How federal income tax and FICA work in the US
You pay federal income tax in slices on income after the standard deduction, plus Social Security and Medicare from your pay.
US employees pay federal income tax, Social Security and Medicare through payroll withholding, and most also pay state income tax. Federal income tax is charged on taxable income, which is your income minus deductions. Most employees take the standard deduction.
2026 federal tax brackets (single)
| Taxable income | Rate |
|---|---|
| Up to $12,400 | 10% |
| $12,401 to $50,400 | 12% |
| $50,401 to $105,700 | 22% |
| $105,701 to $201,775 | 24% |
| $201,776 to $256,225 | 32% |
| $256,226 to $640,600 | 35% |
| Over $640,600 | 37% |
Social Security and Medicare
Social Security tax is 6.2% of wages up to $184,500 in 2026. Medicare tax is 1.45% of all wages, plus an extra 0.9% on wages over $200,000. Your employer pays a matching amount of Social Security and Medicare.
Worked example: $85,000 single filer
$85,000 − $16,100 standard deduction = $68,900.
10% of $12,400 is $1,240. 12% of $38,000 is $4,560. 22% of $18,500 is $4,070. The total is $9,870.
Social Security is $5,270 and Medicare is $1,232.50.
$85,000 − $9,870 − $5,270 − $1,232.50 = $68,627.50 a year, about $5,719 a month, before any state tax.
✨ Key Takeaways
- Federal tax is charged in slices after the standard deduction.
- Social Security and Medicare are separate payroll taxes.
- State income tax varies, so the calculator uses a rate you enter.
- Check the IRS for the current year's figures.