Payroll Tax Calculator

Payroll taxes are the mandatory taxes withheld from an employee's paycheck and also paid by the employer on behalf of the employee. Every working American encounters payroll taxes, yet many people don't fully understand how they are calculated or what they fund. Our payroll tax calculator helps you see every line item — from FICA contributions to federal and state withholding — so you can understand exactly where your money goes each pay period.

There are two main categories of payroll taxes: employee-paid taxes and employer-paid taxes. Employee taxes are deducted directly from your gross pay, reducing your take-home paycheck. Employer taxes are paid on top of your salary and represent an additional labor cost to your employer. Together, these obligations form the foundation of how Social Security, Medicare, and unemployment insurance are funded in the United States.

The primary types of payroll taxes include:

• FICA taxes: Social Security (6.2% employee + 6.2% employer) and Medicare (1.45% employee + 1.45% employer), plus an Additional Medicare Tax of 0.9% for high earners.
• Federal income tax withholding: Based on your gross wages, filing status, standard deduction, and the 2024 progressive tax brackets.
• State income tax: Varies by state, entered as a flat rate percentage in this calculator.
• Local income tax: Applicable in certain cities and counties, entered as an additional flat rate.
• FUTA (Federal Unemployment Tax): Paid exclusively by the employer at 0.6% (after credits) on the first $7,000 of wages per employee per year.

Understanding payroll taxes is essential not just for budgeting your take-home pay, but also for business owners who need to plan labor costs, HR professionals managing payroll compliance, and anyone negotiating a salary offer. A $75,000 salary offer, for example, could cost an employer over $80,000 once employer payroll taxes are factored in.

This payroll tax calculator uses the following step-by-step logic to compute all results. Every formula below exactly mirrors the JavaScript code powering the calculator on this page.

Step 1 — Determine per-period gross pay:

Divide the annual gross salary by the number of pay periods (52 for weekly, 26 for bi-weekly, 24 for semi-monthly, 12 for monthly).

Step 2 — Compute pre-tax deductions and taxable gross:

The annual retirement (401k) contribution is grossSalary × retirementPercent. The annual other pre-tax amount is preTaxDeductionsPerPeriod × periods. Annual taxable gross = grossSalary − annualRetirement − annualPreTax.

Step 3 — FICA taxes (employee side):

Social Security wages are capped at the $168,600 wage base. Social Security tax = min(annualTaxableGross, $168,600) × 6.2%. Medicare tax = annualTaxableGross × 1.45%. Additional Medicare = max(0, annualTaxableGross − threshold) × 0.9% where the threshold is $200,000 (single) or $250,000 (married).

Step 4 — Federal income tax (progressive brackets):

Federal taxable income = max(0, annualTaxableGross − standardDeduction), where the 2024 standard deduction is $14,600 (single) or $29,200 (married). Tax is then calculated iteratively across the 2024 brackets at rates 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Step 5 — State and local taxes:

State tax = annualTaxableGross × stateTaxRate. Local tax = annualTaxableGross × localTaxRate.

Step 6 — Net pay:

Net annual = grossSalary − totalEmployeeTax − annualRetirement − annualPreTax. Net per period = netAnnual / periods.

FICA stands for the Federal Insurance Contributions Act, the law that mandates Social Security and Medicare taxes. These are perhaps the most misunderstood payroll taxes because they appear on both the employee and employer sides of the ledger, and many workers don't realize their employer is also paying an equal share.

Social Security Tax (OASDI): The employee pays 6.2% and the employer matches another 6.2%, for a combined rate of 12.4%. However, Social Security tax only applies to wages up to the annual wage base limit — in 2024, this limit is $168,600. Any wages above this amount are not subject to Social Security tax, which is why high earners see this tax stop mid-year.

Medicare Tax (HI): Both the employee and employer each pay 1.45% with no wage cap, meaning every dollar earned is subject to Medicare tax. This funds the Medicare Hospital Insurance program that provides health coverage to Americans aged 65 and older.

Additional Medicare Tax: The Affordable Care Act added a 0.9% surtax on wages exceeding $200,000 for single filers and $250,000 for married filing jointly. Unlike the base Medicare tax, the employer does NOT match this additional 0.9% — it is solely an employee obligation. This calculator automatically applies the additional Medicare surcharge when your annual taxable gross exceeds the applicable threshold.

For 2024, a single employee earning $75,000 will pay approximately $4,650 in Social Security and $1,088 in Medicare, for a total FICA contribution of $5,738 — and their employer will pay an equal $5,738 in matching FICA contributions.

Federal income tax withholding is determined by your annual taxable income and filing status. The United States uses a progressive tax system, meaning different portions of your income are taxed at different rates. The rate that applies to your highest dollar of income is your marginal rate, which is different from your effective rate — the average rate across all your income.

This calculator first subtracts the 2024 standard deduction from your annual taxable gross to arrive at federal taxable income. The standard deduction is $14,600 for single filers and $29,200 for married filing jointly. Then it applies the 2024 tax brackets progressively:

For example, a single filer with $75,000 gross salary contributing 6% to a 401(k) and $200 per period (bi-weekly) in other pre-tax deductions would have an annual taxable gross of approximately $68,320. After the $14,600 standard deduction, federal taxable income is $53,720. The federal tax on that amount is: 10% on the first $11,600 ($1,160) + 12% on $11,601–$47,150 ($4,266) + 22% on $47,151–$53,720 ($1,445.18) = approximately $6,871 in federal income tax.

Pre-tax deductions like 401(k) contributions and health insurance premiums lower your federal taxable income and reduce the amount of federal tax withheld — a powerful incentive to maximize pre-tax savings vehicles.

When employers hire workers, the cost of employment extends well beyond the agreed-upon salary. Employers must pay their own share of FICA taxes and federal unemployment insurance on top of your gross wages. This is why the total cost to employer is always higher than the employee's stated salary — and understanding this gap can help employees make more informed compensation negotiations.

Employer Social Security: Matches the employee's 6.2% on wages up to the $168,600 Social Security wage base. On a $75,000 salary with no wage base concerns, this is $4,650 per year.

Employer Medicare: Matches the employee's 1.45% with no cap, so on $75,000 in taxable wages, this equals $1,088 per year. Note that employers do not pay the additional 0.9% Medicare surtax — that is an employee-only obligation.

FUTA (Federal Unemployment Tax Act): Employers pay 6% on the first $7,000 of each employee's wages per year, but most employers qualify for a 5.4% credit for paying state unemployment taxes, resulting in an effective rate of 0.6%. The maximum FUTA liability per employee per year is therefore $42 ($7,000 × 0.6%). This calculator uses the 0.6% post-credit rate.

For a single employee earning $75,000, an employer can expect to pay approximately $5,780 in additional payroll taxes annually, bringing the total employer cost to roughly $80,780. This figure is important for businesses budgeting labor costs, setting contractor rates, and evaluating the true cost of a new hire.

Many states also impose State Unemployment Insurance (SUTA) taxes on employers. Rates vary widely by state and are not included in this calculator since they depend on factors like your state's UI tax rate and your company's claims history. Always check your specific state requirements when calculating total payroll costs.

One of the most effective ways to reduce your payroll tax burden is through pre-tax deductions. These are contributions that are deducted from your gross pay before federal income tax (and sometimes FICA) is calculated. By lowering your taxable gross, they reduce the total amount withheld for taxes each pay period, giving you more take-home pay in the short term while also building long-term savings.

401(k) and 403(b) contributions are perhaps the most common pre-tax deductions. In this calculator, you enter a percentage of gross salary (e.g., 6%), and the annual amount is subtracted from your gross before both federal income tax and FICA are calculated. For 2024, the 401(k) employee contribution limit is $23,000 (plus a $7,500 catch-up for those 50 and older). Contributing the full amount could save a 22%-bracket earner over $5,000 in federal income tax alone.

Other pre-tax deductions — such as health insurance premiums under a Section 125 cafeteria plan, HSA (Health Savings Account) contributions, FSA (Flexible Spending Account) deposits, and commuter benefits — are entered in this calculator as a per-period dollar amount. These are multiplied by the number of pay periods to arrive at an annual total, which is then subtracted from your gross before calculating taxable income.

The combined effect of maximizing pre-tax contributions can meaningfully shift your effective tax rate. An employee earning $80,000 who contributes $10,000 to a 401(k) and $3,600 to an HSA reduces their annual taxable gross by $13,600, potentially moving them down a bracket and saving hundreds of dollars in federal taxes. Use this payroll tax calculator to experiment with different contribution percentages and see the real-time impact on your take-home pay.