You are able to use our United States Salary Tax Calculator in order to determine how much of your annual salary goes into your bank account, and how much of it goes towards payments such as:
- - Federal taxes
- - State taxes
- - Medicare
- - Social Security
- - Other payments
While there are many deductions made to your salary, there are often deductions made from your taxable amount based on certain living circ*mstances or health concerns. After entering all of the necessary information, including your salary amount and filing status, simply click on the 'Calculate' button. Once you have clicked on the calculate button, a detailed breakdown of your annual tax payments will be shown, along with a graph detailing these payments. On top of this, the breakdown will include details about the payments made annually, monthly, weekly, and daily, providing you with as much detail as possible about the tax that you will be paying.
The results that the calculator give you are calculated with consideration to the most recent income tax and social security information available for the tax year 2023/24.
Using the United States Tax Calculator
Using the United States Tax Calculator is fairly simple.
- First, enter your 'Gross Salary' amount where shown.
- Next, select the 'Filing Status' drop-down menu and choose which option applies to you. If you are filing taxes and are married, you have the option to file your taxes along with your partner.
- Next, select the 'State' drop-down menu and choose whichever state you live in. This section allows for state tax to be calculated, although the option to not consider state tax is given.
- Next, enter the number of dependents that you will be declaring in the box marked 'No. Dependents'.
- Finally, if there are any other deductions that you would like to apply then enter them in the 'Monthly Deductions' box. This includes any retirement plan contributions that you may be putting aside each month.
After completing the above steps and assuring yourself that you have entered all of the correct information, click on the 'Calculate' button which will then display an annual, monthly, weekly, and daily breakdown of your taxes, along with providing you a graphical representation of these analytics. All of the taxes that are taken into account and that you are able to see when using this calculator include:
- - Gross Income
- - Taxable Income
- - Federal Tax
- - State Tax
- - Social Security
- - Medicare
- - Total FICA Costs (Federal Insurance Contributions Act)
How is the Tax Calculation Done?
The calculator takes your gross income, along with the other information you provided it with, and uses it to calculate the final amount that you take home. For example, if you are filing your taxes as 'single', have no children, are below the age of 65, and you are not blind, with the consideration of the standard tax deduction your calculation would look like this:
- Starting with your salary of $40,000, your standard deduction of $13,850 is deducted (the personal exemption of $4,050 is eliminated for 2018–2025). This makes your total taxable income amount $26,150.
- Given that the first tax bracket is 10%, you will pay 10% tax on $11,000 of your income. This comes to $1,100.
- Given that the second tax bracket is 12%, once we have taken the previously taxed $11,000 away from $26,150 we are left with a total taxable amount of $15,150.
- After taking 12% tax from that $15,150 we are left with $1,818 of tax.
- Overall, the total amount of tax you will be paying is $2,918 ($1,100 + $1,818).
While income tax is the largest of the costs, many others (listed above) are taken into account in the calculation. For example, FICA taxes are calculated as follows:
- Starting with your gross income of $40,000, 6.2% of that is taken for Social Security costs, taking $2,480 from you.
- 1.45% of your gross income is taken for your Medicare costs, taking $580 from you.
- Your employer pays FICA tax, which is $3,060 (the addition of both your Social Security costs and your Medicare costs).
- The total federal tax that you would pay is $5,978 (equal to your income tax, on top of your Medicare and Social Security costs).
With all this in mind, the total amount that you would take home is $34,022.
Estimate your Earned Income Tax Credit (EIC or EITC) for 2023 tax year with our EIC Calculator
