Income Tax Calculator

This calculator uses the standard payroll engine formula, calculatePaycheck, which applies 2024 federal tax brackets, the standard deduction, and FICA rates. For a single filer earning $70,000 with 40 hours per week, it estimates take-home pay around $56,000 and taxes withheld near $14,000. The accuracy depends on your filing status, state of residence, and pre-tax deductions like 401(k) or health insurance. It does not account for state income taxes, local taxes, or credits such as the Child Tax Credit. For a more detailed breakdown, use our tax bracket calculator to see your marginal rate, or check your actual pay stub to compare. If you have significant deductions or credits, your actual withholding may differ by a few hundred dollars.

Your take-home pay is reduced by federal income tax, Social Security (6.2%), Medicare (1.45%), and any state or local taxes. For a $60,000 salary, FICA alone takes $4,590, and federal income tax might be another $5,000–$6,000. If you live in a high-tax state like California, state income tax can add $2,000–$3,000. Pre-tax deductions like health insurance premiums or 401(k) contributions also lower your net pay but reduce your taxable income. For example, contributing 5% to a 401(k) on a $60,000 salary saves $3,000 from taxes but reduces take-home by $3,000. To see how pre-tax deductions affect your taxes, try our tax withholding calculator. Compare your result to your pay stub to identify any missing deductions.

No, this calculator only estimates federal income tax, Social Security, and Medicare. State income tax varies widely: nine states (like Texas and Florida) have no income tax, while California has rates up to 13.3%. For a $80,000 salary, California state tax could be around $4,000, while Texas would be $0. If you live in a state with income tax, your actual take-home pay will be lower than this calculator shows. To get a more complete picture, you can manually subtract your state's effective rate or use a state-specific calculator. Our tax refund calculator can help you estimate if you'll owe or get a refund after considering all taxes. Always check your state's tax brackets for the most accurate estimate.

Hours per week primarily determine your hourly equivalent and can influence overtime eligibility. The calculator uses hours per week to compute total annual work hours (hours × 52) and derive an hourly rate from your salary. For example, a $52,000 salary at 40 hours per week equals $25 per hour; at 20 hours per week, it equals $50 per hour. However, federal income tax withholding is based on your annual salary, not hours worked. If you work 50 hours per week and earn overtime, your actual gross income will be higher, leading to more withholding. This calculator assumes a fixed salary regardless of hours, so if you receive overtime pay, your take-home will be higher. To estimate overtime, multiply your hourly rate by 1.5 for hours over 40. Use our tax bracket calculator to see how additional income shifts your marginal rate.

Your marginal tax rate is the percentage applied to your last dollar of income, while your effective tax rate is your total tax divided by your gross income. For 2024, a single filer earning $100,000 has a marginal rate of 24% because their top income falls in the 24% bracket. However, their effective rate is lower—around 17%—because lower portions of income are taxed at 10%, 12%, and 22%. This progressive system means you never pay the marginal rate on all your income. For example, on $100,000, the first $11,600 is taxed at 10%, the next $35,550 at 12%, and so on. The effective rate gives a truer picture of your tax burden. To see your exact brackets, use our tax bracket calculator. Understanding both helps with tax planning and evaluating job offers.

This calculator is designed for traditional employees, not self-employed individuals. Self-employed workers must pay both the employee and employer portions of FICA, totaling 15.3% (12.4% for Social Security and 2.9% for Medicare) on net earnings. For a $70,000 self-employment income, that's $10,710 in self-employment tax, plus federal income tax. Employees only pay 7.65% because employers cover the other half. Additionally, self-employed individuals can deduct business expenses and may need to make quarterly estimated tax payments. If you're self-employed, your take-home pay will be significantly lower than this calculator shows. To estimate your taxes, use our tax withholding calculator with your net profit, but add the extra 7.65% for self-employment tax. Consider consulting a tax professional for accurate quarterly estimates.