Why is my actual withholding different?

Employers withhold using IRS Publication 15-T tables and your W-4. Multiple jobs, spousal income, bonuses and mid-year changes all shift the amount; the exact figure is settled on your return.

The Federal Insurance Contributions Act tax: 6.2% for Social Security (capped at the wage base) plus 1.45% for Medicare. Your employer pays the same again, so the total contribution is 15.3% of most wages.

Do dependents reduce my tax?

Only through credits such as the Child Tax Credit (2,000 per qualifying child, partly refundable). Unlike Korea or Japan, the US has no per-dependent income deduction.

Take-Home Pay Calculator (US)

Estimate federal income tax, FICA and net monthly pay from a gross salary.

Gross Monthly Pay (USD) Dependents (including yourself)

How US Payroll Deductions Work

A US payslip has three main deductions: federal income tax withheld, Social Security and Medicare (FICA), and any state or local tax. Withholding is not a final tax - it is an estimate based on your W-4, reconciled when you file your return. FICA is a flat payroll tax: 6.2% for Social Security up to the annual wage base and 1.45% for Medicare on all wages.

The Calculation

Net = Gross - Federal Income Tax - FICA (- State Tax)

Taxable income = annual gross - standard deduction (15,000 for a single filer in 2025) - pre-tax contributions. Federal tax then follows the brackets, and the Child Tax Credit (2,000 per qualifying child) is subtracted from the tax itself. FICA is 7.65% up to the Social Security wage base (176,100 in 2025) and 1.45% above it.

Worked Example

A 7,500 monthly salary is 90,000 a year. After the 15,000 standard deduction, 75,000 is taxable - about 11,414 of federal tax.

FICA = 7.65% x 90,000 = 6,885, so monthly net is about (90,000 - 11,414 - 6,885) / 12 = 5,975.

Simplifications in This Estimate

It assumes single filing status, the standard deduction, no 401(k) or health-premium pre-tax contributions, no state tax and no credits other than the Child Tax Credit. Real withholding depends on your W-4 elections, and bonuses are withheld at a flat 22% supplemental rate. Use the result as a planning estimate, not as payroll advice.

Frequently Asked Questions

Why is my actual withholding different?: Employers withhold using IRS Publication 15-T tables and your W-4. Multiple jobs, spousal income, bonuses and mid-year changes all shift the amount; the exact figure is settled on your return.
What is FICA?: The Federal Insurance Contributions Act tax: 6.2% for Social Security (capped at the wage base) plus 1.45% for Medicare. Your employer pays the same again, so the total contribution is 15.3% of most wages.
Do dependents reduce my tax?: Only through credits such as the Child Tax Credit (2,000 per qualifying child, partly refundable). Unlike Korea or Japan, the US has no per-dependent income deduction.