Is it common to have 30% of your paycheck witheld for taxes?

Question

I thought it was usually around 20%? Is there anything I can do to withhold less?

Answer 1

if your income is high enough, then your withholdings would be more. Either earn less money, or check with this website, www.paycheckcity.com to make sure that the proper amount is being withheld. Are you including in the 30% social security taxes, which would be 6.2% of your paycheck, and medicare taxes, which would be 1.45% of your paycheck, and possibly state income tax withholding, which I don't know, since I don't know what state you're in? The 20% would usually be just the federal withholding, but you may be including everything (including the kitchen sink) for the 30% number.

Answer 2

Witholding from paychecks can range from 15% to almost 40%, depending on income.

You can help reduce this amount to zero if you will write your congressman and demand that he support the FAIR TAX--a National Comsumption tax instead of a tax on labor. You would recieve your check without any federal withholding. Tax revenue would be collected at the point of sale when you purchase new goods or services. There would be no tax up to the poverty level for anyone. Get "The Fair Tax" book and read it. There is a tax reform bill in congress, HR-25, that would replace the present tax system and do away with the IRS. You would never have to file a tax return again. The Fair Tax is revenue neutral meaning it would supply the government with the same amount of revenue that our present system does but spread it over a broader base. The underworld, prostitutes, druggers would now pay taxes! We would do away with spending over 250 BILLION DOLLARS each year just preparing tax returns. Everyone would pay only 23% on purchase of new goods and service once they had exceeded the poverty level. Used items would not be taxed a second time which would include homes and automobiles.

Answer 3

Your employer will withhold 7.65% for social security/medicare. If you live in a state that has a state income tax, that will also be withheld. The federal income tax withheld is based on your income and the number of withholding allowances you claimed on your W4 form. For example, if you are paid biweekly and you claimed one withholding allowance and you are single, the amount withheld for various incomes would be-
$520 gross: $39.76 FICA + $28.70 FWT = $68.46 (13.2%)
$1420 gross: $108.61 FICA + $163.70 FWT = $272.31 (19.2%)
$3095 gross: $236.75 FICA + $ 582.45 FWT = $819.20 (26.5%)
$6393 gross: $489.05 FICA +$1505.89 FWT = $1994.94 (31.21%)

[FICA is Social Security/Medicare; FWT is Federal Withholding Tax.]

If your employer offers a 401k plan, investing part of you pay in the 401k will reduce your taxable income. Increasing your withholding allowances (on the W4 form) will result in less tax being withheld. (However, it will not change the total tax that is owed when you file your tax return.)

Answer 4

You can ask your human resources department to withhold less, but be careful because if they don't withhold enough you'll owe the IRS a bunch of money come April.

Answer 5

depends on your income. If you are in the 25% tax bracket, you wouldn't want only 20% withheld.

Is that 30% federal plus state plus SS & MC or is that 30% for everything?

Answer 6

Its not unusual, but you need to check your deductions. are they deducting 401k? Health Insurance? That figures in. If they are taking 30% before health and 401k, i'm saying that's kinda hefty. A good Accountant can tell you if you are getting too much taken out.

Answer 7

It depends on how much you earn, what you put on your W-4, and where you live. You'll pay 7.65% for social security and medicare, then also possibly federal, state and local income taxes.

Answer 8

It depends how much you earn.

You may need to change your W-4.

Your employer may be running your payroll wrong like paying you bi-weekly while imputing weekly on your payperiod. Check your paycheck advice.


See IRS.gov