Free Payroll Tax Calculator - Estimate Employee Withholdings and Deductions

This free payroll tax calculator estimates the federal and state tax deductions you need to withhold from an employee's paycheck — and what you owe as the employer. Enter gross wages, pay frequency, and W-4 information to get an itemized breakdown of withholdings and employer contributions. Most first-time employers find the employer-side costs — FICA matching and FUTA — are the numbers that catch them off guard.

Enter the employee's gross wages for the pay period and select how often you pay them. Add their filing status and any W-4 adjustments. If the employee has pretax deductions — things like health insurance premiums or 401(k) contributions — enter those too, since they reduce the taxable wage base for federal income tax and FICA purposes.

The calculator uses IRS Publication 15-T withholding tables for federal income tax and applies the current FICA rates: 6.2% for Social Security (up to the $176,100 wage base for 2026) and 1.45% for Medicare on all wages. FUTA is calculated at the effective 0.6% rate on the first $7,000 of each employee's wages for the year, assuming your state unemployment taxes are paid on time and in full.

The output gives you 2 numbers to act on: what to withhold from the employee's paycheck, and what you owe as the employer. The employee-side amounts — federal income tax, Social Security, and Medicare — get deposited to the IRS on a schedule based on your total tax liability. The employer-side amounts — your FICA match and FUTA — are your direct cost on top of gross wages.

Use the results to set your payroll deposit schedule, reconcile against Form 941 (your quarterly federal tax return), and plan cash flow for each pay period. If an employee's wages cross $200,000 in a calendar year, you'll need to withhold the additional 0.9% Medicare tax on the excess — the calculator flags this automatically.

For state income tax withholding, check your state's tax agency for current rates and tables. State requirements vary and the calculator provides an estimate based on available rate data. A tax professional can help you figure out state-specific deposit schedules and any local tax obligations that apply to your business.