Main paycheck deductions: Federal Income Tax (10-37% based on income), State Income Tax (0-13%), Social Security (6.2% on first $168,600), Medicare (1.45% on all income). Example: $75,000 salary ≈ $56,000 net ($19,000 taxes = 25%).
- Federal: Progressive brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%)
- FICA (Social Security + Medicare): 7.65% flat rate
- State: 9 states have no income tax
- Pre-tax deductions (401k, health) reduce taxable income
| Deduction Type | Rate | Annual Amount ($75K salary) | Notes |
|---|---|---|---|
| Federal Income Tax | ~12-22% | ~$6,000-9,000 | Based on brackets |
| State Income Tax | 0-10% | $0-$5,000 | Varies by state |
| Social Security | 6.2% | $4,650 | Capped at $168,600 |
| Medicare | 1.45% | $1,088 | No cap |