advertisement
advertisement

Treasury says 90% of workers will see increase in take-home pay starting next month

Treasury says 90% of workers will see increase in take-home pay starting next month
[Photo: NeONBRAND/Unsplash]

The Treasury Department released its withholding tables for the new tax laws on Thursday, which lay out how much tax employers should withhold from employee paychecks. Treasury Secretary Steven Mnuchin said it is expected that about 90% of workers will see an increase in their take-home pay, reports CNBC.

That’s good news for many working people, but unfortunately the tax cuts expire for individual workers in 2025, at which time workers will see their employee taxes rise and see less take-home pay in their bank accounts. That’s unlike the massive tax cuts for corporations, which are permanent.

How much extra you take home will depend on your income bracket. An analysis by Yahoo Finance found that, for instance, a person earning $40,000 a year who is paid twice a month could see an additional $31 in their take-home pay, while a person earning $100,000 might see an additional $124. That’s a simplified analysis, though, and doesn’t take into account individual tax situations like pre-tax deductions. You can view the full chart here.

You can also view the new IRS tables in full here.

advertisement