What percentage of gross income goes to paying taxes?

Question

I'm trying to figure out how much I'll need to net per hour, but can't figure it out because the FDIC, social security, etc. is just totally confusing for me.

Like, I'm adding up all my bills and financial responsibilities, and looking for a job. I have no idea how to know the gross hourly wage I'll need to have to bring home enough to pay for all my responsibilities.

Help!

Steven, thanks. I know I need to be doing that, but the thing is, I have some obligations I HAVE to meet, so I need to know a bare minimum I need to try to get to make sure I can meet those obligations.

Answer 1

Your taxes throughout the year that will affect your Bi-Weekly pay (or overall monthly pay) is based on your number of exemptions you file on your W-4, Tax Withholding form. You can safely figure about 3% per exemption. The less exemptions you take, the more taxes you pay per paycheck. However, the better chance of getting a nice return at tax time. The more exemptions you claim, the less they take from each paycheck. But be warned, if you pay to little taxes throughout the year, you'll probably ending up owing come tax time.
Social Security (FICA) is basically set at 7.65% of your pay if you work for someone else. If your self employed, its 15.30% known as (SECA).
Sounds confusing, but wou'll get the hang of it. Good luck.

Answer 2

FDIC is the Federal Deposit Insurance Corporation. It insures bank deposits, and have NOTHING to do with your check. FICA aka Social Security consists of Social Security Retirement and Medicare taxes. The 2 combined come to 7.65% of your gross income. Federal income tax rates are as low as NOTHING to as high as 34%. if you have to ask, you are probably in the 10% bracket or below. Your STATE may have its own income tax. you are doing the math backwards. Find a job, and them determine what you can afford on your income.

Answer 3

Here is a simple lesson:

Use
8% for social security and other
15% for federal
5% for state
2% for local and misc.

These numbers maybe a bit high for you, but they will get you close enough...this gives you 30% for all taxes.

If your total monthly bills and expenses are $1200 each month, then divide that number by one minus the tax rate (1.00-0.30 = 0.70).

$1200/0.70 = $1715. This is what you need for your gross monthly paycheck to pay your bills and taxes. Divide this amount by 4 (estimate of weeks in a month).

1715/4 = $426. This is what you need to earn gross weekly. Divide this amount by the number of (regular) hours you want to work each week.

$426/35= $12.18. This is how much you need to earn per hour working 35 hours a week to get to the gross weekly pay you want.

Answer 4

Should be about 15% but for myself, I just figure $1 per hour under $10/hour just to be safe and maybe have some extra.

Answer 5

Count on 15 to 20% coming out of your check for taxes and such.

Answer 6

It depends what tax bracket you're in. Usually around 15-20%.