What tax would you pay on $20,000?

In the United States, a person earning $20,000 in wages typically owes little or no federal income tax after the standard deduction—about $470 for a single filer in 2025 (about $540 in 2024) and $0 if married filing jointly or head of household—though payroll taxes of roughly $1,530 still apply. The exact amount depends on your filing status, state, credits, and whether the $20,000 is wages, self-employment income, or investment income. Below, we break down the numbers, the assumptions, and how to estimate your own liability.

Why the answer varies

How much tax you pay on $20,000 depends on several factors: your country and state of residence, filing status, eligibility for credits, and the type of income. This article uses current U.S. rules for 2024–2025 to provide concrete estimates, then notes key differences for common scenarios.

United States: 2024–2025 federal income tax on $20,000 of wages

The following estimates assume: U.S. resident, only wage income of $20,000, no dependents unless noted, and taking the standard deduction. They show approximate federal income tax before refundable credits, and do not include state or local taxes.

• Single filer: 2025 standard deduction $15,300; taxable income ≈ $4,700; tax ≈ $470 at 10%. In 2024, with a $14,600 deduction, tax ≈ $540.
• Married filing jointly: 2025 standard deduction $30,600 (2024: $29,200); taxable income $0; federal income tax $0.
• Head of household: 2025 standard deduction $22,950 (2024: $21,900); taxable income $0; federal income tax $0.
• Eligible credits can reduce the tax further. For households with qualifying children, the Child Tax Credit and Earned Income Tax Credit (EITC) can eliminate tax and often produce a refund.

These results reflect the effect of the standard deduction, which shields most or all of $20,000 from federal income tax for many filers. Credits can reduce liability below zero (a refund), while payroll taxes still apply to wages.

Don’t forget payroll taxes on wages

Regardless of income tax, employee payroll taxes apply to wage income up to the Social Security wage base (and $20,000 is well below that cap). Here’s what that looks like on $20,000 of wages.

• Employee FICA: 6.2% Social Security + 1.45% Medicare = 7.65%. On $20,000, that’s about $1,530 withheld.
• Self-employment: If the $20,000 is net self-employment income, SE tax is about 15.3% on 92.35% of net earnings, roughly $2,826. Half of this is deductible in computing income tax.
• No Additional Medicare Tax applies at this income level (that surtax starts at much higher earnings).

For many low-income workers, payroll taxes are the largest federal bite from $20,000 of wages—often exceeding any income tax owed.

What about state and local income taxes?

State and local taxes vary widely. Some states impose no wage income tax; others levy modest amounts on $20,000, sometimes offset by credits. Here are the states with no state income tax on wages.

• Alaska
• Florida
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
• New Hampshire (no tax on wage income; taxes only interest/dividends)

If you live elsewhere, state liability at $20,000 is often small (sometimes zero after credits), but check your state’s brackets and low‑income credits. Local taxes may also apply in some cities.

How credits and income type can change your outcome

Some common variations can dramatically change what you owe—or whether you receive a refund. The points below highlight key scenarios for $20,000 of income.

• Earned Income Tax Credit (EITC): For workers with qualifying children, the EITC can be worth thousands and may exceed any income tax, yielding a refund. Childless workers may qualify for a small credit depending on earnings and age.
• Child Tax Credit (CTC): Up to $2,000 per qualifying child under 17 (with a refundable portion, subject to earnings and phase-ins/outs). At $20,000 of earned income, many families receive at least some refundable CTC.
• Only long-term capital gains/dividends: If the $20,000 is entirely long-term capital gains/qualified dividends, most single filers remain within the 0% capital gains bracket after the standard deduction—often resulting in $0 federal income tax.
• Social Security benefits: Taxability depends on “provisional income.” With only $20,000 of benefits and little other income, many retirees owe little or no federal income tax on benefits.
• Unemployment benefits: Generally taxable for federal purposes; some states exclude part or all. With a $20,000 benefit amount, the standard deduction still often eliminates most income tax for many filers.

Choosing the correct income category and claiming all eligible credits is essential; both can swing the result from a balance due to a refund.

Quick steps to estimate your own tax on $20,000

The following simple process helps you approximate your tax, then refine it with your specific credits and state rules.

1. Identify your filing status and whether the income is wages, self-employment, or investment income.
2. Subtract the standard deduction (2025: $15,300 single; $30,600 married filing jointly; $22,950 head of household). If the result is negative, federal income tax is $0 before credits.
3. Apply the 10% bracket to any remaining taxable income for a ballpark income tax estimate at this income level.
4. Add payroll taxes: 7.65% of wages if an employee; about 15.3% of 92.35% of net income if self-employed.
5. Account for credits (EITC, Child Tax Credit, education credits) and any state/local taxes or credits.

This framework won’t capture every nuance, but it reliably puts you in the right range and flags where credits can change the picture.

Key takeaways for $20,000 of income in the U.S.

For many filers, federal income tax on $20,000 of wages is small or zero after the standard deduction, especially for married or head-of-household filers and those eligible for refundable credits. Payroll taxes, however, still take about $1,530 from wage income (more if self-employed). State outcomes vary, with several states imposing no tax on wages.

Summary

If you earn $20,000 in the U.S., you’ll likely owe little to no federal income tax after the standard deduction—about $470 for a single filer in 2025 (about $540 in 2024) and $0 if married filing jointly or head of household—while payroll taxes on wages will be about $1,530. Credits (especially the EITC and Child Tax Credit) often reduce or eliminate income tax and can generate a refund. Your exact bill depends on your filing status, state, and whether the $20,000 is wages, self-employment earnings, or investment income.

How much do you pay in taxes if you win 20K?

How much are taxes on lottery winnings?

Tax rate	Taxable income bracket	Taxes owed
10%	$0 to $23,850.	10% of taxable income.
12%	$23,851 to $96,950.	$2,385 plus 12% of the amount over $23,850.
22%	$96,951 to $206,700.	$11,157 plus 22% of the amount over $96,950.
24%	$206,701 to $394,600.	$35,302 plus 24% of the amount over $206,700.

How much federal tax is taken from $20,000?

What is the average salary in United States of America? If you make $20,000 a year living in the region of California, United States of America, you will be taxed $2,687. That means that your net pay will be $17,313 per year, or $1,443 per month. Your average tax rate is 13.4% and your marginal tax rate is 21.7%.

How much tax do you pay on $20K?

The first $20,000 – you pay no tax at all, and that’s what we call the tax-free threshold. $20K to $45K – you’re looking at 21% tax, and this includes the Medicare levy that everyone pays. The private health insurance one is on top of this, if you don’t have private health cover.

How much is WV income tax?

West Virginia has a graduated state individual income tax, with rates ranging from 2.36 percent to 5.12 percent. There are also jurisdictions that collect local income taxes. West Virginia has a 6.5 percent corporate income tax rate.