United States Salary Calculator

Understanding how your salary is taxed in the United States is essential for financial planning. The US tax system consists of federal income tax, state income tax (in most states), and payroll taxes. Let's break down each component:

Federal Income Tax

The federal government uses a progressive tax system, meaning your tax rate increases as your income rises. For 2025, there are seven tax brackets ranging from 10% to 37%. However, you don't pay the same rate on all your income—only the portion that falls into each bracket.

Standard Deduction

Before calculating your federal tax, you can claim a standard deduction that reduces your taxable income. For 2025:

• Single filers: $15,000
• Married filing jointly: $30,000
• Head of household: $22,500
• Married filing separately: $15,000

This means if you're single and earn $60,000, your taxable income after the standard deduction would be $45,000 ($60,000 - $15,000).

Progressive Tax Brackets

Once you've determined your taxable income (after the standard deduction), it's taxed at progressive rates. For example, a single filer in 2025 pays:

• 10% on the first $11,925 of taxable income
• 12% on income between $11,925 and $48,475
• 22% on income between $48,475 and $103,350
• 24% on income between $103,350 and $197,300
• 32% on income between $197,300 and $250,525
• 35% on income between $250,525 and $626,350
• 37% on income over $626,350

State Income Tax

In addition to federal taxes, most states levy their own income tax. However, nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. State tax rates and structures vary significantly:

• Flat rate states (like Illinois at 4.95% or Pennsylvania at 3.07%) apply the same rate to all taxable income
• Progressive states (like California and New York) use multiple brackets with increasing rates
• Some states offer their own standard deductions or exemptions

Social Security and Medicare (FICA)

All employees pay FICA taxes (Federal Insurance Contributions Act), which fund Social Security and Medicare:

• Social Security: 6.2% of your income, but only on the first $168,600 in 2025 (this is called the wage base limit)
• Medicare: 1.45% on all your income
• Additional Medicare Tax: An extra 0.9% on income over $200,000 for single filers or $250,000 for married couples filing jointly

Unlike income tax, FICA taxes are not reduced by the standard deduction—they're calculated directly on your gross salary.

Let's walk through a detailed example to see how taxes are calculated for a single person earning $60,000 per year in 2025:

Note: This example assumes no state income tax. If you live in a state with income tax, your take-home pay would be lower. Use the calculator above to see your specific situation based on your state and filing status.

The United States has a progressive federal income tax system with rates ranging from 10% to 37%. In addition to federal taxes, most states also levy their own income taxes, though some states like Texas and Florida have no state income tax.

All employees are subject to FICA (Federal Insurance Contributions Act) taxes, which include Social Security (6.2% on income up to $168,600 in 2025) and Medicare (1.45% on all income, plus an additional 0.9% on income over $200,000 for high earners).

Your filing status (single, married filing jointly, etc.) significantly affects your tax liability. The standard deduction and various tax credits can also reduce your overall tax burden.

State tax rates vary widely across the country. Some states use flat rates (like Illinois at 4.95%), while others use progressive brackets. Nine states have no state income tax at all, which can significantly impact your take-home pay depending on where you live.