7.65% (Standard)
1.45% (Medicare Only – for higher earners with limits)
Estimated Taxes
Total Estimated Taxes: $0.00
Net Income After Taxes: $0.00
Understanding Your Wage Taxes
Calculating the taxes on your wages is a fundamental aspect of personal finance. In most countries, including the United States, your income is subject to various taxes, primarily federal income tax and FICA taxes (Social Security and Medicare). This calculator helps you estimate these amounts based on your gross wages and applicable tax rates.
Federal Income Tax
Federal income tax is levied by the U.S. federal government. It's a progressive tax, meaning higher earners pay a larger percentage of their income in taxes. This is why tax brackets are used. Your income is taxed at different rates depending on which bracket it falls into. For simplicity, this calculator uses a single, marginal tax bracket rate to estimate the total federal income tax. In reality, the tax calculation is more complex, involving tax tables and potentially deductions and credits that can lower your taxable income.
FICA Taxes
FICA stands for the Federal Insurance Contributions Act. This tax funds Social Security and Medicare programs.
Social Security: Currently, the tax rate is 6.2% on wages up to an annual limit (which changes yearly).
Medicare: Currently, the tax rate is 1.45% on all wages, with no income limit. An additional Medicare tax applies to higher earners.
The standard FICA rate combined is 7.65% (6.2% + 1.45%). For high earners, the Social Security portion may not apply if they've reached the wage base limit. This calculator uses a simplified approach, allowing selection of the standard 7.65% or just the Medicare portion (1.45%).
How This Calculator Works
This calculator performs the following estimations:
Federal Income Tax: It takes your 'Annual Gross Wages' and multiplies it by the selected 'Federal Income Tax Bracket' percentage.
Formula: Federal Income Tax = Annual Gross Wages × (Federal Tax Bracket / 100)
FICA Taxes: It takes your 'Annual Gross Wages' and multiplies it by the selected 'FICA Tax Rate' percentage.
Formula: FICA Tax = Annual Gross Wages × (FICA Rate / 100)
Total Estimated Taxes: It sums the calculated Federal Income Tax and FICA Tax.
Formula: Total Taxes = Federal Income Tax + FICA Tax
Net Income: It subtracts the 'Total Estimated Taxes' from your 'Annual Gross Wages'.
Formula: Net Income = Annual Gross Wages – Total Taxes
Disclaimer: This calculator provides an estimation for educational purposes only. It does not account for all tax laws, deductions, credits, state taxes, or specific individual circumstances. Consult with a qualified tax professional for accurate tax advice.
function calculateTaxes() {
var annualWagesInput = document.getElementById("annualWages");
var taxBracketInput = document.getElementById("taxBracket");
var ficaRateInput = document.getElementById("ficaRate");
var resultTaxAmount = document.getElementById("taxAmount");
var resultNetIncome = document.getElementById("netIncome");
var annualWages = parseFloat(annualWagesInput.value);
var taxBracketRate = parseFloat(taxBracketInput.value);
var ficaRate = parseFloat(ficaRateInput.value);
if (isNaN(annualWages) || annualWages < 0) {
alert("Please enter a valid annual gross wage amount.");
return;
}
if (isNaN(taxBracketRate) || taxBracketRate 100) {
alert("Please select a valid federal tax bracket.");
return;
}
if (isNaN(ficaRate) || ficaRate 100) {
alert("Please select a valid FICA tax rate.");
return;
}
var federalTax = annualWages * (taxBracketRate / 100);
var ficaTax = annualWages * (ficaRate / 100);
var totalTaxes = federalTax + ficaTax;
var netIncome = annualWages – totalTaxes;
resultTaxAmount.textContent = "$" + totalTaxes.toFixed(2);
resultNetIncome.textContent = "$" + netIncome.toFixed(2);
}