1. What is Income Tax?

Income tax is a tax imposed on individuals or entities that varies with respective income or profits. In the US, income taxes are levied at federal, state, and sometimes local levels, along with FICA taxes for Social Security and Medicare.

2. How Does the Calculator Work?

The calculator uses current tax brackets and rates:

Where:

• Federal Tax — Based on IRS tax brackets
• State Tax — Varies by state (some states have no income tax)
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Importance of Tax Calculation

Details: Understanding your tax liability helps with financial planning, budgeting, and ensuring you're withholding the correct amount from paychecks.

4. Using the Calculator

Tips: Enter your annual gross income, select your state and filing status. The calculator will estimate your federal, state, and FICA taxes.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax calculations exact?
A: This provides estimates based on standard deductions. Actual taxes may vary based on deductions, credits, and other factors.

Q2: Why do some states show $0 state tax?
A: States like Texas and Florida have no state income tax.

Q3: What's included in FICA?
A: FICA includes Social Security (6.2% up to wage base limit) and Medicare (1.45% with additional 0.9% for high earners).

Q4: How often should I check my tax withholding?
A: Review whenever you have major life changes (marriage, new job, child) or at least annually.

Q5: Are bonuses taxed differently?
A: Bonuses are typically withheld at 22% federally but are ultimately taxed as ordinary income.