Payroll & wages

Payroll tax calculator

Use this free payroll tax calculator (and employer payroll tax calculator) to estimate employer payroll taxes and employee withholdings for one W-2 employee per pay period. See FICA match, FUTA, optional SUTA, federal and state income tax, and total payroll cost — one screen on mobile or desktop, without a seven-step payroll signup.

How to calculate payroll taxes (4 steps)

  1. Enter gross pay

    Salary per period or hourly rate × hours (plus optional overtime).

  2. Choose state and pay frequency

    State drives income tax withholding; frequency annualizes FICA and FUTA wage bases.

  3. Add employer assumptions

    Enter your SUTA rate % and confirm FUTA credit eligibility (default 0.6% effective FUTA).

  4. Read employer + employee breakdown

    Total payroll cost = gross wages + employer taxes. Export CSV or PDF for planning.

What is payroll tax?

2026 payroll tax rates (reference)

TaxEmployeeEmployer
Social Security (2026)6.2% on wages up to $184,5006.2% match (same wage base)
Medicare1.45% (+0.9% high earners)1.45% match
FUTA0.6% typical (after credit) on first $7k
SUTARare (AK, NJ, PA)Your state rate %

Employer vs employee payroll tax responsibilities

California payroll taxes (example)

Payroll tax calculator vs paycheck calculator

Worked example: $800 biweekly in Texas

Accurate hours, cleaner payroll runs

Limitations

Discover more calculators for time tracking, payroll, and HR.

Frequently asked questions about Payroll & wages

How to calculate payroll tax?

Start with gross wages for the pay period. Calculate employee withholdings (federal and state income tax, FICA) and employer taxes (matching FICA, FUTA on the first $7,000 of wages per employee per year, and SUTA at your rate). Add employer taxes to gross for total payroll cost. This tool runs those steps automatically when you enter pay, state, and SUTA %.

What percentage of your paycheck goes to payroll taxes?

On wages below the 2026 Social Security cap, FICA alone is 7.65% from the employee and 7.65% from the employer (15.3% combined). Income tax withholding varies by W-4 and state. The results show employee tax rate, employer tax rate, and combined payroll tax rate for your scenario.

What are the payroll tax rates for 2026?

2026 Social Security is 6.2% each for employee and employer on wages up to $184,500. Medicare is 1.45% each (plus 0.9% additional Medicare on high earners for employees). Employer FUTA is typically 0.6% after the state credit on the first $7,000 per employee. SUTA is state-specific — enter your rate in the calculator.

How much tax is taken out of a payroll check?

Employee checks typically include federal income tax, state income tax (if applicable), Social Security, and Medicare. See the employee withholdings breakdown in the results — or use the paycheck calculator for pay-stub style detail.

How to calculate how much tax is deducted from a paycheck?

Withholding depends on gross pay, pay frequency, W-4 elections, and state rules. Expand Withholding (W-4) in the calculator or open the dedicated paycheck calculator for net pay and PDF export.

How are payroll taxes calculated for employers?

Employers pay matching FICA, FUTA (typically 0.6% after state credit on the first $7k wages), and SUTA at your experience-rated percentage. Enter your SUTA rate to include it in total payroll cost.

What is the formula for calculating payroll taxes?

Total payroll cost ≈ gross wages + employer FICA + FUTA + SUTA. Employee net pay = gross − withholdings − deductions. This page computes both sides so you can budget cash for each pay run.

How much do employers have to pay for payroll taxes?

Below the Social Security wage base, employer FICA alone is about 7.65% of gross. Add FUTA (small per employee per year) and SUTA. The total payroll cost card adds gross plus employer taxes for the period.

What is the difference between payroll tax and income tax?

Payroll taxes fund Social Security, Medicare, and unemployment programs and include employer shares. Income tax funds general government spending and is mostly withheld from employees based on W-4 and brackets.

Who pays FUTA vs SUTA?

FUTA is a federal employer unemployment tax (first $7,000 per employee). SUTA is state unemployment insurance — usually employer-paid; Alaska, New Jersey, and Pennsylvania also have employee SUTA in some cases.

Does this replace Form 941 or my payroll provider?

No. This is a free estimator for budgeting. Deposits, filings, and exact state/local rules belong in your payroll system or advisor workflow.

Should employees use this calculator or the paycheck calculator?

Employees should use the paycheck calculator for take-home pay. This page is optimized for employers who need employer taxes and total payroll cost on the same screen.

What is total payroll cost vs gross wages?

Gross wages are what you pay the employee before their withholdings. Total payroll cost here means gross plus employer payroll taxes (FICA match, FUTA, SUTA) — the employer's cash burden for the pay run excluding employee net pay.

Does this work for 1099 contractors?

No. This calculator is for W-2 employees. Contractors generally handle self-employment tax themselves; you typically do not withhold payroll taxes on 1099 payments.

Is this a free payroll tax calculator for employers?

Yes. Estimate employer and employee payroll taxes per pay period at no cost — export CSV or PDF for planning. You do not need an account. For pay-stub style net pay only, the paycheck calculator is the better fit.

How do California payroll taxes work in this calculator?

Choose California as the state to include CA income tax withholding plus employer FICA, FUTA, and your SUTA rate. Local city payroll taxes are not auto-loaded — use optional flat local % in advanced withholding if needed. See the California payroll taxes example in the article for sample numbers.