How Much Should I Take Out for Monthly Taxes?

Save
Accountants can help you determine your taxes.
Accountants can help you determine your taxes. (Image: TAX TIME image by brelsbil from Fotolia.com)

It Depends on What Job You Have

Tax rates and compulsory deductions differ depending on your type of employment. According to WorldSalaries.org, the average monthly salary of a general physician in 2005 was $11,698, where monthly taxes accounted for 30 percent of income. By comparison, a postman's average monthly salary was $3,040, 20 percent of which amounted to compulsory deductions.

There are specific tax forms for different kinds of employment.
There are specific tax forms for different kinds of employment. (Image: tax forms image by Chad McDermott from Fotolia.com)

Deductions Are Usually High

No matter what your type of employment, the monthly tax deductions are usually high. In addition, various taxes are taken out of your paycheck. Federal income tax, Social Security tax, Medicare tax and state income tax are all included in deductions.

Monthly taxes can be high.
Monthly taxes can be high. (Image: stack of cash image by jimcox40 from Fotolia.com)

Bottom Line

On average, you should take out between one-fifth and one-third of your monthly salary and devote it to taxes. While the type of employment you have determines your tax bracket, wages are subject across the board, every month, to a variety of taxes. The number of children your household has will be a factor as well.

In 2005, the average construction worker made just over $3,000 per month.
In 2005, the average construction worker made just over $3,000 per month. (Image: construction,worker, image by Greg Pickens from Fotolia.com)

Related Searches

References

Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!