What Percentage of Taxes Are Taken Out Of Your Paycheck in 2025?

For most people in 2025, around 29–33% of taxes are taken out of their paycheck. The exact percentage will depend largely on the state in which you work and reside. Different states have different tax percentages, which means your tax burden could be higher or lower depending on where you live. Continue reading to learn more about how taxes are determined before they are taken out of your paycheck.

How Much Income Tax Is Taken From Your Paycheck?

The typical amount you’ll pay in income tax will look like this:

• Federal Taxes: The average range is between 10% and 37%.
  
• FICA Taxes (Social Security and Medicare Taxes): Likely around 7.65%.
  
• State/Local Taxes: Range between 0% and 13%.
  

The exact amount of income tax that is taken out of your paycheck depends on a few factors, including:

• Your income
  
• Filing status
  
• Current tax brackets and rates
  
• Tax credits (you account for these in your W-4)
  
• The type of income you have
  
• Your state and local taxes

ADP has an easy-to-use paycheck calculator if you want a rough estimate of what your paycheck might look like after taxes.

Example of Income Tax per Paycheck

Let’s look at a simplified example showing how taxes are calculated at each level: federal, FICA, and state.

Alex and Jordan are married, have one child, and earn a combined $80,000 per year. They file Married Filing Jointly and live in a state with a 5% income tax.

• Federal income tax: After the $29,200 standard deduction and the $2,000 Child Tax Credit, their estimated federal tax bill is about $3,500 per year.
  
• FICA taxes: At 7.65% of gross income, they pay about $6,120 per year.
  
• State income tax: At 5%, they owe about $4,000 per year.
  

Total annual taxes: ~$13,620.

If they’re paid biweekly (26 paychecks per year), that means:

• Gross pay per paycheck: ~$3,077
  
• Taxes withheld per paycheck: ~$524
  
• Take-home pay per paycheck: ~$2,553

Even though the top federal tax rate is 37%, most families pay much less due to lower tax brackets, the standard deduction, and tax credits, which is why households with the same income can have very different take-home pay.

Gross vs. Net Pay by State 

The table below shows how the same $80,000 household income can result in different take-home pay depending on state income taxes. This example assumes Married Filing Jointly, one child, and average federal and FICA taxes.

State	Key Taxes Withheld	Estimated Net Income
Texas	Federal: ~$3,500FICA: $6,120State: $0	$70,380
Florida	Federal: ~$3,500FICA: $6,120State: $0	$70,380
Illinois	Federal: ~$3,500FICA: $6,120State: ~$3,960 (4.95%)	$66,420
Pennsylvania	Federal: ~$3,500FICA: $6,120State: ~$2,460 (3.07%)	$67,920
New York	Federal: ~$3,500FICA: $6,120State: ~$5,200 (~6.5%)	$65,180
California	Federal: ~$3,500FICA: $6,120State: ~$6,400 (~8%)	$63,980

*Federal taxes reflect the standard deduction and the Child Tax Credit and will vary based on W-4 selections and other credits.

What Are Federal, State, and Local Taxes?

Federal taxes are collected by the IRS to support nationwide government programs. State taxes are collected by state agencies to support programs within the state. For example, in Illinois, taxes are collected by the Illinois Department of Revenue, while in California, the Franchise Tax Board handles state income taxes. Lastly, local (also called municipal) taxes are imposed by cities, counties, school districts, or other local governments to pay for services and projects within the community.

Wondering what your specific taxes look like depending on where you live? Check out this tax withholding estimator from the IRS.

Below, we’ll go into more specifics about these different taxes.

Municipal Taxes

Local or municipal taxes can vary widely depending on where you live. These taxes may include local income taxes, property taxes, or special district taxes and are used to fund services such as public schools, road maintenance, emergency services, and local infrastructure.

Not all cities or counties charge local income taxes, but in areas that do, they can increase the total amount withheld from your paycheck. If applicable, these taxes will show up under a section called city taxes or something similar.

State Taxes

State taxes help fund specific state programs. State income tax, sales tax, and property taxes are the bulk of what state taxes are comprised of.

The main difference between state and local taxes is who collects them and how the funds are used. State taxes are collected by the state government and support programs across the entire state, while local taxes are collected by cities or counties to fund community-specific services like schools, police, and road maintenance.

State tax agencies administer and enforce these taxes. Examples include the California Franchise Tax Board (FTB) and the New York State Department of Taxation and Finance.

Federal Income Tax

Federal income taxes are collected by the IRS from individuals and corporations; they help fund national programs and public services. They work on a progressive scale, meaning the more that an individual or corporation makes, the more they will pay in federal income taxes.

If you are an employee working for an employer, then you’ll also be paying Federal Payroll Taxes. With Federal Payroll Taxes, the process of collection is done through Federal Income Tax Withholding, which is where your employer automatically takes out funds from your paycheck and sends them directly to the IRS.

Continue reading to learn more about these taxes, how they work, and what makes them different from standard federal income taxes, other than how they are taken out.

What Are Federal Payroll Taxes (FICA)?

Federal Payroll Taxes are directly taken out of paychecks to pay for Social Security and Medicare.

These taxes are typically split between employees and employers and are calculated as a flat percentage of wages (up to certain limits), rather than using income tax brackets. 

If you make more than $200,000, then there will be a 0.9% surcharge added to your Federal payroll tax for Medicare. For Social Security, wages are taxed only up to the 2025 wage base of $176,100.

What Is Federal Tax Withholding?

Federal tax withholding is when an employer takes a portion of their employee’s income automatically from each paycheck and pays the IRS.

Your W-4, which is a tax form that you will fill out with the correct information regarding things like dependents, how many jobs you have, etc., helps an employer determine how much federal tax they need to withhold from each paycheck.

Allowances used to be used with W-4s in the past, which could impact your withholding amount; however, those have not been a part of these forms since 2020. Filing status can also have a large impact on your tax withholding.

Employers calculate withholding using IRS-approved methods outlined in Publication 15-T, primarily the wage bracket method and the percentage method. The wage bracket method uses IRS tables to determine withholding based on income ranges, while the percentage method applies tax rates to portions of income that fall within specific brackets.

It’s also important to understand the difference between marginal and effective tax rates. Your marginal tax rate is the rate applied to your last dollar of income, while your effective tax rate is the average rate you pay across all of your taxable income. Federal tax withholding is designed to approximate your effective tax liability over the year.

How to Adjust Income Tax Withholding

To adjust your income tax withholding, you will need to edit your W-4. Here you’ll have a few sections you can edit to adjust your tax withholding:

• Your Filing Status — Your status will be either Single, Married filing jointly, Married filing separately, Head of household, or Qualifying widow(er) with dependent child. If your situation changes or you want a different tax approach (common with married couples), you can adjust your filing status, which can directly impact your tax liability.
• Dependents — Adding more dependents can decrease your tax liability, while reducing them can increase how much you owe.
• Extra Withholding — You can choose to put aside any extra amount that you want your employer to withhold from your paychecks. If you find yourself owing a lot during tax season, this can be an easy way to combat that until you figure things out with a tax expert.

You’ll want to update your W-4 anytime you go through major life or financial changes. For example, if you get married, divorced, get another job, or have a child.

Not sure where to start? Use the IRS’s Withholding Estimator to figure out how much income tax withholding makes sense.

What Are Pre-Tax & Post-Tax Deductions?

Pre-tax deductions are taken out of your gross pay before taxes, while post-tax deductions are taken out after.

Pre-tax deductions include things like a 401(k), an HSA, or an FSA. Post-tax deductions can include Roth IRA contributions, health insurance, and garnishments like child support or alimony.

While there isn’t much you can do for the amount you are taxed related to your take-home pay, you can definitely adjust pre-tax and post-tax adjustments in some cases. The more you contribute toward retirement or health insurance, the less take-home pay you will have, and vice versa.

Common Mistakes and Things to Look Out For

Some common mistakes and things to look out for when figuring out withholding with taxes are:

• Using an outdated W-4.
  
• Not accounting for side or freelance income.
  
• Forgetting about deductions or tax credits.
  
• Not adjusting withholding for multiple jobs, which can mean changing federal income tax brackets.
  

These mistakes can mean not paying enough from each paycheck and owing a lot at the end of tax season. On the other end of the spectrum, you could be losing day-to-day funds if you are having too much money withheld.

FAQ

How much tax is taken out of a $3,000 paycheck in 2025?

On a $3,000 paycheck, you might see roughly 10–15% withheld for federal income tax, 7.65% for FICA, and 3–6% for state taxes, depending on your state. The exact amount can vary significantly based on your W-4 elections, filing status, deductions, and credits.

What is the FICA rate in 2025?

In 2025, the FICA rate includes 6.2% for Social Security on wages up to $176,100 and 1.45% for Medicare, with an additional 0.9% Medicare surtax for high earners.

How can I reduce the taxes withheld from my paycheck?

You can adjust your W-4, increase pre-tax contributions like a 401(k) or HSA, or use the IRS withholding estimator to fine-tune your withholding.

Why does my state tax withholding vary from my neighbor’s?

State withholding can differ due to state and local tax rates, filing status, income levels, and personal exemptions or credits.

Do bonuses get taxed differently compared to regular wages?

Yes, bonuses are often taxed using a flat supplemental rate or the aggregate method, though FICA and state taxes still apply.

What happens if I under-withhold taxes?

You may owe a balance at filing time and could be subject to penalties; estimated payments or W-4 adjustments can help.

Are paycheck deductions different from taxable income deductions?

Yes, pre-tax deductions reduce taxable income; post-tax deductions do not.

Sources 

1. State Individual Income Tax Rates and Brackets, 2025 | Tax Foundation
2. About Form W-4, Employee’s Withholding Certificate | Internal Revenue Service
3. About Publication 15-T, Federal Income Tax Withholding Methods | Internal Revenue Service
4. Withholding Tax: What It Is, Types, and How It’s Calculated | Investopedia