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 1.2% 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.

It is an extra Medicare surtax on combined wages and self-employment income above $200,000 for single filers or $250,000 for married filing jointly. Unlike regular FICA, the employer does not match this 0.9% - it only withholds the amount from the employee. The final liability is reconciled on Form 8959 at year-end regardless of how much was withheld.

The state unemployment tax (SUTA) rate depends on the state and on the employer's experience rating, and it can range from roughly 0.5% to over 6%. This calculator uses 2.7% on the first $15,000 of wages as a placeholder estimate, so check your state's exact rate and wage base for an accurate figure.

California SDI (State Disability Insurance) is a 1.2% tax withheld from the employee on all wage income. It funds short-term disability benefits and part of the state's paid family leave program. Several other states, including New York and New Jersey, run similar programs.

The employer's total cost is gross wages plus its share of FICA (6.2% Social Security + 1.45% Medicare), FUTA on the first $7,000 at 0.6%, and estimated state SUTA. For an $80,000 salary, these added charges usually come to about $6,500 more (roughly $6,120 of matching FICA plus FUTA and SUTA).