Tax Withholding Calculator
401k, HSA, etc.
Gross wages before this paycheck
W-4 Form Settings (2020+)
Enable if you have more than one job at a time, or if married filing jointly and your spouse also works
$2,000 per child, $500 per other dependent
Annual income not from jobs (interest, dividends)
Above standard deduction ($16,100.00)
Additional amount per paycheck
Net Pay (Take-Home)
$2,997.62
Per paycheck
Total Withholding
$1,002.38
Per paycheck
Paycheck Breakdown
| Gross Pay | $4,000.00 |
| - Pre-Tax Deductions (401k, HSA) | $200.00 |
| - Federal Income Tax | $496.38 |
| - Social Security (6.2%) | $248.00 |
| - Medicare (1.45%) | $58.00 |
| Net Pay | $2,997.62 |
Annual Gross
$104,000.00
26 paychecks
Annual Withholding
$26,062.00
All deductions
Annual Net
$77,938.00
Take-home pay
Tax Withholding Breakdown
Understanding the 2020+ W-4
- Step 2(c): Check if you or your spouse have multiple jobs. This uses higher withholding rates to prevent underwithholding.
- Step 3: Claim $2,000 per qualifying child under 17 and $500 for other dependents to reduce withholding.
- Step 4(a): Enter annual income from interest, dividends, retirement, or other sources not subject to withholding.
- Step 4(b): Enter deductions beyond the standard deduction if you plan to itemize (mortgage interest, charitable donations, etc.).
- Step 4(c): Request additional withholding per paycheck if you want a larger refund or need to cover other income.
FICA Tax Limits (2026)
- Social Security: 6.2% on wages up to $184,500.00 annually. Enter your year-to-date earnings to see when you hit the cap.
- Medicare: 1.45% on all wages with no cap. Additional 0.9% applies to wages over $200,000 (single) or $250,000 (married filing jointly).
Note
This calculator uses the 2020+ W-4 format which replaced allowances with a more straightforward approach. If you have an older W-4 on file, your employer uses the old method until you submit a new form. State and local taxes vary by location. FICA taxes (Social Security and Medicare) are required regardless of W-4 settings.
About the Tax Withholding Calculator
The Tax Withholding Calculator estimates how much federal income tax should be deducted from each paycheck so your year-end withholding closely matches your actual tax liability. It uses your wages, pay frequency, filing status, and W-4 adjustments to project both per-paycheck withholding and your annual total, helping you avoid both a large surprise balance and an oversized refund.
The tool mirrors the logic the IRS uses in its tax tables and the redesigned Form W-4: it annualizes your pay, subtracts the standard deduction for your filing status, applies the progressive brackets, and accounts for dependents, additional income, and extra withholding you request. The output shows whether your current setup will over- or under-withhold relative to your projected liability, so you can fine-tune the dollar amounts entered on your W-4.
Employees use this when starting a new job, after a raise or bonus, following a marriage or birth, or whenever a previous year ended in a big refund or balance due. It works closely with the Tax Return Calculator for projecting the final outcome and the Income Tax Calculator and Tax Bracket Calculator for the underlying bracket math that drives withholding.
A practical tip: aim for withholding that lands you near zero at filing time to maximize your take-home pay throughout the year. If you have multiple jobs or a working spouse, use the W-4 multiple-jobs worksheet or request extra per-paycheck withholding, since each employer otherwise withholds as if its salary is your only income, which often under-withholds overall.
Frequently asked questions
- What is tax withholding?
- It is the federal income tax your employer deducts from each paycheck and sends to the IRS on your behalf throughout the year, prepaying your annual tax liability.
- How do I adjust my withholding?
- Submit an updated Form W-4 to your employer. You can claim dependents, account for other income or deductions, or request a specific extra dollar amount withheld per paycheck.
- Why do I owe taxes even though my employer withheld money?
- Common causes include multiple jobs, a working spouse, side income, or large bonuses that were under-withheld. Each employer withholds as if its pay is your only income, which can fall short overall.
- Should I aim for a refund or to break even?
- Breaking even maximizes your take-home pay during the year. A refund means you over-withheld and lent the government money interest-free, while owing too much can trigger penalties.
Calculate take-home pay after taxes
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Find your tax bracket