Overview of US Federal Taxes

Federal taxes are mandatory contributions paid to the U.S. government to fund national programs such as defense, healthcare, and infrastructure.

Every employee, freelancer, or business owner contributes through income taxes, Social Security, and Medicare deductions automatically withheld from paychecks.

1. Federal Income Tax

The federal income tax is calculated based on your taxable income and filing status (single, married, or head of household).

The Internal Revenue Service (IRS) uses a progressive tax rate system — meaning the higher your income, the higher the tax bracket applied. As of 2025, the federal tax brackets range from 10% to 37%.

Formula: Federal Tax = Taxable Income × Applicable Tax Rate – Tax Credits

2. Social Security Tax (FICA Part 1)

Social Security funds retirement, disability, and survivor benefits.

Employees pay 6.2% of their gross wages, while employers contribute an equal share.

For self-employed individuals, the total 12.4% rate applies because they act as both employer and employee.

Key Limit: In 2025, the wage base limit for Social Security tax is $168,600 — earnings above this amount aren’t taxed for Social Security.

3. Medicare Tax (FICA Part 2)

Medicare tax finances healthcare for individuals aged 65 and older. The standard rate is 1.45% for employees and 1.45% for employers, with no income cap.

However, high-income earners (above $200,000 for single filers) pay an Additional Medicare Tax of 0.9%.

Hourly Paycheck US Federal

An Hourly Paycheck Calculator helps U.S. employees estimate their take-home pay based on hourly wages, total hours worked, and federal tax deductions. It automatically converts your gross income into an accurate net pay estimate by applying IRS tax brackets and mandatory withholdings such as federal income tax, Social Security, and Medicare. This makes it easier to understand exactly how much of your paycheck you’ll keep after taxes.

For example, if you earn $25 per hour and work 40 hours a week, your gross pay is $1,000. After accounting for roughly 15–20% in federal deductions, your net pay would be around $800–$850, depending on your filing status, number of dependents, and any pre-tax benefits. The calculator uses the most recent federal tax rates to ensure accuracy, following the IRS progressive tax system, where higher income levels are taxed at higher rates.

Federal payroll deductions include FICA contributions, which consist of 6.2% for Social Security (up to the annual wage limit) and 1.45% for Medicare, with an additional 0.9% Medicare surtax for higher earners. These mandatory deductions are applied automatically to every paycheck.

By using the Hourly Paycheck Calculator, hourly employees, freelancers, and part-time workers can instantly see how much money they will actually take home each pay period. It’s especially useful for budgeting, financial planning, and understanding the impact of overtime or bonuses. Whether you’re paid weekly, biweekly, or monthly, this tool provides a clear, reliable snapshot of your real earnings after all federal deductions are applied.

Salary Paycheck US Federal

A Salary Paycheck Calculator helps U.S. employees estimate their net salary after all federal deductions and tax withholdings are applied. It calculates how much of your gross annual salary you actually take home by accounting for federal income tax, Social Security, and Medicare contributions. The calculator follows the latest IRS tax brackets and FICA rules to provide accurate paycheck results for salaried workers across the United States.

For instance, if your annual salary is $60,000, your gross monthly pay equals $5,000. After deducting approximately 15–25% in federal taxes and FICA contributions, your net pay may be around $3,750–$4,250, depending on your filing status, dependents, retirement contributions, and health insurance premiums. These variables directly affect your take-home pay, as employers use your Form W-4 details to calculate the exact amount of income tax withholding from each paycheck.

The Salary Paycheck Calculator also includes FICA taxes, which consist of 6.2% for Social Security and 1.45% for Medicare. Higher earners may also pay an additional 0.9% Medicare surtax. These federal payroll deductions are mandatory for most employees and automatically withheld by employers.

By using the Salary Paycheck Calculator, full-time employees and professionals can easily estimate how much they’ll actually receive after taxes each pay period. It’s an essential tool for financial planning, salary negotiations, and budget management, helping you understand how your gross income, deductions, and withholding allowances affect your net earnings. Whether you’re paid monthly, biweekly, or semi-monthly, this calculator gives a precise view of your federal take-home pay.

2025 Federal Income Tax Brackets (returns due April 2026)