Even though the fiscal cliff deal helped Americans avoid some tax hikes, workers will still pay more in taxes this year.
Lawmakers allowed the payroll tax cut to expire on Dec. 31, allowing the rate to revert back to its higher level. Now, 160 million workers will pay a tax of 6.2%, rather than 4.2%, on their first $113,700 in annual income.
A $50,000-a-year worker will see their paycheck shrink by $83 a month under the new rate, while someone making $100,000 in annual income will take a $167 monthly hit.
In addition, those making more than $450,000 a year, will see income tax rates spike -- from 35% to 39.6%. Other changes include fewer tax deductions for upper-income Americans and a jump in the estate tax for estates worth more than $5 million.
