The amount of federal tax withheld from your paycheck depends primarily on your income level, filing status, and the information you provide on your Form W-4 to your employer.
Federal Income Tax Rates and Brackets for 2025
For the 2025 tax year, federal income tax rates are progressive and range from 10% to 37%, divided into seven brackets. The brackets vary by filing status (single, married filing jointly, head of household). For example, for single filers:
- 10% on income up to $11,925
- 12% on income between $11,925 and $48,475
- 22% on income between $48,475 and $103,350
- 24%, 32%, 35%, and 37% apply to higher income ranges accordingly
How Withholding Works
- Your employer withholds federal income tax from each paycheck based on your W-4 form, which includes your filing status and any adjustments or allowances you claim.
- The IRS provides tax tables (Publication 15-T) that employers use to calculate the exact withholding amount based on your wages and W-4 details.
- Social Security tax (6.2% on wages up to $176,100 in 2025) and Medicare tax (1.45% on all wages, plus an additional 0.9% Medicare surtax on high earners) are also withheld separately
Summary
- The federal income tax withheld from each paycheck is a portion of your estimated annual tax liability, spread out over the year.
- The exact amount depends on your income, filing status, and W-4 choices.
- The tax rates for 2025 remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%, with income thresholds adjusted for inflation
- To know your precise withholding amount, you can use IRS tax tables or online paycheck calculators that factor in your specific situation
In essence, federal tax withholding is a gradual collection of your estimated annual income tax through payroll deductions, calculated using IRS tables and your W-4 inputs.
