{
  "$comment": "US federal payroll rules for tax year 2025 (annual liability for a full-year employee). Brackets from Rev. Proc. 2024-40; standard deduction and child tax credit as amended by OBBBA (P.L. 119-21) per Rev. Proc. 2025-32 §2 and the 2025 Schedule 8812; Schedule 1-A (2025); Pub 15 (2025); Notice 2024-80; Rev. Proc. 2024-25; Pub 15-B (2025).",
  "country": "us",
  "jurisdiction": "us",
  "taxYear": "2025",
  "period": {
    "start": "2025-01-01",
    "end": "2025-12-31",
    "tz": "America/New_York"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "brackets": {
        "single": [
          {
            "upTo": "11925",
            "rate": "0.10"
          },
          {
            "upTo": "48475",
            "rate": "0.12"
          },
          {
            "upTo": "103350",
            "rate": "0.22"
          },
          {
            "upTo": "197300",
            "rate": "0.24"
          },
          {
            "upTo": "250525",
            "rate": "0.32"
          },
          {
            "upTo": "626350",
            "rate": "0.35"
          },
          {
            "upTo": null,
            "rate": "0.37"
          }
        ],
        "mfj": [
          {
            "upTo": "23850",
            "rate": "0.10"
          },
          {
            "upTo": "96950",
            "rate": "0.12"
          },
          {
            "upTo": "206700",
            "rate": "0.22"
          },
          {
            "upTo": "394600",
            "rate": "0.24"
          },
          {
            "upTo": "501050",
            "rate": "0.32"
          },
          {
            "upTo": "751600",
            "rate": "0.35"
          },
          {
            "upTo": null,
            "rate": "0.37"
          }
        ],
        "mfs": [
          {
            "upTo": "11925",
            "rate": "0.10"
          },
          {
            "upTo": "48475",
            "rate": "0.12"
          },
          {
            "upTo": "103350",
            "rate": "0.22"
          },
          {
            "upTo": "197300",
            "rate": "0.24"
          },
          {
            "upTo": "250525",
            "rate": "0.32"
          },
          {
            "upTo": "375800",
            "rate": "0.35"
          },
          {
            "upTo": null,
            "rate": "0.37"
          }
        ],
        "hoh": [
          {
            "upTo": "17000",
            "rate": "0.10"
          },
          {
            "upTo": "64850",
            "rate": "0.12"
          },
          {
            "upTo": "103350",
            "rate": "0.22"
          },
          {
            "upTo": "197300",
            "rate": "0.24"
          },
          {
            "upTo": "250500",
            "rate": "0.32"
          },
          {
            "upTo": "626350",
            "rate": "0.35"
          },
          {
            "upTo": null,
            "rate": "0.37"
          }
        ]
      }
    },
    "standardDeduction": {
      "basic": {
        "single": "15750",
        "mfj": "31500",
        "mfs": "15750",
        "hoh": "23625"
      },
      "additionalAged": {
        "married": "1600",
        "unmarried": "2000"
      }
    },
    "seniorDeduction": {
      "perSenior": "6000",
      "eligible": {
        "single": true,
        "mfj": true,
        "mfs": false,
        "hoh": true
      },
      "phaseout": {
        "single": {
          "threshold": "75000",
          "rate": "0.06",
          "floor": "0"
        },
        "mfj": {
          "threshold": "150000",
          "rate": "0.06",
          "floor": "0"
        },
        "mfs": {
          "threshold": "75000",
          "rate": "0.06",
          "floor": "0"
        },
        "hoh": {
          "threshold": "75000",
          "rate": "0.06",
          "floor": "0"
        }
      }
    },
    "tipsDeduction": {
      "cap": {
        "single": "25000",
        "mfj": "25000",
        "mfs": "25000",
        "hoh": "25000"
      },
      "eligible": {
        "single": true,
        "mfj": true,
        "mfs": false,
        "hoh": true
      },
      "phaseout": {
        "single": {
          "threshold": "150000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        },
        "mfj": {
          "threshold": "300000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        },
        "mfs": {
          "threshold": "150000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        },
        "hoh": {
          "threshold": "150000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        }
      }
    },
    "overtimeDeduction": {
      "cap": {
        "single": "12500",
        "mfj": "25000",
        "mfs": "12500",
        "hoh": "12500"
      },
      "eligible": {
        "single": true,
        "mfj": true,
        "mfs": false,
        "hoh": true
      },
      "phaseout": {
        "single": {
          "threshold": "150000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        },
        "mfj": {
          "threshold": "300000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        },
        "mfs": {
          "threshold": "150000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        },
        "hoh": {
          "threshold": "150000",
          "rate": "0.1",
          "floor": "0",
          "reductionRounding": {
            "unit": "100",
            "mode": "down"
          }
        }
      }
    },
    "childTaxCredit": {
      "perChild": "2200",
      "perOtherDependent": "500",
      "phaseout": {
        "single": {
          "threshold": "200000",
          "rate": "0.05",
          "floor": "0",
          "reductionRounding": {
            "unit": "50",
            "mode": "up"
          }
        },
        "mfj": {
          "threshold": "400000",
          "rate": "0.05",
          "floor": "0",
          "reductionRounding": {
            "unit": "50",
            "mode": "up"
          }
        },
        "mfs": {
          "threshold": "200000",
          "rate": "0.05",
          "floor": "0",
          "reductionRounding": {
            "unit": "50",
            "mode": "up"
          }
        },
        "hoh": {
          "threshold": "200000",
          "rate": "0.05",
          "floor": "0",
          "reductionRounding": {
            "unit": "50",
            "mode": "up"
          }
        }
      },
      "refundable": {
        "perChildMax": "1700",
        "earnedIncomeThreshold": "2500",
        "rate": "0.15",
        "partIIBMinChildren": 3
      }
    },
    "fica": {
      "socialSecurity": {
        "rate": "0.062",
        "employerRate": "0.062",
        "wageBase": "176100"
      },
      "medicare": {
        "rate": "0.0145",
        "employerRate": "0.0145"
      },
      "additionalMedicare": {
        "rate": "0.009",
        "liabilityThreshold": {
          "single": "200000",
          "mfj": "250000",
          "mfs": "125000",
          "hoh": "200000"
        },
        "withholdingThreshold": "200000"
      }
    },
    "futa": {
      "netRate": "0.006",
      "wageBase": "7000"
    },
    "limits": {
      "electiveDeferral": "23500",
      "catchUp50": "7500",
      "catchUp60to63": "11250",
      "gov457Deferral": "23500",
      "hsaSelf": "4300",
      "hsaFamily": "8550",
      "hsaCatchUp55": "1000",
      "healthFsa": "3300",
      "dependentCareFsa": {
        "single": "5000",
        "mfj": "5000",
        "mfs": "2500",
        "hoh": "5000"
      }
    }
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "ctc-phaseout-step",
      "field": "params.childTaxCredit.phaseout",
      "description": "The child tax credit falls by $50 for each $1,000 (or part of $1,000) of MAGI over the threshold, so net pay can dip by up to $50 when MAGI crosses a $1,000 step."
    },
    {
      "id": "obbba-deduction-steps",
      "field": "params.tipsDeduction.phaseout",
      "description": "The tips and overtime deductions fall by $100 for each whole $1,000 of MAGI over $150,000 ($300,000 joint), so taxable income jumps by $100 at each $1,000 step."
    }
  ],
  "notModelled": [
    "Itemized deductions (the standard deduction is always used)",
    "Alternative minimum tax, net investment income tax, self-employment tax",
    "Earned income credit and other federal credits beyond the child tax credit / credit for other dependents",
    "Multiple jobs and a working spouse's wages (MFJ assumes one earner)",
    "Additional standard deduction for blindness",
    "Income other than wages; dependants' SSN/eligibility tests are assumed met",
    "W-4 withholding for the pay period (results are annual liability)"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-40.pdf",
      "title": "Rev. Proc. 2024-40 — items for taxable years beginning in 2025 (calendar year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-40.pdf",
      "title": "Rev. Proc. 2024-40 §3.01 Tax Rate Tables 1–4 (2025)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.irs.gov/pub/irs-pdf/i1040gi.pdf",
      "title": "2025 Form 1040 instructions — Tax Computation Worksheet / Tax Table",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.standardDeduction.basic",
      "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf",
      "title": "Rev. Proc. 2025-32 §2.08 — OBBBA §63(c)(7): 2025 basic standard deduction $15,750 / $23,625 / $31,500",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.standardDeduction.additionalAged",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-40.pdf",
      "title": "Rev. Proc. 2024-40 §3.15(3) — aged or blind $1,600 / $2,000 unmarried",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.seniorDeduction",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf",
      "title": "Schedule 1-A (2025) Part V — enhanced deduction for seniors",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.tipsDeduction",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf",
      "title": "Schedule 1-A (2025) Part II — qualified tips deduction",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.overtimeDeduction",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf",
      "title": "Schedule 1-A (2025) Part III — qualified overtime deduction",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.perChild",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf",
      "title": "Schedule 8812 (2025) line 5 — $2,200 per qualifying child (OBBBA)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.perChild",
      "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf",
      "title": "Rev. Proc. 2025-32 §2.03 — OBBBA $2,200 for 2025",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.perOtherDependent",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf",
      "title": "Schedule 8812 (2025) line 7 — $500",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.phaseout",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf",
      "title": "Schedule 8812 (2025) lines 9–11",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.refundable.perChildMax",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-40.pdf",
      "title": "Rev. Proc. 2024-40 §3.05 — refundable portion $1,700",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.refundable.earnedIncomeThreshold",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf",
      "title": "Schedule 8812 (2025) line 19 — $2,500",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.refundable.rate",
      "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf",
      "title": "Schedule 8812 (2025) line 20 — 15%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.childTaxCredit.refundable.partIIBMinChildren",
      "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf",
      "title": "Schedule 8812 instructions — Part II-B for three or more qualifying children",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.fica.socialSecurity",
      "url": "https://www.irs.gov/pub/irs-prior/p15--2025.pdf",
      "title": "Pub 15 (2025) — social security 6.2% each, wage base $176,100",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.fica.medicare",
      "url": "https://www.irs.gov/pub/irs-prior/p15--2025.pdf",
      "title": "Pub 15 (2025) — Medicare 1.45% each",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.fica.additionalMedicare.rate",
      "url": "https://www.irs.gov/pub/irs-prior/p15--2025.pdf",
      "title": "Pub 15 (2025) — Additional Medicare Tax 0.9%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.fica.additionalMedicare.withholdingThreshold",
      "url": "https://www.irs.gov/pub/irs-prior/p15--2025.pdf",
      "title": "Pub 15 (2025) — withhold on wages over $200,000",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.fica.additionalMedicare.liabilityThreshold",
      "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf",
      "title": "Instructions for Form 8959 (2025) — threshold amounts",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.futa",
      "url": "https://www.irs.gov/pub/irs-prior/p15--2025.pdf",
      "title": "Pub 15 (2025) section 14 — FUTA 0.6% after credit on first $7,000",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.electiveDeferral",
      "url": "https://www.irs.gov/pub/irs-drop/n-24-80.pdf",
      "title": "Notice 2024-80 — §402(g) $23,500",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.catchUp50",
      "url": "https://www.irs.gov/pub/irs-drop/n-24-80.pdf",
      "title": "Notice 2024-80 — §414(v)(2)(B)(i) $7,500",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.catchUp60to63",
      "url": "https://www.irs.gov/pub/irs-drop/n-24-80.pdf",
      "title": "Notice 2024-80 — ages 60–63 catch-up $11,250",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.gov457Deferral",
      "url": "https://www.irs.gov/pub/irs-drop/n-24-80.pdf",
      "title": "Notice 2024-80 — §457(e)(15) $23,500",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.hsaSelf",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-25.pdf",
      "title": "Rev. Proc. 2024-25 — HSA self-only $4,300",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.hsaFamily",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-25.pdf",
      "title": "Rev. Proc. 2024-25 — HSA family $8,550",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.hsaCatchUp55",
      "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf",
      "title": "Pub 969 — additional $1,000 at 55+",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.healthFsa",
      "url": "https://www.irs.gov/pub/irs-drop/rp-24-40.pdf",
      "title": "Rev. Proc. 2024-40 §3.16 — health FSA $3,300",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.limits.dependentCareFsa",
      "url": "https://www.irs.gov/pub/irs-prior/p15b--2025.pdf",
      "title": "Pub 15-B (2025) — dependent care assistance $5,000 ($2,500 MFS)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://www.irs.gov/pub/irs-prior/p15t--2025.pdf",
      "title": "Pub 15-T (2025) — rounding; MoneyOtter rounds each line to the cent (exact rate schedules, not the $50 Tax Table bands)",
      "retrieved": "2026-10-07"
    }
  ]
}