How much federal tax is taken out of my paycheck?

Start a new job last year or take on a side gig for extra income? Did you get married or divorced, or have a baby? All of these reasons affect your paycheck withholdings, and they could determine whether you receive a tax refund—or owe Uncle Sam more money.

The IRS has created a free calculator, called the Tax Withholding Estimator, which can help you figure out if you are withholding too much—or too little—from your paychecks. After inputting your salary information (more on that below), the calculator shows you the current amount of federal income taxes being withheld, and compares it to an estimate of the total amount of federal income taxes you are obligated to pay in next year’s tax bill. If you discover that you are not withholding enough (or are withholding too much), it can even help you adjust the withholding amount through tax form W-4.

The Tax Withholding Estimator launched in 2019 as part of the IRS’ stated efforts to “improve the quality of its services,” which included answering 3 million more phone calls in 2023 and clearing out its backlog of 1.9 million paper tax returns. It also launched its Free File program and Direct File pilot program, which are a series of free tax filing services that allow taxpayers to file their returns directly with the IRS.

The Tax Withholding Estimator is actually a reboot of an earlier version of a withholding calculator that the IRS developed, responding to feedback to make it more user-friendly and adding enhanced features so that retirees and people with nontraditional jobs could also take advantage. The estimator now takes into account additional tax payments from unemployment, self-employment, and annuity income—all in a mobile-friendly format.

How are paycheck withholdings calculated?

Your tax rate

There’s no way around the fact that the federal government takes a slice out of whatever you earn through federal income taxes (unless you make less than the standard deduction; then you don’t have to file a return).

The amount of tax that is withheld from your paycheck depends on how much you made during each pay period, because the IRS divides income into ranges, known as tax brackets, and applies a federal tax rate to each.

W-4 Form

Your paycheck withholdings also depend on the information you gave to your employer when you started your job. Think back to when you were first hired. You were asked to fill out a W-4 form, where you answered whether you were single or married, if you filed taxes jointly, or if you were the head of a household. This is known as your filing status.

The W-4 also asked whether you had multiple jobs, if your spouse was employed, how many dependents you had, or if you had any other deductions you wanted to include: All of this information was used to calculate your paycheck withholding.

But life changes can and do happen, and if you don’t remember to adjust your W-4 accordingly, you could wind up owing more money at tax time. That’s why tools like the Tax Withholding Estimator can really come in handy—if you have the right information available to use it.

How do I use the IRS’ paycheck withholding calculator?

The IRS itself says its Tax Withholding Estimator is only as accurate as the information you input. Therefore, it pays to be as organized as you can before you begin.

Think back over the course of the year: What life events happened that might cause your withholding allowances to change?

You will also want to have the following information on hand:

• Paystubs for all of your jobs—and if you’re married and filing jointly, your spouse’s paystubs, too
• Any other relevant income information, from your side jobs, self-employment information, and your investments
• Your most recent tax return

Then you’re ready to use the Tax Withholding Estimator. Follow the prompts on each page—and note, you can toggle back and forth between pages if you find you need to change an answer. There’s a FAQ page if you get stuck, and you can also reach an IRS representative to answer questions by phone or chatbot.

The IRS notes that the calculator is not designed for complex tax situations, such as the Alternative Minimum Tax, or if you are not a U.S. citizen.

What else is taken out of my paycheck?

Keep in mind, Tax Withholding Estimator only calculates your estimated federal income tax withholdings—it won’t mirror your paystub. Your employer must also withhold federal Social Security and Medicare taxes, and if you signed up for voluntary deductions, such as health care or retirement contributions, they won’t be included here, either.