1. What is the Salary Tax Calculator?

The Salary Tax Calculator estimates your federal income tax and FICA contributions (Social Security and Medicare) for 2024 in Austin, Texas. Note that Texas has no state income tax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated using 2024 IRS tax brackets based on filing status
• FICA — Social Security (6.2% up to $168,600) + Medicare (1.45% + 0.9% for income over $200,000)

Explanation: The calculator applies progressive tax rates to different portions of your income based on your filing status.

3. Importance of Tax Calculation

Details: Understanding your tax liability helps with financial planning, budgeting, and ensuring proper withholding from your paycheck.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator include Texas state taxes?
A: No, Texas doesn't have a state income tax. This calculator only estimates federal taxes and FICA.

Q2: Are deductions and credits considered?
A: This is a simplified calculator that doesn't account for deductions, credits, or other tax situations.

Q3: What about local taxes in Austin?
A: Austin doesn't have a local income tax, though property and sales taxes apply separately.

Q4: How accurate is this calculator?
A: It provides a good estimate but for precise calculations, consult a tax professional or use IRS worksheets.

Q5: Why is Social Security capped?
A: Social Security tax only applies to income up to $168,600 in 2024 (this amount adjusts annually).