Tax Withholding Calculator

Take-home pay is your gross salary minus federal income tax, Social Security, and Medicare taxes. For example, if you earn $60,000 annually, you first subtract the standard deduction ($15,000 for single filers in 2025), leaving $45,000 taxable. Federal income tax on that amount is about $5,148. Social Security takes 6.2% of $60,000 ($3,720), and Medicare takes 1.45% ($870). Total taxes are $9,738, so your annual take-home is $50,262, or about $4,188 per month. This assumes no state tax, 401(k), or other deductions. To get a more precise number, use our income tax calculator, which includes state taxes and credits.

Your actual paycheck can differ due to state and local taxes, pre-tax deductions like 401(k) or health insurance, and additional withholding you elected on your W-4. For instance, if you contribute 5% to a 401(k) on a $75,000 salary, that's $3,750 pre-tax, reducing your taxable income and thus your federal tax. State taxes can also take a chunk: California taxes up to 9.3% for middle incomes, while Texas has no state income tax. The calculator uses a simplified model with only federal taxes and FICA. For a more accurate estimate that includes state taxes, try our tax bracket calculator. Also, check your pay stub for any deductions you might have missed.

You can increase take-home pay by adjusting your W-4 to claim more allowances or dependents, which reduces withholding. For example, if you're married with two kids, claiming them could boost your monthly take-home by $200 or more. However, this may reduce your refund or even cause you to owe at tax time. Another way is to contribute less to pre-tax accounts like a 401(k) or FSA, but that reduces retirement savings. Alternatively, you can ask your employer to withhold a flat amount rather than a percentage. Use our tax refund calculator to see how changes affect your refund. Remember, the goal is to match withholding to your actual tax liability to avoid penalties.

Withholding is the amount your employer sends to the IRS from each paycheck, while tax liability is the total tax you owe for the year. If you withhold $12,000 but your liability is $10,000, you overpaid and get a $2,000 refund. If you withhold $9,000, you owe $1,000. For example, a single filer earning $80,000 has a federal tax liability of about $11,000. If their W-4 leads to $12,000 withheld, they get a $1,000 refund. You can adjust your W-4 to align withholding with liability. Our tax refund calculator helps you estimate your refund or balance due based on your withholding and income.

Hours per week determine your total annual income if you're paid hourly. For instance, earning $20 per hour at 40 hours per week gives $41,600 annually ($20 × 40 × 52). At 20 hours per week, it's $20,800. Withholding is based on annualized income, so fewer hours mean lower tax brackets and less withholding per paycheck. If you work overtime, your withholding may increase because your annualized income rises. For example, 45 hours per week at $20 per hour equals $46,800 annually, pushing you into a higher tax bracket. Use our tax bracket calculator to see how different income levels affect your marginal rate.

With multiple jobs, each employer withholds taxes independently, which can lead to under-withholding because the combined income may push you into a higher bracket. For example, two jobs paying $50,000 each total $100,000, but each withholds as if you earn $50,000, resulting in a tax shortfall of about $4,000. To fix this, you can use the IRS Tax Withholding Estimator or submit a new W-4 with extra withholding. For freelance income, you may need to make quarterly estimated tax payments. Our income tax calculator can help you estimate total tax on combined income, and our tax refund calculator can show if you're on track for a refund or owe.