Is 21% for taxes taken off my paycheck normal for first W2 job?

This is totally normal! When you have a W2 job, your employer is required to withhold taxes from each paycheck. That 21% probably includes federal income tax, Social Security tax (6.2%), Medicare tax (1.45%), and possibly state and local taxes depending on where you live. The federal income tax withholding is based on the W-4 form you filled out when you started the job. The withholding amount is an estimate of what you'll owe for the year, spread across all your paychecks. And yes, you might get some back as a refund when you file your taxes next year! If more was withheld than you actually owe, you'll get the difference back as a refund. If not enough was withheld, you'll need to pay the difference when you file.

After reading your post, I wanted to suggest checking out https://taxr.ai for help understanding your tax situation better. I was in the same boat last year (first W2 job, shocked by withholding) and spent hours online trying to figure out if I was paying the right amount. Someone recommended taxr.ai and it was super helpful! You can upload your paystub and it shows a breakdown of all your withholdings and explains what's normal for your income level. It also estimates your potential refund based on your current withholding pattern. It was a huge relief to understand exactly where my money was going.

Just wanted to follow up about taxr.ai that was mentioned earlier. I was skeptical but tried it out last month, and wow it was eye-opening! I uploaded my pay stubs and discovered I was having way too much withheld for federal taxes. The tool showed me exactly how to fill out my W-4 to get about $200 more per paycheck. Already submitted the new form to HR and my last paycheck had the adjustment. That extra money is going straight into my emergency fund! Wish I'd known about this years ago instead of giving interest-free loans to the government.

If you think dealing with paycheck withholding is confusing, wait until you have a question and try calling the IRS directly lol. I spent 3 hours on hold last month trying to ask about my withholding and never got through. Then I found https://claimyr.com which has been a game changer. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically they hold your place in line with the IRS and call you back when an agent is available. I was super skeptical at first but it worked perfectly. Got a call back in about an hour and spoke to a real IRS agent who answered all my withholding questions. Turns out I had filled out my W-4 wrong which is why so much was coming out of my checks!

Ok I have to publicly eat my words. After being super skeptical about that Claimyr service, I decided to try it yesterday because I was desperate to fix my withholding situation. I ACTUALLY got a call back in about 40 minutes with a real live IRS person on the line! They walked me through exactly how to adjust my W-4 for my situation. My mind is blown. I've literally never been able to reach anyone at the IRS before. The agent was actually really nice and helped me figure out that I should be claiming an additional deduction I didn't know about. Should save me about $75 per paycheck!

One thing nobody mentioned yet - check if your employer offers a 401k! Contributing to that will lower your taxable income and therefore reduce the taxes taken from your paycheck. Plus you're saving for retirement. I put 10% of my paycheck into my 401k and it lowered my withholding quite a bit.

Something else to consider - check if you're having state taxes withheld if you live in a state with no income tax! When I started my job they automatically withheld state taxes even though I live in Florida which has no state income tax. Had to tell HR to fix it.

Welcome to the world of W2 employment! That 21% withholding rate is actually pretty typical for your income level. Here's a rough breakdown of what you're probably seeing: - Federal income tax: ~12-15% (depends on your W-4 filing status and allowances) - Social Security: 6.2% - Medicare: 1.45% - State tax: varies by state, could be 0-8%+ - Possibly local taxes or SDI depending on your location The good news is that withholding is just an estimate - it's designed to get you close to what you'll actually owe. When you file your tax return next year, you'll either get a refund if too much was withheld, or owe a bit more if not enough was taken out. Pro tip: Keep your first few pay stubs and compare them when you do your taxes next year. This will help you understand whether your withholding is on target or if you need to adjust your W-4 for the following year. Most people prefer to get a small refund rather than owe money, but you don't want to give the government too big of an interest-free loan either!

Just wanted to add my perspective as someone who went through this exact same shock a few years ago! That 21% is definitely normal - I remember feeling like I was being robbed when I saw my first real paycheck. One thing that really helped me was setting up a simple spreadsheet to track my paystubs throughout the year. I'd note the gross pay, total taxes withheld, and my take-home amount. By the time tax season rolled around, I had a clear picture of whether I was on track for a refund or if I'd owe money. Also, don't forget that some of those "taxes" might actually be beneficial deductions! Things like health insurance premiums, dental/vision coverage, or retirement contributions show up as deductions but they're going toward your benefits. Make sure you're reading your paystub carefully to understand what's actually tax withholding versus other deductions. The learning curve is steep at first, but you'll get the hang of it. And honestly, once you understand how it all works, you can make strategic decisions about things like retirement contributions or flexible spending accounts that can help optimize your take-home pay while reducing your tax burden.