Federal Income Tax (FIT) — Payroll Definition
Tax withheld from your paycheck based on your W-4 elections and IRS tax brackets.
Tax withheld from your paycheck based on your W-4 elections and IRS tax brackets.
Federal Income Tax (FIT) is the tax your employer withholds from each paycheck based on the information you provided on Form W-4. The amount withheld depends on your filing status, number of dependents, additional withholding, and the current IRS tax brackets (10% to 37% for 2026). Unlike FICA, the amount withheld is an estimate — your actual tax liability is reconciled when you file your annual tax return. If too much was withheld, you get a refund; too little means you owe.
Common pay stub code: FWT / FIT / FED