When it comes to calculating take-home pay, understanding the various deductions from your paycheck is crucial.
In the state of Florida, the taxation system differs from many other states.
One of the most significant advantages for residents of Florida is the absence of a state income tax.
Unlike many other states, Florida does not levy a personal income tax on its residents.
This means that individuals do not have to pay a portion of their earnings to the state government, resulting in higher take-home pay.
While Florida may not impose a state income tax, employees are still subject to federal income tax.
The federal income tax is a progressive tax system, which means that individuals with higher incomes pay a higher percentage of their earnings in taxes.
Regardless of the state you reside in, most employees in the United States are subject to Social Security and Medicare taxes, commonly referred to as FICA (Federal Insurance Contributions Act) taxes.
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