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Understanding taxes and your paycheck


Students analyze statements about taxes to better understand how taxes affect people’s paychecks.

Big idea

Understanding why and how taxes and other items are deducted from a worker’s paycheck is an important step toward gaining financial knowledge.

Essential questions

  • What are taxes and why do we pay them?
  • How do taxes affect the money a person receives in their paycheck?


  • Understand what taxes are deducted from our paychecks
  • Understand how these deductions affect our paychecks

What students will do

  • Determine which statements about taxes are true and false.
  • Participate in a class discussion about taxes and paychecks.

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Teacher guide


Student materials



Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.