How to calculate sales tax

Easy step-by-step instructions to manually calculate your paycheck's federal income tax, Social Security tax, and Medicare tax with examples.

There are 3 federal taxes that U.S.

employees pay with every paycheck:

• Federal Income Tax (FIT)
• Social Security
• Medicare

Employers must withhold these payments from each W-4 employee's paycheck. These taxes pay for federal expenses like the military, infrastructure, education, health and social programs, and more.

Below are the steps to calculate your federal taxes by hand followed by examples — or you can simply use the free PaycheckCity calculators to do the math for you.

Steps to Calculate Federal Income Tax

Before you begin, you will need: your paycheck, W-4 form, and a calculator.

1. Find the paycheck's gross pay (earnings before taxes).
2. Determine the number of payroll periods in a year:
   If the pay frequency is once per quarter: Quarterly = 4
   If the pay frequency is once a month: Monthly= 12
   If the pay frequency is twice p
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