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How to Calculate Federal Withholding Tax Using the Percentage Tables

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Several factors impact the calculation of your federal Income taxes.  Such items as marital status, number of withholding allowances (exemptions) and amount of semi-monthly gross earnings as well as reductions such as Public Employees Retirement Systems (PERS) or TIAA/CREF retirement contributions combine to determine the amount of federal income tax.  The following steps describe how to calculate your Federal income taxes:

 

STEP 1:

Determine the value of your total withholding allowances (exemptions) as claimed on your currentW-4 Form by multi­plying each allowance (exemption) by the semi-monthly amount of $164.60.

STEP 2:

Subtract the amount of any salary reductions, such as PERS,TIAA/CREF, or health insurance premium from your total semi-monthly gross earnings.

STEP 3:

Subtract STEP 1 from STEP 2 to determine your taxable gross wages.

STEP 4:

Use the tables below to calculate the amount of Federal income taxes.  Be sure to use the appropriate table based upon your marital status (single or married) as marked on your currentW-4 Form.

SEMI-MONTHLY PAYCYCLE

SINGLE person – including head of household:

If the amount of wages is:          The amount of income tax to withhold is:

Not over $94 . . . . . . . . . . 0

Over But not over of excess over
$  94 $ 472. . . . 10% $ 94
$ 472 $ 1,631. . . .$     37.80 plus 15% $ 472
$ 1,631 $ 3,817. . . .$    211.65 plus 25% $ 1,631
$ 3,817 $ 7,858. . . .$    758.15 plus 28% $ 3,817
$ 7,858 $16,973. . . $ 1,889.63 plus 33% $ 7,858
$ 16,973 $17,042. . . $ 4,897.58 plus 35% $16,973
$ 17,042 . . . . . . . . . . . . . . . . . . . . $4,921.73 plus 39.6% $17,042

MARRIED person

If the amount of wages is:                The amount of income tax to withhold is:

Not over $352 . . . . . . . . . . 0

Over But not over of excess over
$ 352 $ 1,108. . . . 10% $ 352
$ 1,108 $ 3,427. . . .$    75.60 plus 15% $ 1,108
$ 3,427 $ 6,554. . . .$   423.45 plus 25% $ 3,427
$ 6,554 $ 9,804. . . .$ 1,205.20 plus 28% $ 6,554
$ 9,804 $ 17,231. . . $ 2,115.20 plus 33% $ 9,804
$ 17,231 $ 19,419. . . $ 4,566.11 plus 35% $ 17,231
$ 19,419 . . . . . . . . . . . . . . . . . . . . $ 5,331.91 plus 39.6% $ 19,419
EXAMPLE: Monthly Salary: $4,200
Semi-monthly Salary: $2,100
Marital Status: Married
Withholding Allowances (Exemptions): 3
SRA (Reduction): $100
PERS II (Reduction): 4.92%
Health Insurance Premium $ 39.50

STEP 1: $164.60
x         3
$ 493.80 Value of withholding allowances
STEP 2: $ 2,100.00 Semi-monthly earnings
-   100.00 Less SRA
-   103.32 Less PERS II $2,100 X .0492
- 39.50 Less Health Insurance Premium
$ 1,857.18
STEP 3: $ 1,857.18 STEP 2
-    493.80 Less STEP 1
$ 1,363.38 Taxable Gross Wages
STEP 4: $ 1,363.38
-  1,108.00
$255.38 x 15% = $38.31 + $75.60 = $113.91 Federal Income Tax

“Reductions” are amounts which are not subject to federal income tax such as the Public Employees Retirement System (PERS), Health Insurance Premium, Teachers Retirement System, TIAA/CREF, Supplemental Retirement Annuity (SRA), State Deferred Compensations or Lincoln National. The following rates apply:

REDUCTION

RATE

PERS I

6.00%

PERS II

4.92%

PERS III

5-15%

TRS I

6.00%

TRS II

4.96%

TRS III

5-15%

TIAA/CREF

5.00%, 7.50% or 10.00%

LEOFF II

8.41%

You should review your W-4 Withholding Certificate yearly to ensure that the proper amount of withholding is being deducted. You can change the amount of withholding by completing and submitting a new W-4 Withholding Certificate to Payroll Services. Your tax status (married or single) and the number of withholding allowances (exemptions) appear on your pay stub/earnings statement each pay period.

 

 IRS Withholding Calculator

If you are an employee, the Withholding Calculator can help you determine whether you need to give your employer a new  Form W-4Employee’s Withholding Allowance Certificate to avoid having too much or too little Federal income tax withheld from your pay. You can use your results from the calculator to help fill out the form.

Who Can Benefit From The Withholding Calculator?

  • Employees who would like to change their withholding to reduce their tax refund or their balance due;
  • Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
  • Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.

CAUTION:    If you will be subject to alternative minimum tax, self-employment tax, or other taxes; you will probably achieve more accurate withholding by following the instructions in Pub 505: Tax Withholding and Estimated Tax.

Ready to start? Make sure scripting is enabled before using this application. Continue to the Withholding Calculator

Tips For Using This Program

  • Have your most recent pay stubs handy.
  • Have your most recent income tax return handy.
  • Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.

To Change Your Withholding:

  1. Use your results from this calculator to help you complete a new Form W-4Employee’s Withholding Allowance Certificate.
  2. Submit the completed Form to your employer.