You got your first job. Maybe it's lifeguarding, retail, food service, or camp counseling. You worked 30 hours at $14/hour and expected to see $420 in your bank account. Instead, you got $372. Welcome to taxes.
That missing $48 didn't disappear, it went to taxes. And once you understand where it goes, it's a lot less annoying.
What Got Taken Out
Federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%). Depending on your state, state income tax too. These deductions appear on your pay stub, which is a document you should absolutely learn to read (check out our guide: How to Read Your Pay Stub).
The Good News for Most Teen Workers
If you'll earn less than the standard deduction ($15,000 for 2026), you'll likely owe zero federal income tax. That means the federal income tax withheld from your paychecks will come back to you as a refund when you file a tax return next spring. Social Security and Medicare taxes don't come back. Those fund programs you'll use decades from now.
Should You File a W-4?
Yes. Your employer will have you fill one out on your first day. If you expect to earn under the standard deduction and this is your only job, you can claim exemption from federal income tax withholding by writing "Exempt" on Line 4c. This means more money in each paycheck and no refund to claim later. But if you're not sure, just let them withhold, it's the safer bet. You'll get the money back at tax time.
Try our Paycheck Calculator and enter your hourly rate and hours per week. The Hourly tab will show you approximately what each paycheck will look like after taxes. No surprises.
Three Things Every New Worker Should Know
Your time is worth something. Knowing your hourly rate and your real take-home rate helps you make better decisions about how you spend your time and money. If you earn $12.50/hour after taxes, that $50 purchase costs you 4 hours of work. Use our Hourly to Salary Calculator to see what your summer job rate adds up to over a full year.
Save something. Even $25 per paycheck adds up. After a summer of work, you could have $300–$500 set aside, for college, a car, or just the security of having money in the bank that you earned yourself.
This is the start, not the end. Your first job's pay rate is not your forever rate. Every skill you build, every responsibility you take on, every year of experience raises your value. The person earning $14/hour today will be earning far more in five years, if they keep learning and keep showing up.