If I Make $13,000 a Year, How Much Tax Do I Owe?

Understanding how much tax you owe on a $13,000 annual income depends on deductions, credits, and state taxes. While federal tax liability may be minimal or even zero, payroll and state taxes could still apply.

Federal Tax Bracket Basics

The U.S. tax system is progressive, meaning different portions of income are taxed at different rates. In 2024, single filers pay 10% on income up to $11,600 and 12% on earnings between $11,601 and $47,150.

For a $13,000 income, the first $11,600 is taxed at 10%, totaling $1,160. The remaining $1,400 is taxed at 12%, adding $168. This results in a preliminary tax liability of $1,328 before deductions or credits. However, deductions like the standard deduction can significantly reduce taxable income.

Filing Status

Filing status affects tax rates and eligibility for deductions and credits. The most common statuses for low-income earners are Single and Head of Household.

Single filers are unmarried with no dependents. Those who support a qualifying dependent and meet specific requirements may file as Head of Household, which offers lower tax rates and a higher standard deduction. To qualify, you must have paid more than half the cost of maintaining a home for a dependent.

Married individuals can file jointly or separately. Filing jointly generally results in lower taxes due to wider tax brackets and additional deductions. However, in some cases—such as when one spouse has high medical expenses or student loan payments tied to income-driven repayment plans—Married Filing Separately may be beneficial.

Standard Deduction

For 2024, the standard deduction for a Single filer is $14,600, which exceeds a $13,000 income. This reduces taxable income to zero, eliminating federal income tax liability.

The standard deduction simplifies tax filing by removing the need to itemize expenses. While itemizing can benefit higher-income individuals with significant deductible expenses, for someone earning $13,000, the standard deduction is almost always the best option.

Credits and Deductions

Tax credits directly reduce the amount owed and can sometimes result in a refund.

The Earned Income Tax Credit (EITC) is relevant for low-income earners. In 2024, a single filer with no children may qualify for up to $632, while those with one child could receive over $4,000. Eligibility depends on income, filing status, and investment income, which must be below $11,000. Because the EITC is refundable, it can generate a refund even if no tax is owed.

The Saver’s Credit rewards retirement savings. If you contribute to a traditional IRA or an employer-sponsored plan like a 401(k), you may receive a credit worth up to 50% of contributions, with a maximum credit of $1,000 for single filers. This credit phases out at higher incomes but remains fully available at $13,000. Unlike the EITC, the Saver’s Credit is non-refundable, meaning it can only reduce tax liability to zero but will not generate a refund.

State Obligations

While federal taxes may be minimal or nonexistent for someone earning $13,000, state taxes vary.

Nine states, including Texas, Florida, and Washington, do not have a state income tax. Others, like California and New York, have progressive tax systems. In California, for example, the lowest tax bracket starts at 1% for income up to $10,412, meaning only a small portion of a $13,000 income would be taxed. Some states also offer credits similar to the federal Earned Income Tax Credit, which can reduce or eliminate state tax liability.

Beyond income taxes, some states impose local taxes or require contributions to programs like California’s State Disability Insurance (SDI) tax. Additionally, states with high sales taxes, such as Tennessee and Louisiana, indirectly impact low-income earners by increasing the cost of goods and services.

Withholding and Estimated Payments

Even if federal tax liability is eliminated through deductions and credits, payroll taxes still apply.

Employers automatically withhold federal income tax, Social Security, and Medicare taxes from wages. Social Security and Medicare taxes, known as FICA taxes, total 7.65%—6.2% for Social Security and 1.45% for Medicare. On a $13,000 income, this amounts to approximately $994. These payroll taxes are not reduced by deductions or credits.

For self-employed individuals, tax obligations differ. Without an employer to withhold taxes, self-employed individuals must pay self-employment tax, covering both the employee and employer portions of Social Security and Medicare, totaling 15.3%. On a $13,000 income, this amounts to approximately $1,989. However, half of this amount can be deducted when calculating adjusted gross income, providing some relief.