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Glossary

Tax Withholding

Income tax an employer deducts from each paycheck and sends to the government.

Withholding is the income tax your employer estimates and deducts from each paycheck based on your W-4. It's a prepayment against your annual tax bill.

Too much withholding means a refund; too little means you owe at filing. Bonuses are often withheld at a flat supplemental rate.

Put it into practiceTry the Paycheck Calculator (US 2025)Run your own numbers in seconds — free and private.

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