You may pay more in this tax than income taxes

Many people complain about paying too much in federal income taxes. But it turns out that a majority of U.S. tax filers actually pay less in income taxes than they do in payroll taxes, which fund Social Security and Medicare.

That’s according to Roberton Williams, a senior fellow at the Tax Policy Center.

Williams estimates that this year close to two-thirds of all households (62.3%) will end up owing more in payroll taxes than federal income taxes. Generally speaking, the less you make, the more likely you are to be in this group.

For Social Security the payroll tax amounts to 12.4% of your first $118,500 in wages. Half of that is deducted directly from your paycheck and half is paid by your employer. The Medicare tax, meanwhile, is 2.9% on all your wages — again with your employer picking up half the tab.

 

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source: http://money.cnn.com/2016/09/06/pf/taxes/income-taxes-payroll-taxes/index.html

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