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If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500. Your income tax bill is will be approximately 3,000 dollars.

But your employer in addition has to pay 7.65% in the income he pays you for your Social Security and Medicare health insurance. Most employees are unaware using this extra tax money your employer is paying you. So, between you so your employer, the federal government takes 12-15.3% (= 2 times 7.65%) of your income. In case you are self-employed get yourself a new the whole 15.3%.

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