Teen Paycheck Calculator
Enter wage and hours. See exactly what comes home after taxes.
What comes out of a paycheck
Every paycheck has deductions taken before you see the money. For a teen employee, these typically include federal income tax withholding, state income tax withholding (in states that have one), Social Security tax (6.2% of gross), and Medicare tax (1.45% of gross). Together, these deductions reduce take-home pay by roughly 10–25% depending on the state and annual earnings level.
The paycheck stub (or digital equivalent) breaks down each deduction. Understanding what each line means is one of the most practical financial skills a teen can learn. It demystifies where the money goes and introduces concepts — marginal tax rates, payroll taxes, withholding — that remain relevant for a lifetime.
Why teens typically get most federal tax back
The 2026 standard deduction for a single person claimed as a dependent is $14,600. This means a teen earning less than $14,600 per year owes $0 in federal income tax. If the employer withheld federal tax from paychecks (which most do by default), the teen can file a tax return after the year ends and receive all of it back as a refund.
To avoid withholding in the first place, a teen can write “exempt” on Line 4(c) of Form W-4 if they had no tax liability last year and expect none this year. This is appropriate for most teens working part-time. The exemption must be renewed each year.
FICA — the tax you do not get back
Social Security (6.2%) and Medicare (1.45%) are collectively called FICA taxes. Unlike income tax, they are not refundable. They apply to every dollar of earned wages starting with the first paycheck, regardless of annual income level. There is no “exempt” option for FICA.
These taxes fund Social Security retirement benefits and Medicare health coverage. A teen paying into Social Security today is building credits toward benefits they will claim decades from now. It does not feel helpful at 16, but the system is designed around lifetime contributions.
State income tax basics
Nine states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Teens working in these states only lose FICA from their paychecks.
Other states range from about 2% (North Dakota for low earners) to over 13% (California at the top bracket). Most teen earners fall into the lowest state bracket if their state has a progressive system. Flat-rate states (Illinois at 4.95%, Pennsylvania at 3.07%) apply the same rate regardless of income. State taxes withheld are also often refundable if the teen’s annual income is below the state’s standard deduction.
Should a teen file a tax return?
If any federal or state income tax was withheld: yes, to get it back. Even if no tax was withheld, filing is good practice. A teen’s first tax return is usually extremely simple — a single W-2, no dependents, standard deduction, done in 15–30 minutes through IRS Free File.
Filing also establishes a tax history, which can be helpful later for financial aid applications (FAFSA), apartment rental applications, and credit building. It costs nothing and has no downside.
Understanding your pay stub
A pay stub typically shows: gross pay (hours × rate), federal withholding (income tax estimated by the employer), state withholding (same idea, state level), SS/OASDI (Social Security at 6.2%), Medicare (1.45%), and sometimes local taxes or other deductions (union dues, health insurance, retirement contributions — rare for teen employees).
The YTD (year-to-date) column shows cumulative totals for the calendar year. This is useful for tracking whether you are approaching the standard deduction threshold or for verifying that your W-2 matches at tax time. If the numbers on your W-2 do not match your final pay stub YTD, contact your employer before filing.
Frequently asked questions
Do teens have to pay taxes?
Yes, on earned income. Federal income tax applies if annual earnings exceed the standard deduction ($14,600 for a single dependent in 2026). However, employers withhold taxes from every paycheck regardless of the annual total. If a teen earns less than the standard deduction, they can file a tax return to get the federal withholding back. Social Security and Medicare taxes (FICA) are not refundable.
What’s the difference between gross and net pay?
Gross pay is the total before anything is taken out — hourly wage times hours worked. Net pay (take-home pay) is what actually lands in your bank account after federal tax, state tax, Social Security, and Medicare are withheld. For a typical teen working part-time, net pay is roughly 80–90% of gross depending on the state.
Can my teen claim ‘exempt’ on the W-4?
A teen can write ‘exempt’ on Line 4(c) of Form W-4 if they had no federal tax liability last year AND expect none this year. This stops federal income tax withholding entirely. It does not affect FICA. This is appropriate for most teens earning under $14,600/year. The exemption must be renewed each year by February 15.
Why did Social Security come out of my first paycheck?
Social Security (6.2%) and Medicare (1.45%) are mandatory payroll taxes that fund retirement and healthcare programs. Unlike income tax, they cannot be avoided by claiming exempt and are not refundable through a tax return. They apply to every dollar of earned wages, starting with the first paycheck.
Does this calculator include overtime?
No. This calculator assumes regular hours at the stated hourly rate. Overtime (typically 1.5× the hourly rate for hours over 40/week) would increase gross pay and change the tax calculation. For occasional overtime, run the calculator with your actual total hours and average rate.
What if my teen is a 1099 contractor instead of a W-2 employee?
Independent contractors (1099) do not have taxes withheld by the payer. Instead, they owe self-employment tax (15.3% for Social Security + Medicare combined — both the employee and employer portions) plus income tax. This calculator assumes W-2 employment. 1099 teens should set aside roughly 25–30% of earnings for taxes.
How do I actually get the tax refund?
File a federal tax return (Form 1040) after the tax year ends (typically by April 15). Free filing options include IRS Free File (for AGI under $84,000) and Volunteer Income Tax Assistance (VITA) sites. If state tax was withheld, file a state return too. Most teen returns are simple and take 15–30 minutes. Direct deposit is fastest — refunds typically arrive in 2–3 weeks.