Tip: This Federal Budget calculation for an individual with an annual salary of $ 45,000.00 per year. The Federal Income Tax calculation of $3,640.50 is then computed against the 2023 Federal Budget to provide a breakdown of your Federal income tax in terms of how it is allocated against key financial categories as determined by Congress.
Your Federal Income Tax was calculated by factoring your annual income of $ 45,000.00 and factoring in standard non-refundable tax credits and deductions for a single filer.
These calculations first compute your taxable income (from a Federal perspective). Your taxable income is then calculated using the 2023 Federal Tax Tables, this calculation is shown below for your reference.
Tip: California is used as the default State for Federal Budget allocation based on Federal Income Tax calculation, you can choose an alternate State using the 2023 State Federal Budget Income Tax calculator.
An individual tax payer living in California filing as single for the 2023 tax year would pay $3,640.50 in Federal tax. The Federal tax collected would then be split amongst the relevant financial categories below. The percentages shown can fluctuate each year, particularly the Discretionary spending elements as they are determined each year by Congress during the annual appropriations process.
|Budget Category||Discretionary Spending |
|Mandatory Spending |
|Combined (where applicable)||Interest on Federal Debt |
|Transportation||$25.21 (2.36%)||$53.88 (2.29%)||$79.09||$219.52 (100%)|
|Veterans Benefits||$62.59 (5.86%)||$87.29 (3.71%)||$149.88|
|Food and Agriculture||$12.60 (1.18%)||$112.23 (4.77%)||$124.84|
|Medical and Health||$63.34 (5.93%)||$903.50 (38.4%)||$966.84|
|Social Security, Unemployment and Labor||$27.88 (2.61%)||$1,142.55 (48.56%)||$1,170.42|
|Housing and Community||$60.67 (5.68%)|
|Energy and Environment||$37.49 (3.51%)|
|International Affairs||$39.20 (3.67%)|
The split down and calculation of Federal Budget spend in relation to Federal Income Tax returns may seem a little odd at first so let's look at an example using the Veterans Benefit financial category:.
For arguments sake, let's say you pay $100.00 exactly in Federal tax.
The results show that you will pay $3,640.50 in Federal Tax for the 2023 tax year. The pie charts then illustrate how your tax is first split into Mandatory, Discretionary and Interest on Debt and then split down into specific financial categories, the percentages of which are determined by Congress for 2023 and updated annually.
|Tax Rate||Threshold||Tax Due in Band|
|10%||$0.00 to $10,275.00||$1,027.50|
|12%||$10,275.00 to $41,775.00||$2,613.00|
|Federal Income Tax Total from all Rates||$3,640.50|
You can see a full Federal and State Income Tax breakdown and explanation of how we calculated the Federal tax here: Federal and State Tax Calculation for $ 45,000.00 Salary in 2023
You can use the Tax Calculators to compare the Federal Tax in this tax calculation to tax calculations and income tax deductions in other countries to see how much income tax the United States tax payer pays in comparison to tax payers in other countries