How Much Is Taken Out of My Paycheck for Taxes?
It might be surprising to see how much is deducted for taxes when looking at the paycheck. In Texas, these deductions can differ based on several factors like federal tax requirements and FICA taxes as well as any pre-tax contributions. Below, we break down what to expect in terms of how much is taken out of a paycheck for taxes.
Federal Tax Deductions
Federal Income Tax
This item is calculated in accordance with the revenue level, filing status and other details established on the Form W-4.
Federal income tax can start at 10% and rise to 37%. Yet, the exact amount is determined by how the withholding form has been filled.
FICA Taxes
Social Security Tax: This takes 6.2% of the gross pay up to a wage limit ($176,100 for 2025).
Medicare Tax: Deducts 1.45% of the gross pay. For high earners (over $200,000 for single filers) an additional 0.9% may be applied.
Pre-Tax Deductions (If Applicable)
Employers usually present benefits that decrease the taxable earnings as exemplified below:
401(k) or Retirement Plan Contributions
Contributions might change from 5% to 10% of gross pay.
Health Insurance Premiums
These are deducted pre-tax. The amount can be $50–$200 or more per paycheck.
Flexible Spending Accounts (FSAs)
Contributions for healthcare or dependent care are also deducted before taxes.
Example: How Deductions Impact Net Pay in Texas
| Item | Amount | Calculation |
|---|---|---|
| Gross Pay | $5,000 | - |
| Federal Income Tax (estimated) | $600 | 12% of $5,000 |
| Social Security and Medicare (FICA) | $382.50 | 7.65% of $5,000 |
| 401(k) Contribution | $250 | 5% of $5,000 |
| Health Insurance Premium | $200 | - |
| Total Deductions | $1,432.50 | Sum of all deductions |
| Net Pay | $3,567.50 | $5,000 - $1,432.50 |
Available Calculation Tools
The net amount can be calculated with a detailed breakdown using the tools below:
Key Takeaway
The paycheck deductions include federal income tax and FICA taxes alongside potential pre-tax contributions. A structured financial strategy requires an understanding of such deductions. For further assistance, contact Dimov Partners today.