Federal Tax: $12k Salary Example | US Tax Calculator 2023 (2023)

Before reviewing the exact calculations in the $12,000.00 after tax salary example, it is important to first understand the setting we used in the US Tax calculator to produce this salary example. It is important to also understand that this salary example is generic and based on a single filer status, if you are looking for a precise calculation we suggest you use the US Tax Calculator and alter the settings to match your tax return in 2023.

This $12k after tax salary example includes Federal and State Tax table information based on the 2023 Tax Tables and uses Maryland State Tax tables for 2023. The $12k after tax calculation includes certain defaults to provide a standard tax calculation, for example the State of Maryland is used for calculating state taxes due. You can produce a bespoke Tax calculation or compare salaries in different states and/or at different salary package rates if you need a more detailed salary overview or tax calculation for a specific state.

Simple Annual Overview of deductions on a $12,000.00 Salary

Lets start our review of the $12,000.00 Salary example with a simple overview of income tax deductions and other payroll deductions for 2023. The table below provides the total amounts that are due for Income Tax, Social Security and Medicare. We will look at each of these and a periodic split (hourly rate and deductions, monthly rate and deductions etc.) as we go through the salary example.

$12k Salary Tax Calculation - Salary Deductions in 2023
Gross Annual Salary$12,000.00
Total Federal Income Tax Due$0.00
Total Maryland Income Tax Due$258.62
Social Security Tax Due$744.00
Medicare Due$174.00
Salary After Tax and Deductions$10,823.38

It is worth noting that you can print or email this $12,000.00 salary example for later reference. There is a lot of detailed information which is worth reading and using as a reference, particularly if you file your own tax return without using a tax return software provider and/or accountant.

Net to Gross Salary Calculation

What is $10,823.38 as a gross salary? An individual who receives $10,823.38 net salary after taxes is paid $12,000.00 salary per year after deducting State Tax, Federal Tax, Medicare and Social Security. Let's look at how to calculate the payroll deductions in the US.

How to calculate Tax, Medicare and Social Security on a $12,000.00 salary

The aim of this $12,000.00 salary example is to provide you detailed information on how income tax is calculated for Federal Tax and State Tax. We achieve this in the following steps:

  1. The salary example begins with an overview of your $12,000.00 salary and deductions for income tax, Medicare, Social Security, Retirement plans and so forth. You will have already seen this at the top of this page.
  2. We then provide a periodic breakdown of this calculated figures so you can see how much each deduction is per year, per month, per week, per day and per hour etc. This is the next step and is illustrated in the table below titled US Tax Calculator: Salary Calculation for $12k.
  3. We then provide the formula for calculating each deduction where relevant so you can understand how to calculate salary after tax yourself including Medicare and Social Security deductions in 2023. These calculations are shown available further down this page.
  4. For those who don't fancy doing the manual tax math, the salary example then provides detailed information on how each of the income taxes and deductions are calculated. This means you can see for yourself how Medicare is calculated and how much Medicare you would pay on $60000. This applies to each of the deductions from your $60000 salary.
  5. We finish by answering some frequently asked questions and highlighting supporting calculators and information which we feel you may also find useful.

$12000 Annual Salary - Payment Periods Overview

This table illustrates how a $12000 Annual Salary works out on different payment periods. The payment periods are show in the top columns of the salary table and the various tax and payroll deductions are illustrated in each row.

US Tax Calculator: Salary Calculation for $12k
YearlyMonthly4 Weekly2 WeeklyWeeklyDailyHourly%1
Circumstance Exemptions13,850.001,154.171,065.38532.69266.3554.747.61115.42%
Maryland State Income Tax258.6321.5519.899.954.971.020.142.16%
Social Security744.0062.0057.2328.6214.312.940.416.20%
Salary After Tax10,823.38901.95832.57416.28208.1442.785.9590.19%

What is the Total Income Tax on $12,000.00?

It's a question we probably ask ourselves the most, Mow much tax will I pay? Whether you are comparing salaries when taking a new job, producing a payslip example or understanding what your payslip will look like after a pay raise, it's important to understand how much tax you will pay, particularly when a pay rise or change in financial situations (tax deductions or income changes) mean that your tax calculation will change significantly.

Maryland Income Tax

Income Tax in Maryland is progressive and uses personal income tax (PIT) rates and thresholds which are reviewed and published annually in the Maryland State Tax tables. Income tax in Maryland is calculated by adding Federal Income Tax and State Income tax using the following income tax formula for Maryland:

Maryland Income Tax Formula

MT = (FT-FD) + (ST-SD)



  • MT = Maryland Income Tax
  • FT = Federal Income Tax
  • FD = Federal Income Tax Deductions
  • ST = Maryland State Income Tax
  • SD = Maryland State Income Tax Deductions

Using the Maryland Income Tax Formula, we can now illustrate how to calculate $12,000.00 after tax in Maryland.

Just a reminder... In this $12k salary example which includes simple settings (Single Filler living in Maryland, no children/dependants or special tax circumstances) we provide details on each main payslip deduction that you will typically see each month, including the Federal and State tax deductions. So, how much tax will you pay on $12k, in this tax example:

  1. How much Federal Tax should I pay on $12,000.00? You will pay $ in Federal Tax on a $12,000.00 salary in 2023. How did we calculate Federal Tax paid on $12,000.00?
  2. How much Maryland State Tax should I pay on $12,000.00? You will pay $258.62 in Maryland State tax on a $12,000.00 salary in 2023. How did we calculate Maryland State Tax paid on $12,000.00?

Let's take a look at how we calculated these income tax deductions in more detail. The table below breaks the $12k salary down into specific components like Social Security, Medicare, Federal Tax, State Tax etc. Each factor which is either a tax or deduction from your gross pay is then shown as a percentage so you can understand the true amount of tax and deductions that are taken from your salary is real terms. We have also split the income, tax and deductions into periodic amounts. This is useful if you want to know $12k a years is how much an hour (Answer is $6.20, assuming you work roughly 40 hours per week) or you may want to know how much $12k a year is per month after taxes (Answer is $901.95 in this example, remember you can edit these figures to produce your own detailed tax calculation)

Your personal salary and tax calculations, see the table below for a full breakdown and analysis of your salary and tax commitments for 2023.

(Video) 2023 Income Tax Changes For Individuals

US Tax Calculation for 2023 Tax Year

This tax calculation is based on an annual salary of $12,000.00 when filing an annual income tax return in Maryland

Maryland State Tax Calculation

The table below details how Maryland State Income Tax is calculated in 2023. The Income Tax calculation for Maryland includes Standard deductions and Personal Income Tax Rates and Thresholds as detailed in the Maryland State Tax Tables in 2023

Maryland State Tax Calculation for $12k Salary
Annual Income for 2023$12,000.00
MinusFederal Standard Deduction ($2,250.00)$9,750.00
MinusMaryland State Standard Deduction (1 x $3,200.00 = $3,200.00)$6,550.00
Maryland State Tax Tables
Tax RateThresholdTax Due in Band
2%$0.00 to $1,000.00$20.00
3%$1,000.00 to $2,000.00$30.00
4%$2,000.00 to $3,000.00$40.00
4.75%$3,000.00 to $100,000.00$168.62
State Income Tax Total from all Rates $258.62
Total State Income Tax Due for Maryland$258.62

$12,000.00 Federal Tax Calculation

The table below details how Federal Income Tax is calculated in 2023. The Federal Income Tax calculation includes Standard deductions and Personal Income Tax Rates and Thresholds as detailed in the Federal Tax Tables published by the IRS in 2023

Federal Tax Calculation for $12k Salary
Annual Income 2023$12,000.00
MinusStandard Deduction ($13,850.00)-$1,850.00
MinusPersonal Exemption ($0.00)$0.00
Taxable Income 2023$0.00
Income Tax Breakdown [ 2023 Tax Tables ]
Tax RateThresholdTax Due in Band
10%$0.00 to $11,000.00$0.00
Federal Income Tax Total from all Rates$0.00
Total Federal Income Tax Due$0.00
Federal Insurance Contributions Act tax (FICA) 2023
Social Security Rate6.2%
Social Security Compensation Limit$160,200.00
Social Security Maximum Tax$9,932.00
Social Security Tax Due$744.00
Medicare Tax Rate1.45%
Medicare Due$174.00
State Tax Due$258.62
Local Tax Due Due$0.00
Take Home Pay for 2023

We hope you found this salary example useful and now feel your can work out taxes on $12k salary, if you did it would be great if you could share it and let others know about iCalculator. We depend on word of mouth to help us grow and keep the US Tax Calculator free to use.

Some more Good Calculators that you may find useful

US Salary examples are useful for those who want to understand how income tax is calculated in the US or to get a quick idea of how payroll deductions are calculated in the United States. If you have time and prefer to produce a more detailed and accurate calculation, we suggest you use one of the following tools:

US Salary Calculator

The US Salary Calculator is a great tool for those who want to quickly review salary examples for a specific US state. You can select your filing status, how often you are paid (so you can calculate how much your annual salary is based on your hourly rate etc.), and change between tax years as required. This is useful for quickly reviewing different salaries and how changes to income affect your Federal income tax calculations, State Income tax calculations and Medicare etc.

(Video) How Do Tax Brackets Actually Work?

The US salary calculator includes the latest 2023/24 Federal tax rates and thresholds as published by the IRS and specific State tax tables for 2023/24.

Use the US Salary Calculator

US Salary Comparison Calculator

The US salary comparison calculator is very popular with jobseekers and those looking to compare salaries in different jobs or different income tax calculations and deductions in different states. The salary comparison calculator allows you to compare up to 6 salaries side by side. You can select different states and different tax years to produce a range of different salary comparisons for different filer status (single, married filing jointly, widower etc.). This tool uses standard setting to support standard comparison.

Use the US Salary Comparison Calculator

US Tax Calculator

The US Tax Calculator is a great tool for producing detailed tax and salary calculations. The Tax Calculator allows you to enter specific details including your filer status, number of children, different states, your retirement funds, any withholding so amounts, FICA and other elements that support a more detailed tax calculation. This tool is particularly useful for those preparing their annual tax return as each of the calculations is specifically detailed so you can see how tax credits are applied, how certain tax rates and thresholds are used and how each income tax deduction is calculated.

Use the US Tax Calculator

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What is the federal tax on $12 000? ›

If you make $12,000 a year living in the region of California, USA, you will be taxed $1,050. That means that your net pay will be $10,950 per year, or $913 per month. Your average tax rate is 8.8% and your marginal tax rate is 9.3%.

What is the federal tax rate for 2023? ›

The 2023 tax year will have the same seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you're in.

What is the minimum income to file taxes in 2023? ›

$14,700. $25,900 if both spouses are under age 65. $27,300 if one spouse is under age 65 and one is 65 or older. $28,700 if both are 65 or older.

Do you have to pay taxes if you make less than $12000 a year? ›

The minimum income amount depends on your filing status and age. In 2022, for example, the minimum for single filing status if under age 65 is $12,950. If your income is below that threshold, you generally do not need to file a federal tax return.

How do I calculate federal taxes from my paycheck? ›

How do I calculate taxes from paycheck? Calculate the sum of all assessed taxes, including Social Security, Medicare and federal and state withholding information found on a W-4. Divide this number by the gross pay to determine the percentage of taxes taken out of a paycheck.

How do I figure out my federal tax rate? ›

The percentage of your taxable income that you pay in taxes is called your effective tax rate. To determine effective tax rate, divide your total tax owed (line 16) on Form 1040 by your total taxable income (line 15). Income thresholds for tax brackets are updated annually.

Will 2023 tax brackets change? ›

What are the tax brackets for 2023? The U.S. taxes income at progressively higher rates as you earn more. Those rates—ranging from 10% to 37%—will remain the same in 2023. What's changing is the amount of income that gets taxed at each rate.

How will my paycheck change in 2023? ›

Standard deductions for most taxpayers will increase 6.9% in 2023. The standard deduction for single filers and married people filing separately will rise from $12,950 in 2022 to $13,850 in 2023, and for married taxpayers filing jointly, the deduction will increase from $25,900 to $27,700.

Do I have to file taxes if I made less than $15 000? ›

Not everyone is required to file or pay taxes. Depending on your age, filing status, and dependents, for the 2022 tax year, the gross income threshold for filing taxes is between $12,550 and $28,500. If you have self-employment income, you're required to report your income and file taxes if you make $400 or more.

What is the standard deduction for 2023 over 65? ›

2023 Standard Deduction

Taxpayers who are at least 65 years old or blind can claim an additional standard deduction of $1,500 is allowed for 2023 ($1,850 if you're claiming the single or head of household filing status).

What is the income tax slab for 2022 2023? ›

Income between ₹5 and ₹7.5 lakh, reduced to 10% tax from 20% Income between ₹7.5 lakh to ₹10 lakh, reduced to 15% from the current 20% Income between ₹10 lakh to ₹12.5 lakh, reduced to 20% from the current 30% Income between ₹12.5 lakh to ₹15 lakhs, reduced to 25% from the current 30%

What is the minimum amount you can make without paying taxes? ›

Income requirements for filing taxes

For example, in the 2020 tax year, if someone under 65 filing as a single taxpayer made at least $12,400, they had to file taxes. In 2021, for that same age and filing status, the income threshold was $12,550.

How much money can I make without paying taxes IRS? ›

Under age 65. Single. Don't have any special circumstances that require you to file (like self-employment income) Earn less than $12,950 (which is the 2022 standard deduction for a single taxpayer)

How much federal tax do I pay on $10000? ›

If you make $10,000 a year living in the region of California, USA, you will be taxed $875. That means that your net pay will be $9,125 per year, or $760 per month. Your average tax rate is 8.8% and your marginal tax rate is 8.8%.

What is the federal tax rate on $125 000? ›

If you make $125,000 a year living in the region of California, USA, you will be taxed $40,664. That means that your net pay will be $84,336 per year, or $7,028 per month. Your average tax rate is 32.5% and your marginal tax rate is 43.0%.

How much federal income tax do you pay on $15000? ›

If you make $15,000 a year living in the region of California, USA, you will be taxed $1,518. That means that your net pay will be $13,483 per year, or $1,124 per month.

How much federal tax do you pay on 13000? ›

If you make $13,000 a year living in the region of California, USA, you will be taxed $1,143. That means that your net pay will be $11,858 per year, or $988 per month. Your average tax rate is 8.8% and your marginal tax rate is 18.8%.


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