Your contribution to Social Security and Medicare: 15.3% of your salary, up to a limit, half of which is paid by your employer.
A huge number of people pay far more in payroll taxes than they do in income taxes. On the other hand, the payroll tax isn’t a true “tax” in the sense that it isn’t supposed to be a source of revenue for the government – it’s supposed to be a contribution to an account that you’ll be entitled to withdraw benefits from at a later date. For that reason payroll taxes generally aren’t included in discussions about tax cuts: the only way you can get a cut in your contributions is to (a) accept a corresponding cut in benefits, or (b) have your benefits subsidized by somebody else, or (c) reform the entire system.
Click below to estimate your taxes and retirement funds. After you’re done please call 1.800.789.1040 and we can set up an appointment to come in and talk to Mr Tax – Your tax expert.
1040 Tax Estimator
Tax Brackets Estimator
401(k) Retirement and tax Estimator
Simple Roth IRA Retirement Estimator
Capital Gains Tax Estimator