Some information about the figures used to generate the answers displayed in The Salary Calculator:
Federal Income Tax
The Salary Calculator uses Income tax information from the tax year 2010 to calculate the deductions made on a salary. Although we have tried to make this site accurate, it is by no means infallible, and is not intended to give you your exact tax data. Because of the number of variables involved, this site can't do the job of Form 1040. The main considerations are included, others are not, but we hope that most people will be able to get a good approximation of what their employer will withhold.
Federal Income tax is paid only on TAXABLE income, which is however much of your salary is left after the deductions have been made. Details of the deductions included in this site, and the tax bands, below.
Standard Deductions
| Single | $9,350 |
| Married Joint | $18,700 |
| Married Sep't | $9,350 |
| Head of House | $12,050 |
| Each Dependent | $3,650 |
Deductions are calculated according to how many dependents you have (excluding yourself and your spouse). There is a standard deduction for each filing status.
For single filing status, the standard deduction is $9,350. If you are married and filing a joint return, the standard deduction is $18,700. If you are married and filing separate returns, the standard deduction is $9,350. If you are the head of the household, the standard deduction is $12,050.
On top of this, for each dependent you list as an exemption, you get an additional $3,650 deducted.
Other Deductions
The "Other Monthly Deductions" allows you to enter a $ value for any other amount you wish to have included as a deduction. This is so you can compensate for things such as retirement plan contributions, which are tax free. Any value you enter in here (the monthly deduction) is multiplied by 12, and then included in the deductions to find the taxable pay. Whatever you enter into this field is also subtracted from the take-home pay value - because contributions of this type are not coming home with you.
Single
| Up to | Tax Rate |
|---|---|
| $8,375 | 10% |
| $34,000 | 15% |
| $82,400 | 25% |
| $171,850 | 28% |
| $373,650 | 33% |
| over $373,650 | 35% |
If your filing status is "single", the standard deduction is $9,350. The first tax band covers annual TAXABLE income from $0 to $8,375. On this band, you will pay 10% income tax. On anything you earn between $8,375 and $34,000, you will pay 15%.
Between $34,000 and $82,400, the tax rate is 25%. $82,400 to $171,850 it's 28%, and from $171,850 to $373,650 it's 33%.
Anything earned over $373,650 is taxed at 35%.
Joint Married
| Up to | Tax Rate |
|---|---|
| $16,750 | 10% |
| $68,000 | 15% |
| $137,300 | 25% |
| $209,250 | 28% |
| $373,650 | 33% |
| over $373,650 | 35% |
If you are a married couple filing a joint return, the standard deduction is $18,700. The first tax band covers annual TAXABLE income from $0 to $16,750. On this band, you will pay 10% income tax. On anything you earn between $16,750 and $68,000, you will pay 15%.
Between $68,000 and $137,300, the tax rate is 25%. $137,300 to $209,250 it's 28%, and from $209,250 to $373,650 it's 33%.
Anything earned over $373,650 is taxed at 35%.
Married Filing Separate
| Up to | Tax Rate |
|---|---|
| $8,375 | 10% |
| $34,000 | 15% |
| $68,650 | 25% |
| $104,625 | 28% |
| $186,825 | 33% |
| over $186,825 | 35% |
If you are married, but filing a separate return, the standard deduction is $9,350. The first tax band covers annual TAXABLE income from $0 to $8,375. On this band, you will pay 10% income tax. On anything you earn between $8,375 and $34,000, you will pay 15%.
Between $34,000 and $68,650, the tax rate is 25%. $68,650 to $104,625 it's 28%, and from $104,625 to $186,825 it's 33%.
Anything earned over $186,825 is taxed at 35%.
Head of Household
| Up to | Tax Rate |
|---|---|
| $11,950 | 10% |
| $45,550 | 15% |
| $117,650 | 25% |
| $190,550 | 28% |
| $373,650 | 33% |
| over $373,650 | 35% |
If you are the head of a household, the standard deduction is $12,050. The first tax band covers annual TAXABLE income from $0 to $11,950. On this band, you will pay 10% income tax. On anything you earn between $11,950 and $45,550, you will pay 15%.
Between $45,550 and $117,650, the tax rate is 25%. $117,650 to $190,550 it's 28%, and from $190,550 to $373,650 it's 33%.
Anything earned over $373,650 is taxed at 35%.
Social Security
| OASDI portion | 6.20% |
| upto a maximum | $6,621.60/year |
| Medicare portion | 1.45% |
Social Security for employees is calculated as the OASDI (Old Age, Survivors and Disability Insurance) portion of 6.20% of income up to $106,800 plus the Medicare portion of 1.45% of all earnings. For the tax year 2010, this means that the maximum OASDI contribution was $6621.60. There is no maximum for the Medicare portion.
State Income Tax
This site does not currently calculate state income tax, but the line has been left in the table to indicate that it is something to be considered when looking at these figures. In the future, we hope to be able to integrate it into the site.
Mortgage Calculations
The Mortgage Repayment Calculator uses an iterative process to home in a repayment amount that completes the mortgage after the entered time period has passed. It also does not include any information about building society fees, or variable rates.
For these reasons, The Mortgage Repayment Calculator is intended just to provide a ballpark figure to allow you to get an idea of the costs of different interest rates etc. Care has been taken to try to make these values accurate, but figures from mortgage lendors are likely to differ.