Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$20,000
Federal Income Tax
- $705
State Income Tax
- $535
Social Security
- $1,240
Medicare
- $290
Total tax
- $2,770
Net pay
* $17,230
Marginal tax rate
23.4%
Average tax rate
13.9%
86.1%
Net pay
13.9%
Total tax
Total tax
Net pay
Summary
If you make $20,000 a year living in the region of Iowa, USA, you will be taxed $2,770. That means that your net pay will be $17,230 per year, or $1,436 per month. Your average tax rate is 13.9% and your marginal tax rate is 23.4%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of $100 in your salary will be taxed $23.39, hence, your net pay will only increase by $76.61.
Bonus Example
A $1,000 bonus will generate an extra $766 of net incomes. A $5,000 bonus will generate an extra $3,831 of net incomes.
NOTE* Withholding is calculated based on the Iowa tables of USA, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.