The federal WITHHOLDING is 25%. That doesn't mean you will owe that much in tax for the year. It is only a payment toward your total tax bill. You may also make payments through your employment. Depending on your taxable income for the year, 25% may be too much and you'll get some if it back, or it may not be enough. The federal tax rate brackets are 10%, 12%, 22%, 24%, 32%, 35%, 37%.