1. What is the Salary Tax Calculator?

The Salary Tax Calculator estimates your federal income tax and FICA taxes (Social Security and Medicare) for 2024 based on your salary and filing status. This calculator is specific to Austin, Texas residents (which 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 for either Single or Married Filing Jointly status
• FICA Tax — Combination of Social Security (6.2% on first $168,600) and Medicare (1.45% + 0.9% for high earners)

Explanation: The calculator first determines your federal tax bracket based on income and filing status, then adds the mandatory FICA contributions.

3. Importance of Tax Calculation

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why is this specific to Austin, Texas?
A: Texas has no state income tax, so only federal taxes and FICA apply. This makes the calculation simpler than in states with income tax.

Q2: Are local taxes included?
A: No, Austin doesn't have a local income tax. Only federal taxes and FICA are calculated.

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

Q4: Is the Social Security cap accurate for 2024?
A: Yes, the $168,600 Social Security wage base is correct for 2024.

Q5: How accurate is this calculator?
A: It provides a good estimate but for precise calculations, consult a tax professional or use IRS worksheets.