If you’re looking at your paycheck and wondering how much federal tax is being taken out in 2025, the answer depends on your income, filing status, pay frequency, and the information you provided on your W-4. There isn’t one flat percentage for everyone—federal tax withholding is based on IRS tax brackets and your personal situation.
2025 Federal Income Tax Brackets
The IRS uses a progressive tax system, which means different parts of your income are taxed at different rates.
Single Filers (2025)
- 10%: $0 – $11,925
- 12%: $11,926 – $48,475
- 22%: $48,476 – $103,350
- 24%: $103,351 – $197,300
- 32%: $197,301 – $250,525
- 35%: $250,526 – $626,350
- 37%: $626,351 and above
(Married filing jointly, head of household, and other statuses have their own brackets.)
👉 Want a quick calculation? Try the federal tax updates 2025 paycheck calculator
How Federal Tax Is Calculated on Your Paycheck
When your employer runs payroll, they use IRS Publication 15-T guidelines to figure out withholding. Here’s the process simplified:
- Start with gross pay – total earnings before deductions.
- Subtract pre-tax benefits (like health insurance or retirement contributions).
- Determine taxable wages for the pay period.
- Apply tax brackets to annualized wages, then scale back to per-paycheck.
- Adjust for W-4 choices (dependents, credits, extra withholding).
- Withhold the federal income tax amount shown in IRS tables.
Example: $4,000 Monthly Gross Pay (Single, No Dependents)
- Gross pay: $4,000
- Pre-tax deductions: $0 (for simplicity)
- Taxable wages: $4,000 × 12 months = $48,000/year
- Based on the 12% bracket, plus part of the 22% bracket → Approx. $390 in federal tax withheld monthly
(Numbers are estimates. Actual withholding depends on your W-4 and IRS calculations.)
Factors That Affect Your Federal Tax Withholding
- Filing status – single, married, or head of household.
- W-4 adjustments – dependents, multiple jobs, extra withholding.
- Pre-tax deductions – 401(k) contributions and health premiums reduce taxable wages.
- Bonuses or overtime – taxed as supplemental wages, sometimes at a flat rate.
Federal Tax vs. Other Deductions
Remember, federal income tax is only one piece of your paycheck. You’ll also see:
- FICA taxes – 6.2% Social Security and 1.45% Medicare.
- State and local taxes – if applicable.
- Pre-tax benefits – health insurance, HSAs, FSAs, and retirement savings.
FAQs: Federal Tax on Paychecks in 2025
- What percent of my paycheck goes to federal tax?
It varies. Many people see 10–22% withheld depending on income and filing status. - Are bonuses taxed differently?
Yes, supplemental wages may be withheld at a flat 22% federal rate. - Do 401(k) contributions lower my federal tax?
Yes, traditional 401(k) contributions reduce taxable income, which lowers withholding. - Where can I estimate my withholding?
Use the IRS Tax Withholding Estimator. - Will my withholding change mid-year?
Yes, if you update your W-4 or cross into a higher bracket due to raises or bonuses.
e a short meta description + intro snippet (under 160 characters) for this blog?
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.