Between roughly 15% and 40% of a typical paycheck goes to the federal government alone, covering federal income tax, Social Security, and Medicare. Where you land in that range depends on how much you earn, your filing status, and the choices you make on your W-4. State and local income taxes stack on top, and in some places that pushes the total noticeably higher. How much the government takes out of your paycheck is really the sum of several separate withholdings, each with its own rules.
Federal Income Tax
Federal income tax is usually the biggest single line on your pay stub. The U.S. uses a progressive system, so different slices of your income get taxed at different rates. Moving into a higher bracket does not raise the rate on the dollars you already earned in lower ones.
For tax year 2026, the brackets for a single filer are:
- 10% on income up to $12,400
- 12% on $12,401 to $50,400
- 22% on $50,401 to $105,700
- 24% on $105,701 to $201,775
- 32% on $201,776 to $256,225
- 35% on $256,226 to $640,600
- 37% on income above $640,600
Married couples filing jointly get wider brackets. Their 10% bracket covers income up to $24,800, and the top 37% rate doesn’t kick in until income exceeds $768,700.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
Before any of that applies, your employer subtracts a standard deduction from the withholding math. For 2026 that deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 A single filer earning $50,000 isn’t taxed on the first $16,100 at all; withholding is calculated on the remaining $33,900.
Social Security and Medicare
After income tax, the next chunk is FICA. Your employer withholds 6.2% of your gross pay for Social Security and 1.45% for Medicare, then matches both amounts out of its own pocket. The combined rate is 15.3% of wages, split evenly between you and your employer.2Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
Social Security has a ceiling. In 2026 you only pay the 6.2% on the first $184,500 of wages. Every dollar above that is exempt from Social Security withholding.3Social Security Administration. Contribution and Benefit Base Medicare has no cap. If your wages pass $200,000 in a calendar year ($250,000 for married couples filing jointly), your employer must withhold an extra 0.9% Medicare surtax on the excess, and your employer does not match that part.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax
FICA rates are flat, not progressive. Everyone pays the same percentage up to the Social Security cap, which is why lower earners feel FICA more as a share of their total pay than high earners do.
State and Local Income Taxes
Most states collect their own income tax. Rates and structures vary enormously. Some states copy the federal model with progressive brackets; others charge a single flat rate on all income. Eight states have no individual income tax, and workers in those states keep noticeably more of their gross pay.
A handful of cities and counties add their own income tax too, usually a small flat percentage that funds schools, transit, or other local services. Combined state and local income tax can add anywhere from zero to roughly 13% or more depending on where you live and work.
Commuting across state lines complicates things. Many neighboring states have reciprocal agreements that let you pay income tax only to your home state. Where no agreement exists, your home state typically credits you for taxes paid to the work state, but you’ll still file two returns.
Some states also require small payroll deductions for disability insurance or paid family leave, generally in the range of about 0.19% to 1.3% of wages. Only a minority of states require these, so many workers never see them.
Pre-Tax Deductions That Shrink the Bite
Not every deduction raises your total tax. Several voluntary deductions come out before taxes are calculated, which lowers the income the government can tax in the first place.
- 401(k) or 403(b) contributions. For 2026 you can defer up to $24,500 of your salary into a traditional 401(k). Workers 50 and older can add an $8,000 catch-up contribution, and those aged 60 through 63 can contribute an extra $11,250 instead.5Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026
- Health insurance premiums paid through a cafeteria plan under Section 125 come out before federal income tax, Social Security, and Medicare are calculated.6Internal Revenue Service. FAQs for Government Entities Regarding Cafeteria Plans
- Health Savings Account contributions, if you have a high-deductible health plan. In 2026 the limits are $4,400 for individual coverage and $8,750 for family coverage, and payroll contributions are pre-tax.7Internal Revenue Service. Expanded Availability of Health Savings Accounts Under the OBBBA
- Dependent care, adoption assistance, and group-term life insurance up to $50,000 can also run through a cafeteria plan on a pre-tax basis.6Internal Revenue Service. FAQs for Government Entities Regarding Cafeteria Plans
Every dollar routed through these deductions reduces your federal income tax and, in most cases, your FICA for that pay period. Someone contributing $500 a paycheck to a 401(k) isn’t just saving $500 for retirement; they’re also cutting their current taxable income by that amount, which can lower withholding by $100 or more per check depending on their bracket.
Why Bonuses Look Overtaxed
Bonuses, commissions, and other supplemental pay often appear to be taxed more heavily than regular wages. Employers typically withhold a flat 22% federal rate on supplemental pay up to $1 million per year, regardless of your actual bracket. Anything above $1 million in a calendar year is withheld at 37%.8Internal Revenue Service. Publication 15 (2026), Employer’s Tax Guide
That flat rate is just a withholding method, not a separate tax. When you file your return, bonus income gets folded into your total earnings and taxed at your actual marginal rate. If 22% was more than you owed on that money, the difference comes back as part of your refund.
Your W-4 Sets the Number
Your employer isn’t guessing at how much federal tax to withhold. The calculation comes from the Form W-4 you filled out when you were hired. On it you declare your filing status, claim credits for dependents, and can request extra withholding to cover side income or a working spouse.9Internal Revenue Service. About Form W-4, Employee’s Withholding Certificate
A wrong W-4 is the most common reason people owe a surprise tax bill in April or receive an oversized refund. A big refund feels good, but it means you handed the government an interest-free loan all year. Revisit your W-4 after any significant life change: marriage, divorce, a new child, a spouse starting or stopping work, or a big income jump. The IRS offers a free Tax Withholding Estimator that walks through the math.
Some workers can skip federal withholding entirely. If you had zero tax liability last year and expect the same this year, you can claim exempt on your W-4. The exemption expires every calendar year, and you must file a new W-4 by February 15 each year to keep it.10Internal Revenue Service. Topic No. 753, Form W-4, Employees Withholding Certificate Miss that deadline and your employer reverts to withholding as if you had claimed single with no adjustments.
If withholding undershoots your actual liability, the failure-to-pay penalty starts at 0.5% of the unpaid balance per month and caps at 25% of what you owe. An approved payment plan drops that monthly rate to 0.25%, and interest accrues separately and compounds daily.11Internal Revenue Service. Failure to Pay Penalty
Self-Employment: You Pay Both Halves
If you work for yourself, no employer splits FICA with you. You pay both sides: 12.4% for Social Security and 2.9% for Medicare, totaling 15.3% on your net self-employment income.12Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) The Social Security portion stops at the same $184,500 wage base that applies to employees.3Social Security Administration. Contribution and Benefit Base Medicare has no cap, and the 0.9% additional Medicare tax applies once your self-employment income crosses the same thresholds as wage earners.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax
Because nothing is being withheld for you, you’re responsible for quarterly estimated tax payments. Fall short and you can owe an underpayment penalty. The safe harbor: pay at least 90% of your current-year tax liability, or 100% of what you owed last year (110% if your adjusted gross income topped $150,000).13Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty
When More Comes Out: Garnishments
Some deductions aren’t about taxes at all. If you owe certain debts, a court or government agency can order your employer to withhold part of your pay before you ever see it.
For most consumer debts like credit card judgments, federal law caps garnishment at the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage.14Office of the Law Revision Counsel. 15 U.S. Code 1673 – Restriction on Garnishment Child support and alimony orders can take much more. If you’re supporting another spouse or child, courts can garnish up to 50% of your disposable pay for support obligations. If you aren’t supporting anyone else, the limit rises to 60%. Payments more than 12 weeks overdue add another 5%.15U.S. Department of Labor. Fact Sheet 30 – Wage Garnishment Protections of the Consumer Credit Protection Act
Defaulted federal student loans carry their own rules. The loan holder can order your employer to withhold up to 15% of your disposable pay without going to court first.16Federal Student Aid. Collections These garnishments come out after taxes, so the hit to actual take-home pay can feel severe.