Working two jobs
How second job tax works in 2026
When you take a second job, your combined income is taxed on a single return. The second job's income sits on top of your first job's earnings, so it starts in the bracket where your primary income left off. If your first job puts you at the top of the 12% bracket, every dollar from the second job is taxed at 22% or higher — plus FICA.
The marginal rate trap
Each employer withholds as if theirs is your only job. Both apply the standard deduction and lower brackets independently, which means you are under-withheld. At filing time, you owe the difference. To fix this, check the "Multiple jobs" box on Step 2 of your W-4, or use the IRS Tax Withholding Estimator for a more precise adjustment.
| Job 1 income | Job 2 income | Marginal bracket | Cents kept / $1 (fed+FICA) |
|---|---|---|---|
| $40,000 | $15,000 | 12% | ~80.4c |
| $55,000 | $20,000 | 22% | ~70.4c |
| $80,000 | $25,000 | 22% | ~70.4c |
| $100,000 | $30,000 | 24% | ~68.4c |
Single filer, 2026 brackets. "Cents kept" = 1 minus marginal rate minus 7.65% FICA. State tax reduces further.
Is a second job worth it after taxes?
Even at the 22% bracket with FICA and state tax, you keep at least 60-65 cents of every dollar. The real cost of a second job is time, not taxes. There is never a scenario where earning more money makes you worse off after taxes — marginal rates only apply to the additional dollars, not retroactively to your entire income. To see the full picture, run your combined income through our paycheck calculator or bracket calculator.
Questions
Second job tax calculator FAQ
How is a second job taxed?
A second job is taxed at your marginal rate — the bracket your combined income falls into. Your second employer withholds based on your W-4, but each employer does not know about the other job. Without adjusting your W-4, you may be under-withheld because each job withholds as if it is your only income source. At filing, all income is combined and taxed on a single return.
Will a second job push me into a higher tax bracket?
Possibly, but only the income above each bracket threshold is taxed at the higher rate. If your first job puts you in the 22% bracket and the second job pushes some income into the 24% bracket, only the dollars above the 24% threshold are taxed at 24%. Your overall effective rate rises gradually, not in a cliff.
How should I fill out W-4 for two jobs?
The IRS recommends using Step 2 of the W-4 form. You can either check the box for multiple jobs (which increases withholding) or use the IRS Tax Withholding Estimator online for a more precise calculation. The higher-paying job should claim your allowances, and the lower-paying job should withhold at the higher single rate.
Do I pay FICA on both jobs?
Yes. Each employer withholds Social Security (6.2%) and Medicare (1.45%) independently. If your combined wages from all employers exceed the $184,500 Social Security wage base in 2026, you have overpaid SS tax — you claim the excess as a credit on your tax return. Medicare has no wage base cap and applies to all earnings.
How much of a second job income do I actually keep?
Typically 55% to 72% of second-job income, depending on your marginal bracket and state. A worker in the 22% federal bracket with 5% state tax and 7.65% FICA keeps about 65 cents of every additional dollar earned. Higher earners in the 32% bracket keep less. The calculator shows your exact rate.
- Sources: IRS Rev. Proc. 2025-32 (2026 brackets) · SSA 2026 wage base $184,500 · IRS Form W-4 instructions (Step 2, multiple jobs).
- 🔄 Last updated July 25, 2026 · Tax year 2026
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