If you live or work in [City Name], your paycheck often looks smaller than your actual salary. That’s because several layers of deductions—federal taxes, Social Security, Medicare, state income tax, and sometimes city-specific taxes—are taken out before your earnings reach your account. Add in retirement contributions and health benefits, and your net pay can shrink even more.
In this guide, we’ll walk step by step through how to calculate paycheck deductions in [City Name], explain the most common withholdings, and show an example so you can better understand your true take-home pay.
Quick Answer
Your paycheck in [City Name] is reduced by several types of deductions:
- Federal income tax based on IRS tax brackets and your W-4.
- FICA taxes – Social Security (6.2%) and Medicare (1.45%).
- State income tax (flat or progressive depending on your state).
- Local city taxes (if [City Name] requires them).
- Pre-tax benefits like 401(k), health insurance, and HSAs.
- Post-tax deductions like Roth contributions, union dues, or garnishments.
Step 1: Start With Gross Pay
Begin with your gross earnings (salary or hourly wage × hours worked).
Example: $25/hour × 40 hours = $1,000 gross weekly pay.
Step 2: Subtract Federal Withholding
The IRS determines how much is withheld based on:
- Income level
- Filing status (single, married, head of household)
- W-4 elections (dependents, extra withholding requests)
Step 3: Apply FICA Taxes
These are standard across all U.S. cities:
- Social Security: 6.2% (up to $176,100 in 2025).
- Medicare: 1.45% of all wages (+0.9% if income exceeds $200K single / $250K married).
Step 4: Account for State Income Tax
Each state sets its own system:
- Some states charge a flat rate (e.g., 4.25% in Michigan).
- Others have progressive brackets (e.g., California, New York).
- A few states (e.g., Texas, Florida) have no state income tax.
👉 You can check your numbers using the state paycheck calculator.
Step 5: Add [City Name] Local Taxes
If you live or work in a city like New York City, Philadelphia, or Detroit, you’ll see additional local wage taxes.
Check with your city’s Department of Revenue for the exact rates.
👉 For local estimates, try the after-tax paycheck calculator.
Step 6: Subtract Pre-Tax Deductions
These reduce taxable income before taxes are applied:
- Retirement plans (401k, 403b)
- Health, dental, or vision insurance
- Health Savings Account (HSA) or Flexible Spending Account (FSA)
Step 7: Subtract Post-Tax Deductions
Applied after taxes are withheld:
- Roth IRA or Roth 401(k) contributions
- Union dues
- Wage garnishments
Example: $1,000 Weekly Paycheck in [City Name]
| Item | Amount |
|---|---|
| Gross Pay | $1,000 |
| Federal Income Tax | –$120 |
| Social Security (6.2%) | –$62 |
| Medicare (1.45%) | –$15 |
| State Tax | –$45 |
| City Tax | –$30 |
| Health Insurance (pre-tax) | –$50 |
| Net Pay | $678 |
(Example only. Your actual paycheck depends on W-4 elections, benefits, and city tax rules.)
FAQs: Paycheck Deductions in [City Name]
- What taxes are taken from paychecks in [City Name]?
- Does [City Name] have a local income or wage tax?
- How much is deducted for Social Security and Medicare?
- Can pre-tax contributions lower my paycheck taxes?
- Do non-residents working in [City Name] pay city taxes?
- How can I calculate my net pay more accurately?
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.