US: First paycheck · 5 min read
How do I fill out a W-4, and why is my first paycheck so small?
How the W-4 works for a first job in the US, what comes out of a paycheck (federal and state tax, 7.65% FICA, benefits, 401(k)) and how to check the math.
The short answer
The W-4 tells your employer how much federal income tax to withhold. For a single person with one job and no dependents, you fill in Step 1 with your details and filing status, skip Steps 2 through 4, and sign Step 5; the default withholding is then close to right. Your paycheck is smaller than your salary divided by your pay periods because of federal income tax, 7.65% for Social Security and Medicare, state and sometimes city tax, health insurance premiums and any 401(k) contribution. On a $60,000 salary paid twice a month, gross pay is $2,500 and take-home is usually $1,850 to $1,950 depending on state and benefits. The standard deduction for 2026 is $16,100 for a single filer, so your first $16,100 of annual income is federal-tax-free.
Key takeaways
- One job, single, no dependents: complete Step 1, sign Step 5, done. Steps 2 to 4 are for a second job, a spouse's income, dependents, or extra withholding.
- FICA is 7.65% of every paycheck (6.2% Social Security, 1.45% Medicare) and isn't affected by the W-4.
- Expect take-home pay of 72 to 80% of gross for a new graduate, depending on state tax and benefits.
- If you start mid-year, the default W-4 over-withholds slightly; you get it back as a refund in the spring.
On this pageThe W-4, step by step
The W-4, step by step
| Step | What it asks | What most new grads do |
|---|---|---|
| 1 | Name, address, Social Security number, filing status | Fill in; check Single |
| 2 | Multiple jobs or a working spouse | Skip unless you hold two jobs at once |
| 3 | Dependents | Skip unless you have children or support someone |
| 4(a) | Other income without withholding, such as interest or freelance work | Skip, or enter an estimate if you have a side business |
| 4(b) | Deductions beyond the standard deduction | Skip; almost no new grad itemizes |
| 4(c) | Extra withholding per paycheck | Skip, or add $20 to $50 if you'd rather get a refund than owe |
| 5 | Signature and date | Sign |
What comes out of a paycheck
Federal income tax, calculated from your W-4 and the IRS tables, usually 8 to 12% of gross for a new graduate. Social Security at 6.2% of wages up to the annual cap and Medicare at 1.45% with no cap, together 7.65%, which the W-4 doesn't touch. State income tax, from zero in Texas, Florida, Washington and six other states to around 5 to 6% in many others, and city tax in a few places such as New York City. Health, dental and vision premiums if you enrolled. Your 401(k) contribution, taken before federal tax if it's traditional. Smaller items like life insurance, transit benefits or union dues. Each appears as a line on your pay stub.
A worked paycheck at $60,000
Paid semi-monthly, gross is $2,500. A 5% traditional 401(k) contribution takes $125 first. Federal income tax on the rest, after the $16,100 standard deduction is spread across the year, comes to roughly $220. Social Security is $155 and Medicare $36. State tax in a typical 5% state is about $110. A health premium might be $80. Net pay lands near $1,775. In a no-income-tax state with no 401(k) contribution, the same salary nets closer to $2,010. The pay stub shows each of these, and the year-to-date column lets you check the percentages.
Checking the math and fixing it
- Use the IRS Tax Withholding Estimator after your second paycheck. It tells you whether you're on track to owe or get a refund.
- If you started mid-year, the default W-4 assumes you earned all year, so you'll likely get a refund. That's fine, or adjust Step 4(c) to zero if you want the cash now.
- If you have a side income, add an estimate in Step 4(a) or set aside 25 to 30% of it, because nobody withholds on it.
- File a new W-4 any time your situation changes: a second job, marriage, a child.
Illustrative example: the refund that was a loan
A graduate starts a $58,000 job in August, leaves the W-4 at the defaults, and gets a $1,400 refund the next April. The default tables assumed she'd earned $58,000 all year when she'd earned $24,000, so she over-withheld. She's pleased by the refund until a coworker points out she lent the government $1,400 interest-free. The next year she runs the estimator in January and her paychecks go up $55 each.
Questions people ask
- Should I claim 0 or 1 on my W-4?
- That question is from the old form. Since 2020 the W-4 has no allowances. For a single person with one job, leaving Steps 2 through 4 blank produces withholding roughly equal to your tax bill. If you want a bigger refund, add extra withholding in Step 4(c). Claim exemption only if you really will owe no tax.
- Why is so much tax taken out of my first paycheck?
- Usually it isn't more; it's the same percentage you'll see all year. Federal tax on a $60,000 salary runs about 9 to 10% of gross after the standard deduction, FICA adds 7.65%, and state tax adds zero to 6% or so. A first check that includes a signing bonus can be withheld at a higher rate and evens out later.
- What's the difference between gross pay and net pay?
- Gross is your salary for the period before anything is taken out. Net, or take-home, is what hits your bank account after federal and state income tax, FICA, health and other insurance premiums, retirement contributions and any other deductions. Budget on net. Your pay stub lists each deduction; read the first one line by line.
- What are the 2026 federal tax brackets for a single filer?
- After the $16,100 standard deduction, taxable income is taxed at 10% up to $12,400, 12% up to $50,400, 22% up to $105,700, and 24% up to $201,775, with higher brackets above that. Brackets are marginal: only the dollars inside each band are taxed at that rate, so a $60,000 salary has an effective federal rate near 9%, not 22%.
Exercises are practice, not evidence of career fit or a qualification. How to read our guides and report a correction.
Sources
- About Form W-4, Employee's Withholding Certificate · Internal Revenue Service
- Tax inflation adjustments for tax year 2026 · Internal Revenue Service
- Contribution and benefit base · Social Security Administration
How this page is written
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