1. What is This Calculator?

This calculator helps Pakistani professionals and workers in New York City estimate their tax liabilities for 2025-2026. It calculates federal, state, city taxes and FICA contributions based on your salary and filing status.

2. How Does the Calculator Work?

The calculator uses the following formula:

Each component is calculated separately based on progressive tax brackets and specific rules for New York City residents.

3. Tax Components Explained

Federal Income Tax: Progressive tax based on IRS brackets for 2025 (projected rates).

New York State Tax: Progressive tax with rates specific to New York State.

New York City Tax: Local income tax for NYC residents with its own rate structure.

FICA: Social Security (6.2% up to wage base limit) and Medicare (1.45% + 0.9% for high earners).

4. Using the Calculator

Instructions: Enter your annual salary in USD and select your filing status. The calculator will estimate your tax breakdown and net income after all taxes.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax rates accurate for 2025-2026?
A: These are projected rates based on current tax laws and inflation adjustments. Actual rates may vary slightly.

Q2: Do I pay NYC taxes if I live outside the city?
A: No, NYC taxes only apply to residents of the five boroughs.

Q3: Are there tax treaties between US and Pakistan?
A: Currently, there is no comprehensive tax treaty between the US and Pakistan that affects income tax.

Q4: Can I claim tax credits as a Pakistani worker?
A: You may be eligible for certain credits depending on your visa status and family situation.

Q5: How accurate is this calculator?
A: This provides a good estimate but doesn't account for all possible deductions, credits, or special circumstances.