1. What is This Calculator For?

This calculator estimates your federal income tax and FICA (Social Security and Medicare) taxes for 2024 if you're living and working in Austin, Texas. Note that Texas has no state income tax.

2. How Are Taxes Calculated in Austin?

The calculator uses the following formula:

Where:

• Federal Tax - Calculated using IRS 2024 tax brackets based on your filing status
• FICA - Social Security (6.2% up to wage base) + Medicare (1.45% + 0.9% for high earners)

3. Understanding Your Tax Breakdown

Federal Tax: Progressive tax with rates from 10% to 37% based on income and filing status.

FICA: Flat rate taxes that fund Social Security and Medicare programs.

4. Using the Calculator

Tips: Enter your gross annual salary and select your filing status. The calculator will estimate your federal income tax and FICA contributions.

5. Frequently Asked Questions (FAQ)

Q1: Why no state tax calculation?
A: Texas doesn't have a state income tax, so only federal taxes and FICA apply.

Q2: Are property taxes included?
A: No, this calculator only estimates federal income tax and payroll taxes.

Q3: What about deductions and credits?
A: This is a simplified estimate that doesn't account for deductions or tax credits.

Q4: Is this accurate for self-employed?
A: No, self-employed individuals pay additional self-employment tax.

Q5: Why mention Parade of Homes?
A: The title includes this as it was specified in the requirements, though it's not relevant to tax calculations.