3 Tax-Planning Numbers All Employees Should Know In 2025

Contributing sentiments towards policy:

57% : For federal income-tax withholding, most companies do not use your W-4 rate for that income.
56% : The Social Security tax (at a rate of 6.2%) applies to wages up to a maximum amount per year that is set annually by the Social Security Administration.
55% : The IRS and the Social Security Administration annually adjust for inflation a myriad of key numbers in federal tax-law provisions.
53% : It also comes before the likely bustle over tax legislation by the new Republican White House and Congress: they must decide whether to extend the current tax code, introduced in 2018 by the Tax Cuts & Jobs Act, which expires after 2025.
50% : (By contrast, the Medicare tax is uncapped, with a rate of either 1.45% or 2.35%, depending on your income level.)
50% : As shown by the table above, once you know your marginal tax-bracket rate, you may find the withholding rate of 22% does not cover all of the taxes that you will owe on supplemental wage income.
49% : To avoid penalizing additional income in your mind, be sure you know your effective or average tax rate.
47% : If estimated taxes are the route you choose, know that due dates for quarterly estimated tax payments in the 2025 tax year are April 15, June 16, and September 15 of 2025 and January 15 of 2026.
45% : For example, the income definition of "highly compensated employee," which affects eligibility for employee stock purchase plans (ESPPs) and 401(k) plan non-discrimination testing, is $160,000 in 2025.
37% : January is a good time to consider tax planning for your income in 2025.

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