{
  "id": "payroll-tax",
  "version": "1fb271829565",
  "status": "published",
  "name": "Payroll Tax Calculator",
  "question": "How much payroll tax is due?",
  "summary": "Computes the payroll tax on one paycheck: the employee’s Social Security and Medicare, and the employer’s matching share, federal unemployment tax (FUTA), and state unemployment tax.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/payroll-tax-calculator",
  "markdown": "https://www.acalculator.org/finance/payroll-tax-calculator.md",
  "kind": "function",
  "method": "Employee: Social Security = 6.2% × min(wages, max(0, $184,500 − wages so far)); Medicare = 1.45% × wages; Additional Medicare = 0.9% × min(wages, max(0, wages so far + wages − $200,000)). Employer: the same Social Security and Medicare (no Additional Medicare), FUTA = 0.6% × min(wages, max(0, $7,000 − wages so far)), state unemployment = rate × min(wages, max(0, state base − wages so far)).",
  "assumptions": [
    "An estimate, not tax advice. Rates are for 2026 (IRS Publication 15).",
    "FUTA uses the full 5.4% credit for state unemployment tax paid on time. Credit reduction states (announced each November) and state-run disability or family leave taxes are not modelled.",
    "Wages are subject to Social Security and Medicare: a traditional 401(k) does not reduce them; section 125 health and HSA deductions do.",
    "The employer does not match Additional Medicare Tax. The employee’s final Additional Medicare Tax depends on the filing status on the return (Form 8959)."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "wages": {
        "title": "Wages this paycheck",
        "description": "Gross pay subject to Social Security and Medicare: before a 401(k), after section 125 health and HSA deductions.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "ytd": {
        "title": "Wages paid so far this year",
        "description": "Wages this employer paid the employee earlier this year: for the Social Security wage base, the $200,000 Additional Medicare line, and the unemployment wage bases.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "futa": {
        "title": "Employer pays FUTA",
        "description": "The employer owes federal unemployment tax (most employers do; some nonprofits and governments do not).",
        "type": "boolean"
      },
      "sutaRate": {
        "title": "State unemployment tax rate",
        "description": "The employer’s state unemployment (SUTA) rate from its state notice.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "sutaBase": {
        "title": "State unemployment wage base",
        "description": "Wages per employee per year that the state unemployment tax applies to.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000
      },
      "date": {
        "title": "Pay date",
        "description": "The date of the paycheck: its year picks the rates and wage base.",
        "type": "string",
        "format": "date"
      }
    }
  },
  "outputs": {
    "total": {
      "label": "Total payroll tax",
      "description": "Employee and employer payroll taxes on this paycheck together.",
      "format": "money"
    },
    "employee": {
      "label": "Employee pays",
      "description": "Social Security, Medicare, and Additional Medicare withheld from the paycheck.",
      "format": "money"
    },
    "employer": {
      "label": "Employer pays",
      "description": "The employer’s Social Security and Medicare, FUTA, and state unemployment tax.",
      "format": "money"
    },
    "socialSecurity": {
      "label": "Social Security (each)",
      "description": "6.2% of wages up to the wage base, paid by the employee and again by the employer.",
      "format": "money"
    },
    "medicare": {
      "label": "Medicare (each)",
      "description": "1.45% of wages, paid by the employee and again by the employer.",
      "format": "money"
    },
    "additionalMedicare": {
      "label": "Additional Medicare (employee)",
      "description": "0.9% of the year’s wages over $200,000, withheld from the employee only.",
      "format": "money"
    },
    "futaTax": {
      "label": "FUTA (employer)",
      "description": "0.6% net of the first $7,000 of wages in the year.",
      "format": "money"
    },
    "sutaTax": {
      "label": "State unemployment (employer)",
      "description": "The state rate on wages up to the state wage base.",
      "format": "money"
    },
    "rates": {
      "label": "Tax year",
      "description": "The tax year of the rates used.",
      "format": "text"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "wages": 2500,
      "ytd": 0,
      "futa": true,
      "sutaRate": 0,
      "sutaBase": 7000,
      "date": "2026-09-30"
    },
    "outputs": {
      "total": 397.5,
      "employee": 191.25,
      "employer": 206.25,
      "socialSecurity": 155,
      "medicare": 36.25,
      "additionalMedicare": 0,
      "futaTax": 14.999999999999996,
      "sutaTax": 0,
      "rates": "2026 rates, Social Security wage base $184,500"
    },
    "text": "On $2,500.00 of wages, the payroll tax is $397.50: $191.25 from the employee and $206.25 from the employer."
  },
  "examples": [
    {
      "given": {
        "wages": 5000,
        "ytd": 0,
        "futa": true,
        "date": "2026-01-15"
      },
      "expect": {
        "socialSecurity": 310,
        "medicare": 72.5,
        "additionalMedicare": 0,
        "futaTax": 30,
        "employee": 382.5,
        "employer": 412.5,
        "total": 795
      },
      "source": "IRS Pub 15 (2026) sections 9 and 14; hand calculation in content.mdx"
    },
    {
      "given": {
        "wages": 5000,
        "ytd": 182000,
        "futa": true,
        "date": "2026-11-15"
      },
      "expect": {
        "socialSecurity": 155,
        "medicare": 72.5,
        "futaTax": 0,
        "total": 455
      },
      "source": "IRS Pub 15 (2026) sections 9 and 14; hand calculation in content.mdx: only $2,500 is left under the $184,500 wage base"
    },
    {
      "given": {
        "wages": 5000,
        "ytd": 198000,
        "futa": true,
        "sutaRate": 2.7,
        "sutaBase": 10000,
        "date": "2026-12-15"
      },
      "expect": {
        "socialSecurity": 0,
        "medicare": 72.5,
        "additionalMedicare": 27,
        "sutaTax": 0,
        "employee": 99.5,
        "total": 172
      },
      "source": "IRS Pub 15 (2026) sections 9 and 14; hand calculation in content.mdx: 0.9% on the $3,000 over $200,000"
    },
    {
      "given": {
        "wages": 4000,
        "ytd": 5000,
        "futa": true,
        "sutaRate": 3.4,
        "sutaBase": 9000,
        "date": "2026-03-15"
      },
      "expect": {
        "futaTax": 12,
        "sutaTax": 136,
        "employee": 306,
        "employer": 454,
        "total": 760
      },
      "source": "IRS Pub 15 (2026) sections 9 and 14; hand calculation in content.mdx: FUTA on the $2,000 left under $7,000; state tax on the $4,000 under a $9,000 base"
    }
  ],
  "sources": [
    "IRS, Publication 15 (2026), (Circular E), Employer’s Tax Guide: section 9 (Social Security 6.2% each up to $184,500, Medicare 1.45% each, Additional Medicare 0.9% withheld over $200,000) and section 14 (FUTA). https://www.irs.gov/pub/irs-pdf/p15.pdf",
    "IRS, Instructions for Form 940 (2025): FUTA 6.0% on the first $7,000, credit up to 5.4%. https://www.irs.gov/instructions/i940",
    "Social Security Administration, Contribution and Benefit Base ($184,500 for 2026). https://www.ssa.gov/oact/cola/cbb.html"
  ],
  "related": [
    "paycheck",
    "bonus-tax",
    "federal-withholding"
  ],
  "changelog": []
}