Payroll Tax Calculator by State

Federal taxes: Social Security 6.2% on wages up to $184,500 (2026), Medicare 1.45% on all wages plus 0.9% additional on earnings over $200,000 single / $250,000 MFJ, and federal income tax based on W-4. State income tax (where applicable, 0% in TX/FL/NV/SD/AK/WA/WY/TN/NH), and possibly local income tax. Some states add SDI (CA 1.1% with no wage cap), SUI, or paid family leave premiums.

Employees pay 6.2% Social Security + 1.45% Medicare (total 7.65%) on their wages. Employers match this 7.65%, plus pay FUTA (0.6% of first $7,000) and state SUTA (varies). The total employer tax burden is typically 7.65% to 12% of payroll. Self-employed pay both halves as SECA (15.3%) and deduct half of it above the line.

The 2026 Social Security wage base limit is $184,500 (up from $176,100 in 2025). Wages above this amount are not subject to Social Security tax for either employer or employee, though Medicare and additional Medicare continue. The wage base is adjusted annually based on the national average wage index.

Bonuses can be taxed two ways. The flat-rate method (most common at large employers) withholds federal at a flat 22% (or 37% on bonuses over $1M annually). The aggregate method adds the bonus to your most recent paycheck and withholds at your effective marginal rate. Either way, your actual tax owed is computed at year-end - over-withholding becomes a refund.