The percentage of your paycheck that goes to taxes depends on various factors, such as your income, filing status, and deductions. Here's a breakdown of the taxes and deductions that typically come out of a paycheck:
- Federal Income Tax : The amount taken out is based on your gross income, your W-4 Form that describes your tax situation for your employer, and other factors. The federal income tax rates for 2023 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%
- State Income Tax : The percentage of your paycheck that goes to state taxes will vary based on how taxes are levied in your state. Different income tax brackets apply depending on how much money you make
- Social Security and Medicare Taxes : The Social Security tax is 6.2% of wages for the employee and the same for the employer, with a cap of $147,000 in wages
. The Medicare tax rate is set to 1.45% on all wages
- Pre-tax Retirement Contributions : These are contributions that you make before any taxes are withheld from your paycheck, such as for retirement accounts like a 401(k) or 403(b)
For a typical paycheck, you can expect to have both FICA and federal income taxes withheld. The exact percentage of your paycheck that goes to taxes will depend on your specific situation and the deductions you have in place
. To calculate the exact amount, you can use online paycheck calculators, such as the ones provided by SmartAsset
or Forbes Advisor
