Federal Salary Paycheck Calculator
Calculate your net pay or take home pay by entering your per-period or annual salary along with the pertinent federal, state, and local W4 information into this free federal paycheck calculator.
How do I complete a paycheck calculation?
What is gross pay?
What is the gross pay method?
If my paycheck has a bonus, is it taxed differently?
What is pay frequency?
How is pay frequency used to calculate payroll?
For salaried employees, the number of payrolls in a year is used to determine the gross paycheck amount.
For example, let's look at a salaried employee who is paid $52,000 per year:
- If this employee's pay frequency is weekly the calculation is: $52,000 / 52 payrolls = $1,000 gross pay
- If this employee's pay frequency is semi-monthly the calculation is: $52,000 / 24 payrolls = $2,166.67 gross pay
What is the difference between bi-weekly and semi-monthly?
What are my withholding requirements?
How do I know if I’m exempt from federal taxes?
You are tax-exempt when you do not meet the requirements for paying tax. This usually happens because your income is lower than the tax threshold. For 2022, you need to make less than $12,950 for single filers, $25,900 for joint filers, or $19,400 for heads of household. For 2023 the standard deductions increased to $13,850 for single filers, $27,700 for joint filers, and $20,800 for heads of household.
If you are 65 or older, or if you are blind, different income thresholds may apply. Check the IRS Publication 505 for current laws.
Claiming exempt from federal tax withholding on your W4 when you aren’t eligible isn’t illegal but it can have major consequences. You might receive a large tax bill and possible penalties after you file your tax return.
What’s the difference between single and head of household?
What was updated in the Federal W4 in 2020?
In 2020, the IRS updated the Federal W4 form that eliminated withholding allowances. The redesigned Form W4 makes it easier for your withholding to match your tax liability. Here’s how to answer the new questions:
- Step 2: check the box if you have more than one job or you and your spouse both have jobs. This will increase withholding.
- Step 3: enter an amount for dependents.The old W4 used to ask for the number of dependents. The new W4 asks for a dollar amount. Here’s how to calculate it: If your total income will be $200k or less ($400k if married) multiply the number of children under 17 by $2,000 and other dependents by $500. Add up the total.
- Step 4a: extra income from outside of your job, such as dividends or interest, that usually don't have withholding taken out of them. By entering it here you will withhold for this extra income so you don't owe tax later when filing your tax return.
- Step 4b: any additional withholding you want taken out. Any other estimated tax to withhold can be entered here. The more is withheld, the bigger your refund may be and you’ll avoid owing penalties.
If your W4 on file is in the old format (2019 or older), toggle "Use new Form W-4" to change the questions back to the previous form. Employees are currently not required to update it. However if you do need to update it for any reason, you must now use the new Form W-4.
How is Federal Withholding (Federal Income Tax) calculated?
The more taxable income you have, the higher tax rate you are subject to. This calculation process can be complex, so PaycheckCity’s free calculators can do it for you! To learn how to manually calculate federal income tax, use these step-by-step instructions and examples.
The federal income tax is a tax on annual earnings for individuals, businesses, and other legal entities. All wages, salaries, cash gifts from employers, business income, tips, gambling income, bonuses, and unemployment benefits are subject to a federal income tax.
For each payroll, federal income tax is calculated based on the answers provided on the W-4 and year to date income, which is then referenced to the tax tables in IRS Publication 15-T. The current tax rates are 0%, 10%, 12%, 22%, 24%, 32%, 35%, or 37%. Again, the percentage chosen is based on the paycheck amount and your W4 answers.
What’s the difference between a deduction and withholding?
In addition to withholding federal and state taxes, part of your gross income might also have to contribute to deductions. These are known as “pre-tax deductions” and include contributions to retirement accounts and some health care costs. For example, when you look at your paycheck you might see an amount deducted for your company’s health insurance plan and for your 401k plan. Pre-tax deductions result in lower take-home, but also means less of your income is subject to tax. Some deductions are “post-tax”, like Roth 401(k), and are deducted after being taxed.
In our calculators, you can add deductions under “Benefits and Deductions” and select if it’s a fixed amount, a percentage of the gross-pay, or a percentage of the net pay. For hourly calculators, you can also select a fixed amount per hour. For pre-tax deductions, check the Exempt checkboxes, meaning the deduction will be taxed.
State Salary Calculators
Select your state from the list below to see its salary calculator.
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
- Washington DC
- Puerto Rico
- American Samoa
- Northern Mariana Islands
- US Virgin Islands