Irs tax calculator

Note: August 2019 – this Fact Sheet has been updated to reflect changes to the Withholding Tool.

FS-2019-4, March 2019

The federal income tax is a pay-as-you-go tax.

Taxpayers pay the tax as they earn or receive income during the year. Taxpayers can avoid a surprise at tax time by checking their withholding amount. The IRS urges everyone to do a Paycheck Checkup in 2019, even if they did one in 2018.

What percentage of my paycheck is withheld for federal tax

This includes anyone who receives a pension or annuity. Here’s what to know about withholding and why checking it is important.

Understand tax withholding

An employer generally withholds income tax from their employee’s paycheck and pays it to the IRS on their behalf.

Wages paid, along with any amounts withheld, are reflected on the Form W-2, Wage and Tax Statement, the employee receives at the end of the year.

How withholding is determined

The amount withheld depends on:

• The amount of income earned and
• Three types of information an employee gives to their employer on Form W–4, Employee's Withholding Allowance Certificate:
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