What should I do if my paystub shows incorrect tax withholdings?

If your paystub shows incorrect tax withholdings, contact your HR or payroll department immediately. They can review and correct the issue. You may also need to update your Form W-4 or state withholding forms to ensure proper deductions moving forward.

How often should I check my paystub for accuracy?

It’s a good idea to review your paystub every pay period. Regular checks help you catch errors early—like miscalculated hours, missing deductions, or incorrect tax rates—so they don’t compound over time or affect your year-end tax documents.

Can I use my paystub for proof of income on a loan or rental application?

Yes, paystubs are commonly accepted as proof of income by landlords, lenders, and government agencies. Make sure the paystub shows your full name, pay frequency, and recent income. Some may also request multiple recent stubs to verify consistency.

What is the difference between net pay and gross pay on a paystub?

Gross pay is your total earnings before any deductions. Net pay, sometimes called "take-home pay," is what remains after taxes and other deductions are subtracted. Your net pay reflects the actual amount deposited into your bank account.

Are paystub templates different for salaried and hourly employees?

Yes, paystub templates can vary slightly. Hourly paystubs usually show hours worked and hourly rate, while salaried paystubs list the fixed salary amount. However, tax deductions and benefits info typically appear in a similar structure for both.

How Taxes Appear on Your Paystub (Federal, State, and Local)

Last updated July 1, 2025

Your paystub isn’t just a record of your earnings—it’s a detailed snapshot of how much you’ve paid in taxes so far. If you’ve ever wondered where exactly federal, state, and local taxes show up on your paystub, this guide will walk you through each line item. Using a sample FormPros paystub, we’ll show you how to spot these deductions quickly and understand what they represent.

Federal Income Tax

Federal income tax is one of the most common deductions you’ll see on your paystub. It typically appears under a section labeled “Deductions” or “Taxes”, and may be listed in a variety of ways, including:

Federal Income Tax
Fed Tax
FIT (Federal Income Tax Withholding)

Alongside the label, you’ll generally see two numbers:

Current Withholding – the amount taken from your most recent paycheck
Year-To-Date (YTD) – the total amount withheld since the beginning of the year

These amounts reflect how much the IRS has collected through automatic payroll withholding. This “pay-as-you-go” system helps ensure you’re contributing toward your annual tax liability gradually throughout the year.

💡 Tip: The amount withheld depends on your Form W-4 settings, including your filing status, number of dependents, and whether you’ve requested any additional withholding. If the amount looks off, your W-4 may need updating.

Social Security and Medicare taxes—collectively known as FICA taxes—are federally mandated deductions that help fund government benefit programs. These taxes are typically displayed as separate line items under the “Deductions”, “Taxes”, or “Statutory Deductions” section of your paystub.

You’ll usually see them listed as:

FICA – Social Security
FICA – Medicare
Sometimes simply: Social Security Tax and Medicare Tax

Each line will show:

The amount withheld for the current pay period
The YTD (Year-To-Date) total, showing how much has been withheld so far this year

These deductions are automatically calculated based on your earnings. Social Security is typically withheld up to a certain annual wage limit, while Medicare continues regardless of income level (with an additional tax for high earners).

💡 Tip: If you notice these line items missing or miscalculated, it could be a red flag—especially if you’re classified as an employee and not self-employed.

State Income Tax

If you live or work in a state that imposes income tax, you’ll likely see a State Income Tax deduction on your paystub. This appears in the same “Deductions” or “Taxes” section as federal and FICA taxes.

Common label variations include:

State Income Tax
STATE TAX
Abbreviations like CA TAX, NY Withholding, or IL SIT

Like other deductions, it usually includes:

The current withholding amount
A YTD (Year-To-Date) total

Each state has its own withholding rules and rates, often based on the information you provide on a state-specific version of Form W-4 (or equivalent). Some states also deduct for disability insurance or other programs, which may appear as separate line items.

💡 Tip: If you work in a state without income tax (like Florida, Texas, or Washington), you won’t see a state income tax deduction on your paystub at all.

Local Taxes

In certain areas, cities, counties, or municipalities may impose their own income taxes in addition to federal and state withholding. If you’re subject to local taxes, they’ll appear as a separate line item under the “Deductions” or “Taxes” section of your paystub—typically beneath federal and state taxes.

Common labels include:

Local Tax
City Tax or Municipal Tax
The name or abbreviation of the locality (e.g., NYC Tax, PHL Wage Tax, SD District Tax)

Like other taxes, you’ll usually see:

A current withholding amount
A YTD total

Not all paystubs will include local taxes—these are only present if you live or work in a locality that requires them. If applicable, they may be calculated based on your home address, work location, or both.

💡 Tip: Some local taxes have unusual names or codes, so if you’re unsure what a deduction refers to, ask your payroll provider or employer for clarification.

Final Thoughts

Reading a paystub doesn’t have to feel like decoding a puzzle. Once you know what to look for, the breakdown of federal, state, and local taxes becomes clear—and crucial for keeping your finances in check.

If the example paystub images above looked clean, clear, and easy to understand—you’re in luck. Those are FormPros paystubs, designed to be simple, professional, and fully compliant with payroll standards. Use our paystub generator to create yours today!

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