Introduction If you’ve ever opened your paycheck and thought, “Why is my take-home pay less than what I earned?”, you’ve already met withholding Tax USA Explained 2026. For millions of Americans, withholding tax feels like a mystery. But here’s the truth: it’s not a punishment, and it’s not your employer pocketing extra money. It’s simply a pay-as-you-earn system where taxes are deducted throughout the year. In fact, the IRS reports that in 2023, the average refund was $2,812, and about 75% of taxpayers received a refund — proof that most people actually overpay taxes through withholding. In this guide, I’ll walk you through Withholding Tax USA Explained 2026 step by…