Payroll Deductions Calculator
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Payroll Deduction Calculator
Calculating payroll deductions doesn't have to be a headache. Use this handy tool to fine-tune your payroll information and deductions, so you can provide your staff with accurate paychecks and get deductions right the first time around. Updated with current IRS withholding information for 2010
Financial Calculators from
|Marginal tax inputs:|
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|Your taxes are estimated at $11,139.|
This is 15.47% of your total income of $72,000. 15.47% would also be your average tax rate. Your income puts you in the 25% tax bracket. At higher incomes, exemptions, many deductions and many credits are phased out. This increases your tax bill and your marginal tax rate. With these phase outs, adding $1,000 to your income would result in a 25% marginal tax rate.
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- Federal Income Tax Rates
- Use the table below to assist you in estimating your federal tax rate.
Filing Status and Income Tax Rates 2017* Tax Rate Married Filing Jointly or Qualified Widow(er) Single Head of Household Married Filing Separately 10% $0 - $18,650 $0 - $9,325 $0 - $13,350 $0 - $9,325 15% $18,650 - $75,900 $9,325 - $37,950 $13,350 - $50,800 $9,325 - $37,950 25% $75,900 - $153,100 $37,950 - $91,900 $50,800 - $131,200 $37,950 - $76,550 28% $153,100 - $233,350 $91,900 - $191,650 $131,200 - $212,500 $76,550 - $116,675 33% $233,350 - $416,700 $191,650 - $416,700 $212,500 - $416,700 $116,675 - $208,350 35% $416,700 - $470,700 $416,700 - $418,400 $416,700 - $444,550 $208,350 - $235,350 39.6% Over $470,700 Over $418,400 Over $444,550 Over $235,350*Caution: Do not use these tax rate schedules to figure 2016 taxes. Use only to figure 2017 estimates. Source: Rev. Proc. 2016-55
- Wages, salaries, tips, etc.
- This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. For tax filing purposes this would be the same as your Adjusted Gross Income (however the calculator is unable to take lower capital gains taxes into consideration).
- Filing status
- Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
Filing Status Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately". Qualified Widow(er) Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider. Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you. Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".
For 2017, the standard deductions are:
Standard Deduction for 2017 Federal Income Tax Filing Status Standard Deduction Married Filing Joint $12,700 Qualified Widow(er) $12,700 Single $6,350 Heads of Household $9,350 Married Filing Separately $6,350
- Are you someone's dependent?
- Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
- Number of additional dependents
- A dependent is someone you support and for whom you can claim a dependency exemption. In 2017, each dependent you claim entitles you to receive a $4,050 reduction in your taxable income.
- Dependents qualifying for child tax credit
- You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.
- Itemized deductions
- This is the total of your itemized deductions that you can include on schedule A of your Federal income taxes. For most people this includes state income taxes paid for the year, interest on a mortgage and any charitable contributions. Other itemized deductions include certain investment expenses, medical expenses exceeding 7.5% of your adjusted gross income, and some moving expenses.
Your standard deduction will be automatically calculated for you based on the filing status and number of dependents you enter. If the number you enter here is lower, your standard deduction will be used to determine your average tax rate.
This is how often you are paid. Your selections are: Weekly (52 paychecks per year), Every other week (26 paychecks per year), Twice a month (24 paychecks per year), Monthly (12 paychecks per year), and Annually (one paycheck per year).
This is your income tax filing status. The choices are 'Single' and 'Married'. Choose 'Married' if you are married or file as 'head of household'. Choose 'Single' if you file your taxes as a single person or if you are married but file separately.
This is your gross pay, before any deductions, for the pay period. Please enter a dollar amount from $1 to $1,000,000.
Number of allowances
When your Federal income tax withholdings are calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2014, each allowance you claim is equal to $3,950 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you should claim depends largely on the number of dependents you have and your itemized deductions. This calculator allows from 0 to 99 allowances.
401(k)/403(b) plan withholding
This is the percent of your gross income you put into a taxable deferred retirement account such as a 401(k) or 403(b). While increasing your retirement account savings does lower your take home pay, it also lowers your Federal income tax withholdings. The impact on your paycheck might be less than you think. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to account for FICA (Social Security and Medicare) taxes. Please note that your 401(k) or 403(b) plan contributions may be limited to less than 80% of your income. Check with your plan administrator for details. For 2014, the maximum contribution to a 401(k) or 403(b) is $17,500 per year for individuals under 50 and $23,000 for individuals 50 or older.
Employee paid health insurance
Health insurance premiums deducted from your pay. Do not include any amounts paid directly by your employer. Your health insurance premiums are not subject to FICA or Medicare taxes.
State and local taxes
This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $3,950 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.
Other pre-tax deductions
Enter any other deductions that is made with pre-tax income. This amount will not be subject to income taxes, but is taxable in regards to require FICA and Medicare.
Enter any payroll deductions made by your employer that are made with after-tax income.
Enter any reimbursements made by your employer that are after-tax.
Your current year gross earnings that were subject to FICA taxes (Social Security tax and Medicare tax). This total should not include the current payroll period or any income from other sources or employers. We use this amount to determine if you are required to have Social Security tax or additional Medicare tax withheld for the current payroll period. Typically, this is your gross earnings minus employer paid health insurance and any Flexible Spending Account (FSA) contributions. In 2014, year-to-date earnings is not required or used for incomes under $117,000 per year, or if your current year-to-date earnings plus your current payroll does not exceed $117,000.
Social Security tax
For 2014, Social Security tax is calculated as your gross earnings times 6.2%. For 2014, incomes over $117,000 that have already had the maximum Social Security tax of $7,254 withheld will not have additional withholdings. Please note that if you have other wages or employers this calculator does not make any assumptions as to the total Social Security tax withheld for the current year other than the actual inputs for this calculator. This tax is also referred to as the Federal Insurance Contributions Act Old Age Survivors and Disability Insurance (FICA OASDI).
Medicare tax is calculated as your gross earnings times 1.45%. Unlike the Social Security tax, there is no annual limit to the Medicare tax. Starting in 2013, an additional Medicare tax of 0.9% is withheld on all gross earnings paid in excess of $200,000 in a calendar year. If you enter an amount for the year-to-date gross earnings, this additional Medicare tax will be calculated based on the current period's gross earnings that exceed the annual $200,000 threshold. If no year-to-date amount is entered, any additional Medicare tax withholding will be calculated only for any gross earnings in excess of $200,000 for the current payroll period. If year-to-date wages prior to the current payroll period have exceeded $200,000, the year-to-date wages must be entered to calculate an accurate additional Medicare tax.
Federal tax withholding calculations
Federal income tax withholdings were calculated by:
- Multiplying taxable gross wages by the number of pay periods per year to compute your annual wages.
- Subtracting the value of allowances allowed (for 2014, this is $3,950 multiplied by withholding allowances claimed).
- Determining you annual tax by using the tables below (single and married rates, respectively).
- Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.