How Much Tax Is Deducted From a Paycheck in Georgia?

When an individual receives a paycheck, the gross earnings are subject to various tax withholdings. Understanding these deductions is important for managing personal finances and accurately anticipating net income. These deductions contribute to federal and state programs, fulfilling tax obligations throughout the year.

Federal Payroll Tax Withholdings

Federal taxes represent a substantial portion of paycheck deductions for most employees. These include federal income tax and contributions to Social Security and Medicare, collectively known as Federal Insurance Contributions Act (FICA) taxes.

Federal income tax withholding is determined by the information provided on an employee’s Form W-4. This form considers filing status, such as single or married filing jointly, and any adjustments for dependents or additional income. The federal income tax system operates on a progressive basis, meaning higher income levels are subject to higher marginal tax rates. While specific tax brackets are not withheld directly, the W-4 helps employers estimate the appropriate amount to deduct to align with an individual’s projected annual tax liability.

FICA taxes fund Social Security and Medicare, which provide benefits for retirees, disabled individuals, and healthcare for eligible citizens. For 2025, the employee’s share of Social Security tax is 6.2% of wages, up to a wage base limit of $176,100. The Medicare tax rate for employees is 1.45% of all wages, with no wage base limit. An additional Medicare tax of 0.9% applies to individual wages exceeding $200,000, or $250,000 for married couples filing jointly, with employers required to withhold this extra amount once an employee’s wages surpass the $200,000 threshold, regardless of filing status.

Georgia State Income Tax Withholdings

Beyond federal obligations, employees in Georgia also have state income tax withheld from their paychecks. Georgia operates a flat individual income tax rate, which simplifies the calculation compared to a progressive system with multiple brackets. For the 2025 tax year, Georgia’s individual income tax rate is 5.19%. This rate applies to taxable income after accounting for state-specific deductions and exemptions.

Georgia provides certain deductions and exemptions that reduce the amount of income subject to state tax withholding. For 2025, the standard deduction amounts are $12,000 for single filers, heads of household, married filing separately, and qualifying surviving spouses, and $24,000 for those married filing jointly. While personal exemptions have largely been replaced, Georgia maintains a dependent exemption. For 2025, the income tax exemption for dependents is $4,000 per dependent. These exemptions and deductions directly reduce an individual’s taxable income, thereby lowering the amount of state income tax withheld from their paycheck.

Understanding Your Paystub

A paystub serves as a record of an employee’s earnings and deductions for a specific pay period. Paystubs typically separate current pay period amounts from year-to-date (YTD) totals, offering a comprehensive view of earnings and withholdings.

The deductions section of a paystub itemizes all amounts withheld. Federal income tax is commonly abbreviated as “FIT” or “FWT.” Social Security withholdings may appear as “SS,” “OASDI,” or “FICA-SS,” while Medicare deductions are often labeled “Med” or “HI.” Georgia state income tax withholdings are typically identified by abbreviations such as “GA SIT” or “GA W/H.” Locating these specific labels helps in verifying that the correct taxes are being withheld. Understanding these entries allows individuals to reconcile their take-home pay with their expected earnings and monitor their annual tax contributions.