What Is Tax Withholding?
Tax withholding is income tax that an employer deducts from an employee's pay and sends to the government throughout the year. In the United States, the amount of federal income tax withheld is based on the employee's Form W-4 and IRS withholding tables. Withholding is a prepayment; the final tax is settled on the annual return.
Refund or Balance Due
If more is withheld than the final tax owed, the difference is refunded; if less, the taxpayer owes the balance when filing.
🧮 Calculate It Yourself
Put Tax Withholding into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Taxes Terms
- Additional Medicare Tax
- Adjusted Gross Income (AGI)
- Alternative Minimum Tax (AMT)
- Capital Gains Tax
- Capital Loss
- Child Tax Credit
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.