🇺🇸 Federal Paycheck Calculator
Calculate your take home pay after federal, state & local taxes
Updated for 2022 tax year on Aug 02 2022
Paycheck calculators by state
United States federal paycheck calculation
All residents and citizens in the USA are subjected to income taxes. Residents and citizens are taxed on worldwide income (working overseas, etc.). In contrast, nonresidents are taxed only on income within the jurisdiction.
A tax year is different between federal and state. A federal tax year is 12 months beginning October 01 and ending September 30 the following year. The tax year 2022 will starts on October 01, 2021, and end on September 30, 2022. The state tax year is also 12 months, but it differs from state to state. Some states follow the federal tax year, and some start on July 01 and end on June 30.
Like the tax year, federal income tax rates differ from state income tax rates. Federal taxes are progressive (higher rates on higher income levels). At the same time, states have an advanced tax system or a flat tax rate on all income.
The income tax rate varies from state to state. Eight states are without an income tax, and one has no wage income tax.
It is also worth noting that the recent Tax Cuts and Jobs Act (TCJA) of 2017 made several significant changes to the individual income tax across the board. To understand the differences in detail, refer to this Investopedia article.
Calculate your paycheck in 6 steps
There are six main steps to work out your income tax (federal & state) liability or refunds. First, you must determine your filing status to understand your tax bracket.
Step 1 – Filing status
There are four main filing statuses:
- Single
- Married, Filing Jointly, or Widow(er)
- Married, Filing Separately
- Head of Household
Your marital status and whether you have any dependents will determine your filing status.
For example, if you are single and have a child, you should file as ‘Head of Household’.
Refer to IRS to understand more.
Step 2 – Adjusted gross income
The second step is to figure out your adjusted gross income.
The formula is:
Net income – Adjustments = Adjusted gross income
Income means money received for pretty much any reason such as wage, rental income, side hustle, unemployment benefits, etc. You just need to add them up to determine your annual income. If you’re paid hourly, you will need to multiple it with your total annual hours.
Adjustments are also known as above-the-line deductions or pre-tax deductions.There are 2 types of deductions: above-the-line & post-tax (more in the next step).
Some of the adjustments are:
- Student loan interest
- Contributions to a retirement account (401k, IRA)
- Health savings account deduction
- Educator expenses
- Moving expenses for a job
- College tuition and fees
For the complete breakdown of the various type of above-the-line deductions or adjustments, refer to this article from thebalance.com.
Step 3 – Taxable income
Now you need to figure out your taxable income.
The formula is:
Adjusted gross income – Standard/Itemized deductions = Taxable income
You can choose to either take the standard deduction amount or itemize your deductions. If your itemized deductions are less than the standard deduction, just claim the standard amount 🙂
Some of the deductions you can itemize are:
- Charitable donations
- Home mortgage interest
Exemptions have been eliminated from Federal income tax since the Tax Cuts and Jobs Act (TCJA) was implemented in 2018. But some states still have exemptions in their income tax calculation.
You might be confused with deductions and exemptions, so the following is a quote from Zacks.com:
Tax deductions are items you claim to reduce your tax liability while exemptions refer to the people you claim to reduce tax liability, such as dependents.
Step 4 – Income tax liability
This step is rather straight forward. You just need to understand which tax bracket you belong to based on your taxable income. If your filing status is ‘Married, Filing Jointly’ or ‘Widow(er)’, you need to combine your taxable income with your partner’s.
The formula to calculate tax liability:
Taxable income × Income tax rate = Income tax liability
Step 5 – Payroll tax liability
There is an additional tax (surprise!) before the final step. Federal Insurance Contributions Act (FICA) also known as the payroll tax that is taken directly from your paycheck. FICA is made up of social security and medicare.
The formula is:
Net income × Payroll tax rate = Payroll tax liability
Step 6 – Minus everything
Once you have worked out your total tax liability, you minus the money you put aside for tax withholdings every year (if there is any) and any post-tax deductions.
The formula is:
Total annual income – (Income tax liability + Payroll tax liability + Pre-tax deductions + Post-tax deductions + Withholdings) = Your paycheck
That’s the six steps to go through to work your paycheck. You need to do these steps separately for federal, state and local income taxes.
For visual explanations of the above steps, you can refer to Youtube videos from Ladder Up, MoneyCoach or Edspira.
Federal Insurance Contributions Act (FICA)
Also known as ‘paycheck tax’ or ‘payroll tax’, these taxes are taken from your paycheck directly and are used to fund social security and medicare.
For example, in the tax year 2020 Social Security tax is 6.2% for employee and 1.45% for Medicare tax.
If your monthly paycheck is $6000, $372 goes to Social Security and $87 goes to Medicare, leaving you with $6000 – $372 – $87 = $5541
Social Security
| Tax year | Employment status | Gross income | Rate |
|---|---|---|---|
| 2022 | Employer | Up to $147,000 | 6.20% |
| Employee | 6.20% | ||
| Self-employed | 12.40% | ||
| 2021 | Employer | Up to $142,800 | 6.20% |
| Employee | 6.20% | ||
| Self-employed | 12.40% | ||
| 2020 | Employer | Up to $137,700 | 6.20% |
| Employee | 6.20% | ||
| Self-employed | 12.40% |
Medicare
| Tax year | Employment status | Filing status | Gross income | Rate |
|---|---|---|---|---|
| 2022 2021 2020 |
Employer | Single & Head of Household | Up to $200,000 | 1.45% |
| Married Jointly | Up to $250,000 | |||
| Married Separately | Up to $125,000 | |||
| Single & Head of Household | $200,000 and over | 2.35% | ||
| Married Jointly | $250,000 and over | |||
| Married Separately | $125,000 and over | |||
| Employee | Single & Head of Household | Up to $200,000 | 1.45% | |
| Married Jointly | Up to $250,000 | |||
| Married Separately | Up to $125,000 | |||
| Single & Head of Household | $200,000 and over | 2.35% | ||
| Married Jointly | $250,000 and over | |||
| Married Separately | $125,000 and over | |||
| Self-employed | Single & Head of Household | Up to $200,000 | 2.90% | |
| Married Jointly | Up to $250,000 | |||
| Married Separately | Up to $125,000 | |||
| Single & Head of Household | $200,000 and over | 3.80% | ||
| Married Jointly | $250,000 and over | |||
| Married Separately | $125,000 and over |
Income tax brackets
Every year, IRS adjusts some tax provisions for inflation. This means that your federal tax bracket varies from year to year and you need to check the latest data before you do your tax return.
For the latest on federal income tax brackets, you can refer to Tax Foundation.
The income tax rate varies from state to state. There are 8 states which don’t have income tax and 1 state (New Hampshire) that has no wage income tax.
| Tax year | Filing status | Taxable income | Rate |
|---|---|---|---|
| 2022 | Single | $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 and over | 37% | ||
| Married, Filing Jointly or Widow(er) | $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 and over | 37% | ||
| Married, Filing Separately | $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 and over | 37% | ||
| Head of Household | $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 and over | 37% | ||
| 2021 | Single | $0 – $9,950 | 10% |
| $9,951 – $40,525 | 12% | ||
| $40,526 – $86,375 | 22% | ||
| $86,376 – $164,925 | 24% | ||
| $164,926 – $209,425 | 32% | ||
| $209,426 – $523,600 | 35% | ||
| $523,601 and over | 37% | ||
| Married, Filing Jointly or Widow(er) | $0 – $19,900 | 10% | |
| $19,901 – $81,050 | 12% | ||
| $81,051 – $171,050 | 22% | ||
| $172,751 – $329,850 | 24% | ||
| $329,851 – $418,850 | 32% | ||
| $418,851 – $628,300 | 35% | ||
| $628,301 and over | 37% | ||
| Married, Filing Separately | $0 – $9,950 | 10% | |
| $9,951 – $40,525 | 12% | ||
| $40,526 – $86,375 | 22% | ||
| $86,376 – $164,925 | 24% | ||
| $164,926 – $209,425 | 32% | ||
| $209,426 – $314,150 | 35% | ||
| $314,151 and over | 37% | ||
| Head of Household | $0 – $14,200 | 10% | |
| $14,201 – $54,200 | 12% | ||
| $54,201 – $86,350 | 22% | ||
| $86,351 – $164,900 | 24% | ||
| $164,901 – $209,400 | 32% | ||
| $209,401 – $523,600 | 35% | ||
| $523,601 and over | 37% | ||
| 2020 | Single | $0 – $9,875 | 10% |
| $9,876 – $40,125 | 12% | ||
| $40,126 – $85,525 | 22% | ||
| $85,526 – $163,300 | 24% | ||
| $163,301 – $207,350 | 32% | ||
| $207,351 – $518,400 | 35% | ||
| $518,401 and over | 37% | ||
| Married, Filing Jointly or Widow(er) | $0 – $19,750 | 10% | |
| $19,751 – $80,250 | 12% | ||
| $80,251 – $171,050 | 22% | ||
| $171,051 – $326,600 | 24% | ||
| $326,601 – $414,700 | 32% | ||
| $414,701 – $622,050 | 35% | ||
| $622,051 and over | 37% | ||
| Married, Filing Separately | $0 – $9,875 | 10% | |
| $9,876 – $40,125 | 12% | ||
| $40,126 – $85,525 | 22% | ||
| $85,526 – $163,300 | 24% | ||
| $163,301 – $207,350 | 32% | ||
| $207,351 – $311,025 | 35% | ||
| $311,026 and over | 37% | ||
| Head of Household | $0 – $14,100 | 10% | |
| $14,101 – $53,700 | 12% | ||
| $53,701 – $85,500 | 22% | ||
| $85,501 – $163,300 | 24% | ||
| $163,301 – $207,350 | 32% | ||
| $207,351 – $518,400 | 35% | ||
| $518,401 and over | 37% |
Standard deduction
Also known as post-tax deductions, you can choose to either take the standard deduction amount or itemize your deductions. If your itemized deductions are less than the standard deduction, just claim the standard amount 🙂
Some of the deductions you can itemize are:
- Charitable donations
- Home mortgage interest
For a list of itemizable deductions, refer to Dough Roller’s ultimate list.
| Tax year | Filing status | Standard deduction amount |
|---|---|---|
| 2022 | Single | $12,950 |
| Married, Filing Jointly | $25,900 | |
| Married, Filing Separately | $12,950 | |
| Head of Household | $19,400 | |
| 2021 | Single | $12,550 |
| Married, Filing Jointly | $25,100 | |
| Married, Filing Separately | $12,550 | |
| Head of Household | $18,800 | |
| 2020 | Single | $12,200 |
| Married, Filing Jointly | $24,400 | |
| Married, Filing Separately | $12,200 | |
| Head of Household | $18,350 |
FAQs
How do I figure out how much my paycheck will be?
Step 1: Determine your filing status
Step 2: Net income – Adjustments = Adjusted gross income
Step 3: Adjusted gross income - Standard/Itemized deductions = Taxable income
Step 4: Taxable income × Income tax rate (based on filing status) = Income tax liability
Step 5: Net income × Payroll tax rate = Payroll tax liability
Step 6: Total annual income - (Income tax liability + Payroll tax liability + Pre-tax deductions + Post-tax deductions + Withholdings) = Your paycheck
How much is a paycheck on a 40000 salary?
You will receive $2,824.96 monthly after federal tax liability for a single filer. For married filed jointly with no dependent, the monthly paycheck is $2,960.83 after federal tax liability.
How much is a 75k paycheck?
Paycheck after federal tax liability for a single filer:
- Monthly - $4,999.54
- Bi-weekly - $2,307.48
- Weekly - $1,153.74
How much taxes will get deducted from a $75,000 paycheck?
The federal taxes deducted for a single filer are $772.33 monthly or $356.46 bi-weekly. For married filed jointly with no dependent, the total monthly federal taxes deducted is $456.75 or $210.81 bi-weekly.