Withholding Benchmarks by Income and Filing Status
Federal income tax withholding benchmarks for 2025 (standard deduction, biweekly payroll, no dependents)
| Annual Salary | Single Filer Withholding | MFJ (Both Working) Each | MFJ (One Income) Total |
|---|---|---|---|
| $40,000 | ~$2,500/year ($96/pay) | ~$1,500/year each | ~$2,800/year |
| $60,000 | ~$5,300/year ($204/pay) | ~$3,200/year each | ~$5,800/year |
| $80,000 | ~$8,500/year ($327/pay) | ~$5,200/year each | ~$9,200/year |
| $100,000 | ~$12,200/year ($469/pay) | ~$7,500/year each | ~$13,000/year |
| $150,000 | ~$22,000/year ($846/pay) | ~$14,000/year each | ~$25,000/year |
| $200,000 | ~$33,000/year ($1,269/pay) | ~$21,000/year each | ~$38,000/year |
📈The Average Refund Is Too High
Average US federal tax refund: approximately $3,100. This means the average employee withholds $3,100 more than necessary — an interest-free loan to the IRS. At current 4.5% HYSA rates, that’s $140 in foregone annual interest. Optimal withholding: break-even or small refund under $1,000.
How Dependents Reduce Withholding
How Child Tax Credit claims reduce withholding
| Child Tax Credit Claimed | Withholding Reduction (Annual) | Per Paycheck (Biweekly) | How to Claim |
|---|---|---|---|
| 1 child under 17 | ~$2,000 | ~$77 | Step 3: Enter $2,000 |
| 2 children under 17 | ~$4,000 | ~$154 | Step 3: Enter $4,000 |
| 3 children under 17 | ~$6,000 | ~$231 | Step 3: Enter $6,000 |
| Other dependents (adult) | ~$500/person | ~$19 | Step 3: Enter $500 per |
Verify Your Withholding is Accurate
Enter your salary, filing status, and dependents to see your target withholding amount and how to adjust your W-4.