Payroll Deductions Calculator

Definitions

Pay period

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).

Filing status

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.

Gross pay

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 withholding is calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2017, each allowance you claim is equal to $4,050 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 withholding. 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 2017, the maximum contribution to a 401(k) or 403(b) is $18,000 per year for individuals under 50 and $24,000 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 $4,050 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local tax withholding. The tax rate displayed is an assumption that may or may not be relevant to your situation.

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.

Post-tax deductions

Enter any payroll deductions made by your employer that are made with after-tax income.

Post-tax reimbursements

Enter any reimbursements made by your employer that are after-tax.

Year-to-date earnings

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 2017, year-to-date earnings is not required or used for incomes under $127,200 per year, or if your current year-to-date earnings plus your current payroll does not exceed $127,200.

Social Security tax

For 2017, Social Security tax is calculated as your gross earnings times 6.2%. For 2017, incomes over $127,200 that have already had the maximum Social Security tax of $7,886 withheld will not have additional withholding. 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

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 withholding was calculated by:

1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
2. Subtracting the value of allowances allowed (for 2017, this is $4,050 multiplied by withholding allowances claimed).
3. Determining your annual tax by using the tables below (single and married rates, respectively).
4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal tax withholding to be deducted per pay period.

Single Withholding Rates 2017^*

Annual taxable income between these amounts	Annual withholding	Withhold additional % of income over this amount
$0 - $2,300.00	$0.00
$2,300.00 - $11,625.00	$0.00	plus 10% of income over $2,300
$11,625.00 - $40,250	$932.50	plus 15% of income over $11,625
$40,250 - $94,200	$5,226.25	plus 25% of income over $40,250
$94,200 - $193,950	$18,713.75	plus 28% of income over $94,200
$193,950 - $419,000	$46,643.75	plus 33% of income over $193,950
$419,000 - $420,700	$120,910.25	plus 35% of income over $419,000
$420,700 - (no limit)	$121,505.25	plus 39.6% of income over $420,700
*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2017

Married Withholding Rates 2017^*

Annual taxable income between these amounts	Annual withholding	Withhold additional % of income over this amount
$0 - $8,650	$0.00
$8,650 - $27,300	$0.00	plus 10% of income over $8,650
$27,300 - $84,550	$1,865.00	plus 15% of income over $27,300.00
$84,550 - $161,750	$10,452.50	plus 25% of income over $84,550
$161,750 - $242,000	$29,752.50	plus 28% of income over $161,750
$242,000 - $425,350	$52,222.50	plus 33% of income over $242,000
$425,350 - $479,350	$112,725.50	plus 33% of income over $425,350
$479,350 - (no limit)	$131,628.00	plus 39.6% of income over $479,350
*Source: http://www.irs.gov Publication 15 Income Tax Withholding Tables for 2017