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Payroll tax calculator
One employee, one calendar year: what is withheld and what the employer adds.
Total cost of this employee$64,875$4,875.00 of employer payroll tax (8.13% of wages)
| Withheld from the employee | |
|---|---|
| Social Security 6.2% | $3,720.00 |
| Medicare 1.45% | $870.00 |
| Employee payroll tax | $4,590.00 |
| Paid by the employer | |
| Social Security 6.2% | $3,720.00 |
| Medicare 1.45% | $870.00 |
| FUTA 0.6% of $7,000 | $42.00 |
| Texas SUTA 2.7% of $9,000 | $243.00 |
| Employer payroll tax | $4,875.00 |
| Total cost: wages + employer tax | $64,875.00 |
Per paycheck (26 a year) about $176.54 is withheld for payroll tax and the employer adds $187.50; FUTA and SUTA stop once yearly wages pass their wage base, so they fall early in the year. Income tax withheld from the employee is not an employer cost.
Payroll taxes in 2026: who pays what
An employee pays 7.65% of wages in FICA tax and the employer pays the same 7.65% again; only the employer pays federal and (in most states) state unemployment tax[p15]. The table lists every federal payroll tax and the 2026 limits:
| Tax | Employee | Employer | Wages taxed |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | First $184,500 per employer |
| Medicare (HI) | 1.45% | 1.45% | All wages |
| Additional Medicare | 0.9% | None | Wages over $200,000 in the year |
| FUTA (federal unemployment) | None | 6.0% less a credit of up to 5.4% = 0.6% | First $7,000 per employee |
| FUTA in California (2026) | None | 0.6% + 1.5% credit reduction = 2.1% | First $7,000 per employee |
| State unemployment (SUTA) | Only in Alaska, New Jersey and Pennsylvania | State rate | State wage base |
| Federal income tax | Per Form W-4 | None | Withheld, not an employer cost |
The Social Security wage base is $184,500 for 2026[ssa]. The 0.9% Additional Medicare tax is withheld from the employee only, starting in the pay period when wages pass $200,000, and the employer does not match it[tc751]. FUTA is figured on the first $7,000 of each employee's wages; the 5.4% credit requires paying state unemployment tax in full and on time[tc759], and California employers lose 1.5% of it for 2026 because the state still owes a federal loan[cr26]. The federal unemployment tax (FUTA) page explains the credit reduction and Form 940.
Worked example: the cost of a $60,000 employee
For a $60,000 salary in Texas with the 2026 new-employer rate:
- Employee FICA: $60,000 × 6.2% = $3,720.00 Social Security and $60,000 × 1.45% = $870.00 Medicare, $4,590.00 in all.
- Employer FICA: the same $4,590.00.
- FUTA: $7,000 × 0.6% = $42.00.
- Texas SUTA: $9,000 × 2.7% = $243.00[tx-twc].
- Total cost: $60,000 + $4,875.00 = $64,875.00, or 8.13% on top of wages.
The same employee in California costs $64,982.00: FUTA is $147.00 at 2.1%, and new California employers pay 3.4% UI plus 0.1% employment training tax on the first $7,000 ($245.00)[ca-edd]. Employer cost as a share of wages falls for high earners because Social Security stops at $184,500:
| Yearly wages | Employee pays | Employer pays | Employer % of wages | Total cost |
|---|---|---|---|---|
| $30,000 | $2,295.00 | $2,580.00 | 8.60% | $32,580.00 |
| $45,000 | $3,442.50 | $3,727.50 | 8.28% | $48,727.50 |
| $60,000 | $4,590.00 | $4,875.00 | 8.13% | $64,875.00 |
| $100,000 | $7,650.00 | $7,935.00 | 7.94% | $107,935.00 |
| $184,500 | $14,114.25 | $14,399.25 | 7.80% | $198,899.25 |
| $250,000 | $15,514.00 | $15,349.00 | 6.14% | $265,349.00 |
2026 state unemployment tax (SUTA) in the 10 largest states
State unemployment tax is a percentage of each employee's wages up to a state wage base, set every year by the state workforce agency. A new employer pays a fixed entry rate for its first years, then an experience rate based on former employees' benefit claims. The 2026 figures below come from each agency's own rate pages:
| State | Taxable wage base | New-employer rate | Most per employee (new employer) | Notes |
|---|---|---|---|---|
| California | $7,000 | 3.4% UI + 0.1% ETT[ca-edd] | $245.00 | New rate for 2 to 3 years. Employees also pay 1.3% SDI on all wages. |
| Texas | $9,000 | 2.7%[tx-twc] | $243.00 | Entry rate until the account has enough history for an experience rate. |
| Florida | $7,000 | 2.7%[fl-dor] | $189.00 | Reemployment tax; initial rate until 10 quarters of reports. |
| New York | $17,600 | 4.1%[ny-dol] | $721.60 | Includes the 0.075% Re-employment Services Fund. The wage base is now 18% of the state average wage. |
| Pennsylvania | $10,000 | 3.822% (construction 10.5924%)[pa-li] | $382.20 | Includes the 9.2% surcharge. Employees pay 0.07% on all wages. |
| Illinois | $14,250 | 3.35% (NAICS 56: 3.45%)[il-ides] | $477.38 | Includes the 0.55% fund building rate. |
| Ohio | $9,000 | 2.85% (construction 5.85%)[oh-jfs] | $256.50 | 2.7% new-employer rate plus a 0.15% surcharge. |
| Georgia | $9,500 | 2.7% (2026 notice not confirmed)[ga-dol] | not confirmed | GDOL's standing new-employer rate; the 2026 DOL-626 rate notice was not available to us. |
| North Carolina | $34,200 | 1%[nc-des] | $342.00 | Beginning-employer rate; may rise after two years. |
| Michigan | $9,000 | 2.7%[mi-uia] | $243.00 | $9,000 for employers that qualify; $9,500 otherwise. Construction differs. |
Employers that already have a rate notice should enter their own rate with "Enter my state rate" above. New York's wage base jumped for 2026 because the state now sets it at 18% of the average annual wage[ny-45], and Illinois raised its base to $14,250[il-ides]. North Carolina's base is the highest of the ten at $34,200[nc-des], but its new-employer rate is only 1%.
Common payroll tax mistakes
- Matching the 0.9% Additional Medicare tax. The employer share of Medicare stays 1.45% at every wage level.
- Charging FUTA and SUTA all year. They stop once an employee passes the $7,000 FUTA base and the state base, so most of the cost lands in the first months of the year.
- Paying state unemployment tax late. The FUTA credit of up to 5.4% depends on paying state tax on time; losing it raises FUTA from $42 to up to $420 per employee.
- Keeping the new-employer rate in the budget. Entry rates end after one to three years, depending on the state; check each year's rate notice.
- Counting income tax as an employer cost. Federal and state income tax are withheld from the employee's pay; the employer only forwards them.
The employee sideTo see the employee's take-home pay after federal, FICA and state withholding, use the paycheck calculator or a state page such as the California paycheck calculator. Bonuses carry the same FICA and FUTA; the bonus tax calculator shows the 22% federal withholding on them.
Frequently asked questions
How much are employer payroll taxes in 2026?
7.65% of wages for Social Security and Medicare (6.2% stops at $184,500), plus FUTA of up to $42 per employee ($147 in California) and state unemployment tax. For a $60,000 employee in Texas that is $4,875.00, or 8.13% of wages.
What percentage of payroll taxes does the employee pay?
7.65% of wages: 6.2% Social Security up to $184,500 and 1.45% Medicare, plus 0.9% on wages over $200,000. Employees in Alaska, New Jersey and Pennsylvania also pay a small state unemployment contribution.
How do I calculate payroll taxes for an employee?
Multiply wages by 6.2% (up to $184,500) and 1.45% for each side of FICA, add the employee-only 0.9% above $200,000, then add FUTA (0.6% of the first $7,000) and your state unemployment rate times the state wage base for the employer.
Is FUTA tax taken out of an employee's paycheck?
No. FUTA is paid only by the employer and reported on Form 940. It never appears as a deduction on a pay stub.
Sources
- Publication 15 (Circular E), Employer's Tax Guide, for use in 2026
- Contribution and Benefit Base ($184,500 for 2026)
- Topic no. 751, Social Security and Medicare withholding rates
- Topic no. 759, Form 940 – Employer's Annual Federal Unemployment (FUTA) Tax Return
- Final 2026 FUTA Credit Reductions (spreadsheet)
- Contribution Rates, Withholding Schedules, and Meals and Lodging Values (2026: UI, ETT, SDI)
- Unemployment Insurance Tax Rates
- Reemployment Tax Rate Information
- Unemployment Insurance Rate Information
- NYS-45 Quarterly Reporting (UI wage base: 2026 $17,600)
- UC Tax Yearly Tax Highlights (2026)
- Historical Rate Chart (includes 2026) and EA-50 (11/2025), 2026 State Experience Factor and Contribution Rates
- 2026 Contribution Rate Details (taxable wage base and new-employer rates)
- Employers FAQs – Unemployment Insurance
- Tax Rate Information (2026)
- Michigan Employer Advisor, December 2025 (2026 taxable wage base)