Withholding
Withholding is the income tax your employer takes out of each paycheck and sends to the IRS on your behalf, based on the W-4 you fill out. Get it right and you roughly break even at tax time; too little means a bill, too much means a refund of your own money.
A large refund is not a win — it is the return of money you lent the government at no interest for up to sixteen months. Withholding is driven entirely by the W-4 you filed, which is a setting rather than a fact, and it most often goes wrong after a marriage, a second job, or a working spouse, because each job withholds as though it were your only income. Underpaying has a limit: penalties are generally avoided if you pay at least 90% of the current year's tax, or 100% of last year's — 110% for higher earners. Aiming at a small balance due rather than a large refund converts an annual lump into monthly cash flow.
Put it to work
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).
Federal Income Tax Calculator
Estimate your 2026 federal income tax: total tax, effective and marginal rates, and a bracket-by-bracket breakdown using official IRS figures.