Payroll Tax Calculator
Estimate the total payroll taxes withheld from an employee's paycheck, including Social Security (6.2%), Medicare (1.45%), state tax, and federal income tax adjusted for allowances. Use this when running payroll or verifying your pay stub deductions.
About this calculator
Payroll taxes consist of several mandatory components. Social Security tax is 6.2% of gross pay, and Medicare tax is 1.45%, together forming the 7.65% FICA contribution. Federal income tax withholding is estimated using your filing status and allowances: each allowance reduces taxable wages by $85.40 per period, and the remaining amount is taxed at approximately 22% for single filers or a reduced effective rate for married filers. State income tax is applied as a flat percentage of gross pay. The combined formula is: Total Tax = (grossPay × 0.062) + (grossPay × 0.0145) + (grossPay × stateRate / 100) + (grossPay × 0.22 × filingStatusFactor) − (allowances × 85.40). This gives a close estimate of total withholding per pay period.
How to use
Suppose your gross pay is $3,000, you file as single, claim 1 allowance, and your state rate is 5%. Social Security: $3,000 × 0.062 = $186. Medicare: $3,000 × 0.0145 = $43.50. State tax: $3,000 × 0.05 = $150. Federal income tax: ($3,000 × 0.22 × 1) − (1 × $85.40) = $660 − $85.40 = $574.60. Total estimated tax = $186 + $43.50 + $150 + $574.60 = $954.10 withheld from your $3,000 paycheck.
Frequently asked questions
What is the difference between FICA taxes and federal income tax withholding?
FICA taxes are fixed-rate contributions that fund Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of gross wages. Federal income tax withholding, by contrast, is variable and depends on your filing status, number of allowances claimed, and income level. Both appear as separate line items on your pay stub. FICA is split equally between employee and employer, while federal income tax is solely the employee's responsibility.
How do federal allowances reduce the amount of tax withheld from my paycheck?
Each federal allowance you claim on your W-4 reduces your taxable wages by a set amount per pay period — approximately $85.40 in this calculator's model. Claiming more allowances lowers your withholding, giving you more take-home pay each period but potentially resulting in a smaller refund or a balance due at tax time. Claiming zero allowances maximizes withholding, which can produce a larger refund. The IRS recommends using the W-4 estimator to choose the right number.
Why does filing status affect how much payroll tax is withheld?
Filing status signals to your employer whether to use the single or married withholding tables, which have different tax bracket thresholds. Married filers generally have lower withholding because the standard deduction and bracket boundaries are higher for joint filers. This calculator approximates that difference by applying a reduced factor (0.85) for married status on the federal income tax portion. Your actual withholding may vary depending on your specific W-4 elections and total annual income.