How Much Tax Do Part-Time Workers Pay?

Part-time workers often wonder how much of their paycheck will go toward taxes. Unlike full-time employees, they often experience fluctuating earnings, which can affect tax rates and withholding amounts. Understanding these factors helps avoid surprises during tax season.

Even with lower earnings, part-time workers must still pay payroll taxes, potential income tax withholding, and meet annual filing requirements. Knowing what to expect can prevent underpayment penalties or unexpected refunds.

Annual Income Thresholds

The tax a part-time worker owes depends on total annual earnings. The IRS provides a standard deduction, which reduces taxable income. In 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. If earnings fall below these amounts, no federal income tax is owed.

Beyond the standard deduction, tax brackets determine how income is taxed. In 2024, the lowest federal rate is 10% for income up to $11,600 for single filers. Income beyond this is taxed at progressively higher rates, with the next bracket at 12% for earnings between $11,600 and $47,150. A part-time worker earning $20,000 would have the first $14,600 covered by the standard deduction, leaving $5,400 subject to tax. The first $1,000 would be taxed at 10%, and the remaining $4,400 at 12%, resulting in a federal tax bill of $680.

State income taxes also apply in most states. Some, like Texas and Florida, do not impose an income tax, while others, such as California and New York, have progressive tax systems. In California, a part-time worker earning $20,000 would pay 1% on the first $10,412 and 2% on income above that, resulting in a state tax bill of about $196.

Payroll Taxes

All part-time workers must pay payroll taxes, which fund Social Security and Medicare. These taxes are separate from federal income tax and are withheld directly from each paycheck. The Federal Insurance Contributions Act (FICA) requires a 6.2% Social Security tax on earnings up to $168,600 in 2024 and a 1.45% Medicare tax on all wages. Employers match these contributions, doubling the total amount paid into these programs.

Independent contractors pay a 15.3% self-employment tax, covering both the employee and employer portions of Social Security and Medicare. They can deduct the employer-equivalent portion—7.65%—from taxable income when filing. Misclassification as an independent contractor instead of an employee can lead to unexpected tax liabilities and penalties.

High earners making over $200,000 as single filers or $250,000 for married couples filing jointly must also pay a 0.9% Additional Medicare Tax on income exceeding these thresholds. While uncommon for part-time workers, those with multiple jobs or bonuses should be aware of this tax.

Withholding on Part-Time Wages

Employers determine tax withholding based on IRS Form W-4, which allows employees to adjust withholding by claiming dependents, additional income, or extra deductions. If too little is withheld, the worker may owe taxes when filing; excessive withholding results in a larger refund but smaller take-home pay.

Part-time employees with multiple jobs should be especially careful about withholding. The IRS withholding tables assume a single job provides all income, so earnings from multiple employers can push taxable income into a higher bracket. The IRS Tax Withholding Estimator can help workers calculate the correct amount and update their W-4 accordingly.

Some workers may be exempt from withholding if they had no tax liability in the previous year and expect none in the current year. Those eligible must write “Exempt” on their W-4, but this status must be renewed annually. If incorrectly claimed, the IRS may issue a lock-in letter requiring a higher withholding rate, which employers must enforce.

Potential Deductions and Credits

Part-time workers can reduce tax liability through deductions and credits. Education-related tax benefits, such as the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC), can be valuable for students. The AOC provides up to $2,500 per year for those pursuing a degree, while the LLC offers a credit of 20% on the first $10,000 of qualified expenses, up to $2,000, for a broader range of educational pursuits.

Workers with significant medical expenses may qualify for a deduction if unreimbursed costs exceed 7.5% of adjusted gross income (AGI). Since part-time employees often lack employer-sponsored health insurance, they may be able to deduct premiums and other medical costs. Contributions to Health Savings Accounts (HSAs) are also deductible, and withdrawals for qualified expenses remain tax-free.

The Earned Income Tax Credit (EITC) is another potential benefit, particularly for lower-income part-time employees. This refundable credit can provide up to $7,830 for those with qualifying children or a smaller amount for single filers without dependents. Eligibility depends on income and filing status, making it an important consideration for workers earning below certain thresholds.

Filing Requirements

Even if a part-time worker has taxes withheld, they may not always be required to file a tax return. The IRS sets filing thresholds based on income, filing status, and age. In 2024, single filers under 65 must file if gross income exceeds $14,600. Those earning below this amount generally do not need to file unless they have self-employment income exceeding $400, which triggers a filing requirement due to self-employment tax.

Filing a return can still be beneficial. Workers who had federal income tax withheld but earned less than the standard deduction may be eligible for a full refund. Refundable credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit can also result in a refund even if no tax was owed. Those who qualify should file to claim these benefits, as the IRS does not automatically issue refunds without a return.