Find out how much federal income tax should be withheld from each paycheck — and whether you'll owe or get a refund.
The W-4 (Employee's Withholding Certificate) tells your employer how much federal income tax to withhold from your paycheck. The 2020 redesign removed allowances — you now enter dollar amounts directly for multiple jobs, deductions, and dependents.
The new W-4 doesn't use allowance numbers (0, 1, 2). Instead, you leave Step 3 and 4 blank for standard withholding, or fill them in to adjust. Leaving everything blank gives you standard withholding — which works for most single-job households.
To avoid underpayment penalties, you must withhold at least 90% of your current year tax or 100% of last year's tax (110% if income > $150,000). If you have side income, fill in Step 4(c) to add extra withholding each period.
Update your W-4 after any major life change: marriage, divorce, new child, buying a home, starting a second job, or a significant pay change. The IRS recommends reviewing it annually.
No — this calculator estimates federal withholding only. State income tax is separate and varies by state. Seven states have no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming.