year hourly? ›**

An average person works about 40 hours per week, which means if they make $50,000 a year, they earn **$24.04 per hour**.

**What is the best salary calculator? ›**

**The 15 Best Salary Calculators and Comparison Tools**

- Payscale. Payscale's free salary calculator can be used by recruiters, employees, potential job applicants, and managers. ...
- Salary.com. ...
- Glassdoor. ...
- Monster. ...
- Indeed. ...
- Hired. ...
- Salary Expert. ...
- NerdWallet.

**What is a good salary calculator? ›**

**PayScale** is a salary calculator that provides a free salary report based on information about you. PayScale pulls data from website visitors who add their salaries and roles as well as from employers representing over 40 industries. Their data pool is large and grows all the time.

**What is the formula for calculating salary? ›**

Calculate your annual salary by **multiplying your hourly pay by the number of hours you work each week.** **Then, multiply that number by 52 weeks per year**. If you're a salaried employee, multiply the income on your paystub (before taxes) by the number of paystubs you receive each year. This is your total annual pay.

**How much is $20 an hour annually? ›**

$20 hourly is how much per year? If you make $20 per hour, your Yearly salary would be **$41,600**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

**How much is 70k a year hourly? ›**

A salary of $70,000 equates to a monthly pay of $5,833, weekly pay of $1,346, and an hourly wage of **$33.65**.

**How many hours is full time? ›**

Full Time in California

According to the California Department of Industrial Relations, working **40 hours per week** qualifies employees as full-time workers.

**How much is $12.50 an hour 40 hours a week? ›**

$12.50 hourly is how much per year? If you make $12.50 per hour, your Yearly salary would be $26,000. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week. How much tax do I pay if I make $12.50 per hour?

**How much is $46.50 an hour annually? ›**

Annual / Monthly / Weekly / Hourly Converter

If you make $46.50 per hour, your Yearly salary would be **$89,466**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.

### How much is $35000 a year an hour? ›

By dividing a $35,000 annual salary by the 2,087 hours representing a full year's work, $35,000 a year will earn you about **$16.77 per hour**. The actual hourly rate you earn depends on how many hours you work throughout the year. Vacation time and part-time arrangements mean a higher hourly wage.

**How much is $25 an hour annually? ›**

$25 hourly is how much per year? If you make $25 per hour, your Yearly salary would be **$52,000**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

**What is 50 dollars an hour biweekly? ›**

Weekly Pay: Multiplying the hourly wage by the number of hours worked per week gives the weekly wage. Assuming a person works 40 hours per week, at $50 per hour they would make $2,000 per week. Bi-Weekly Pay: If you get paid every two weeks, you would make **$4,000 every two weeks**, or over $8,667 per month.

**What is 60k a year hourly? ›**

Based on that figure, the hourly wage for a job that pays $60,000 per year is **$28.75 per hour**. Here's exactly how that $60,000 per year breaks down: $28.75 per hour. $230 per day (assuming an eight-hour work day)

**What is my take home pay if I make 72000? ›**

If you make $72,000 a year living in the region of California, USA, you will be taxed $18,485. That means that your net pay will be **$53,515 per year**, or $4,460 per month. Your average tax rate is 25.7% and your marginal tax rate is 41.0%.

**What is my take home pay if I make 60000? ›**

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or **$3,862 per month**.

**How much take home pay is 70k? ›**

If you make $70,000 a year living in the region of California, USA, you will be taxed $17,665. That means that your net pay will be **$52,335 per year**, or $4,361 per month. Your average tax rate is 25.2% and your marginal tax rate is 41.0%.

**How to calculate net income? ›**

To calculate net income, **take the gross income — the total amount of money earned — then subtract expenses, such as taxes and interest payments**.

**What is my take home pay if I make 50000? ›**

If you make $50,000 a year living in the region of California, USA, you will be taxed $10,242. That means that your net pay will be $39,758 per year, or **$3,313 per month**.

**How much is $300 a month annually? ›**

$300 monthly is how much per year? If you make $300 per month, your Yearly salary would be **$3,600**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

### How much tax is deducted from a $1,000 paycheck? ›

For example, an employee with a gross pay of $1,000 would owe **$62 in Social Security tax and $14.50 in Medicare tax**.

**What is $30 an hour annually? ›**

$30 hourly is how much per year? If you make $30 per hour, your Yearly salary would be **$62,400**. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

**How much Social Security will I get if I make $60000 a year? ›**

That adds up to $2,096.48 as a monthly benefit if you retire at full retirement age. Put another way, Social Security will replace about **42% of your past $60,000 salary**. That's a lot better than the roughly 26% figure for those making $120,000 per year. How bend points work.

**How much is 80k a year hourly? ›**

$80,000 is **$40.00 an hour**.

$40.00 is the hourly wage a person who earns a $80,000 salary will make if they work 2,000 hours in a year for an average of 40 hours per week, with two weeks of total holidays. We take the annual salary of $80,000 and divide it by 2,000 to get to a $40.00 hourly rate.