Every US paycheck has federal and state taxes withheld before you receive it. Understanding each deduction helps you plan your finances and maximize take-home pay.

What Is Withheld From Your Paycheck?

Federal income tax — based on 2024 brackets (10%–37%) and your W-4 elections.
State income tax — varies by state (0%–13.3%). Nine states have no income tax.
Social Security — 6.2% on wages up to $168,600 wage base (2024).
Medicare — 1.45% on all wages; +0.9% for high earners over $200K.
Pre-tax deductions — 401(k), HSA, health insurance reduce your taxable income.

States With No Income Tax

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on wages. Residents in these states keep more of each paycheck.

Highest State Income Tax Rates (2024)

California tops the list at 13.3%, followed by Hawaii (11%), New Jersey (10.75%), Oregon (9.9%), and Minnesota (9.85%). High-income earners in these states face the largest state tax burden.