How Much Tax Comes Out of Your Paycheck
Every line of withholding decoded: federal, FICA, state, and the benefits that shrink the taxable base.
A typical paycheck loses 18 to 30 percent to taxes before benefits: federal income tax withholding (progressive brackets), FICA at a flat 7.65 percent, and state/local income tax (0 to 13 percent depending on the state). On a $75,000 biweekly salary, roughly $312 goes to federal withholding and $221 to FICA per $2,885 paycheck, before state tax.
Federal income tax withholding
Federal withholding is a prepayment of your income tax, computed from your W-4 elections. This guide's calculator uses a simplified single-filer estimate: salary minus the $15,000 standard deduction (2025 figure), run through the progressive brackets. Your employer's actual math follows IRS tables and your W-4 step by step.
Withholding is not your tax bill. If too much was withheld, you get a refund; too little, you owe. The W-4 controls the prepayment: claim accurately and the refund approaches zero, which means you kept your money all year instead of lending it interest-free.
FICA: the flat slice
Social Security (6.2 percent up to the $176,100 wage base for 2025) and Medicare (1.45 percent, no cap) come off every paycheck from the first dollar. No deductions, no brackets. On $75,000 biweekly, that is about $179 Social Security and $42 Medicare per check.
Nine states have no income tax at all, but nobody escapes FICA: it applies in every state because it is federal. Self-employed workers pay both halves, 15.3 percent, as self-employment tax.
State and local taxes
State income tax ranges from zero (Texas, Florida, Washington, and six others) to over 13 percent at the top in California. Some cities add their own tax: New York City, for example, layers a city tax on top of state tax. Local services taxes and state disability insurance (California, New Jersey, and a few others) can appear as separate small lines.
Remote workers: your withholding generally follows the state where you work, not where your employer sits, and getting it wrong across state lines is one of the most common paycheck errors. If you moved, update your state withholding immediately.
Reading your pay stub
Find these lines: gross pay, federal withholding (FIT), Social Security (OASDI), Medicare, state withholding (SIT), and pre-tax deductions (401k, medical, dental, HSA). Post-tax lines like Roth 401(k) or garnishments sit below the tax lines.
Check two numbers every new job: that Social Security stops at the wage base later in the year if you are a high earner, and that your year-to-date totals on the last stub match your W-2 in January. Catching a mismatch in December beats amending a return in April.
Skip the arithmetic
Break down your own paycheck line by line with the free paycheck calculator.
Paycheck tax questions
What percentage of my paycheck goes to taxes?
Typically 18 to 30 percent before benefit deductions: federal income tax withholding (progressive, so it rises with income), a flat 7.65 percent FICA, and state/local income tax ranging from zero to over 13 percent. Your exact split depends on salary, state, and pre-tax benefits.
Why did my take-home pay drop when I got a raise?
A raise cannot reduce take-home pay by itself, since only the dollars above each bracket line face the higher rate. If your net fell, something else changed at the same time: higher benefit premiums, 401(k) contributions set as a percentage of pay, or a W-4 issue. Compare the stubs line by line.
Do I pay taxes on my 401(k) contributions?
Traditional (pre-tax) 401(k) contributions avoid federal income tax in the contribution year, and you pay income tax when you withdraw in retirement. Roth 401(k) contributions are taxed now and withdraw tax-free later if the rules are met. Employer matches always go in pre-tax.