Tax Withholding Calculator
Estimate your paycheck withholding and see if you need to adjust your W-4. Compare different withholding levels to avoid a surprise tax bill or an oversized refund.
Frequently Asked Questions
How does tax withholding work?
Your employer withholds federal income tax from each paycheck based on your W-4 form. The goal is to withhold approximately the right amount so you neither owe a large balance nor get a large refund at tax time.
How do I adjust my withholding?
Submit a new Form W-4 to your employer. On the current W-4, you can add extra withholding per paycheck in Step 4(c), claim dependents in Step 3 to reduce withholding, or add other income in Step 4(a) to increase it.
Should I aim for a refund or break even?
Financial advisors generally recommend breaking even. A large refund means you gave the government an interest-free loan all year. Under-withholding can result in penalties if you owe more than $1,000. Aim for owing less than $1,000 or getting a small refund.