What is tax withholding?
Withholding is the money your employer takes out of each paycheck to cover your income and payroll taxes. It includes federal income tax (based on 2026 brackets and your standard deduction), Social Security (6.2% up to $184,500), Medicare (1.45%), and applicable state tax.
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Adjusting your withholding
You control federal withholding with Form W-4. Too little withheld means a tax bill in April; too much means a refund but a smaller paycheck all year. Aim to break even.