The Difference Between Federal vs. State Withholding Tax

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Federal Withholding Tax vs. State Withholding Tax: An Overview

In simplest terms, withholding from your paychecks is an estimate of how much you’ll owe in taxes at year’s end based upon your level of income and other factors. That number is divided by the number of pay periods you have in a year, or in the case of hourly employees, by how many hours you work in a pay period.

If it’s likely that you’ll owe the government $10,000 and you’re paid a weekly salary, $192.30 will be withheld from each of your paychecks and forwarded to the government on your behalf: $10,000 divided by 52.

There’s very little difference between state and federal withholding

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