Understanding Your Payslip Deductions
Every paycheck has mandatory deductions before you receive your take-home pay. In the US, these include Social Security, Medicare (FICA taxes), federal income tax, and state income tax. Knowing how each works helps you plan your finances accurately.
Key Deductions Explained
Social Security (6.2%) applies up to the annual wage base ($168,600 in 2024). Medicare (1.45%) has no wage cap. Federal income tax is calculated based on your taxable income (gross minus standard deduction) and filing status using progressive brackets. State income tax varies by state — from 0% (Texas, Florida) to over 13% (California).
How to Reduce Your Tax Burden
Contributing to a 401(k) or HSA reduces your taxable income and lowers federal and state taxes. Pre-tax benefits like health insurance premiums also reduce your taxable gross. This calculator shows pre-tax deductions only — actual take-home may differ based on voluntary deductions.
Frequently Asked Questions
This calculator estimates federal and state tax based on standard deductions only. Actual take-home may differ due to 401(k) contributions, health insurance, HSA, or other voluntary deductions.
FICA stands for Federal Insurance Contributions Act. It includes Social Security (6.2%) and Medicare (1.45%) taxes, totaling 7.65% of your gross wages.
No. States like Texas, Florida, Nevada, and Washington have no state income tax. Enter 0% if you live in one of these states.