employed get to deduct the employer portion as a business expense in calculating their income tax. (Check here and double the rate only if you plan to be self-employed.) Annual Salary and bonus (up to $128,700): $_ x 7.65% = The Social security tax does not apply to amounts earned over $128,700. However, the Medicare tax is in full effect for all levels of salary. Therefore, If your annual salary Is over $128,700, you will pay the amount calculated above PLUS 1.45% of the amount of salary over $128,700. Calculate any additional amount here: Amount of salary and bonus over $ 128,700 x 1.45% = $. Total FICA tax: $. + 12 = $_ / month for your budget. Local Income tax- Some cities and counties, have a local income tax. Seattle does not currently have an Income tax. If you plan to live and work somewhere other than Seattle, you may use the following 2018 article for a quick look at which states have some local income taxes https://www.thebalance.com/cities-that-levy-income-taxes-3193246 . Calculate your local Income tax, If there Is one: Annual Salary $_ 9% = tax : 12 months = $_ per month -OR- No local income tax _ _(check mark this spot if there is no local income tax) Federal Income tax- Keep the following in mind as you fill out the federal tax calculations on the next page: You can contribute up to $5,500 per year in either a traditional IRA or a Roth IRA, or a combination of the two unless you make over $135,000 per year, in which case you can NOT contribute to a Roth IRA. Contributions to Roth IRAs are not tax deductible. However, THEY ARE THE BETTER IRA OPTION FOR MANY OF YOU, because the earnings on a Roth IRA are NEVER TAXED. So even if the Roth IRA grows to $1 million or more by the time you retire, you'll never be taxed on the interest earnings! (In contrast, contributions to traditional IRAs are tax-deductible now, but the earnings ARE taxed when you withdraw the money at retirement). FYI: Experts recommend saving 10-15% of your gross salary each year, in TOTAL, for retirement. These savings can be split between 401(k), ROTH IRA, and traditional IRAS. Assume your employer's 401(k) plan will offer a match of up to 3% of your salary. So, to get the free money (match), you would want to contribute 3% of your annual salary to the 401(k) plan. If you want to save 10% in total, that means the 7% of your annual salary should be contributed to a ROTH IRA or a traditional IRA. Use annual figures, not monthly amounts, for the tax calculations. Where applicable, divide by 12 for amounts to put on budget. Federal Income Tax Calculation (these tax figures assume you are SINGLE): For Budget Annual Salary (and bonus, if any). /12=