What is FICA OASDI on My Paycheck?
August 25, 2026
No Comments
What is FICA OASDI on My Paycheck What Is FICA OASDI on My Paycheck? (2026 Guide) | ADP Salary Calculator Pay Stub Glossary · Updated
⚡ Quick Answers
SIT stands for
State Income Tax
Can you opt out?
No, unless you qualify for an exemption
States with no SIT on wages
9 states (see below)
Based on
The state where you live or work
On an ADP pay stub, SIT stands for State Income Tax (sometimes also labeled SWT for State Withholding Tax, or Res. SIT for resident state income tax). It’s the mandatory amount your employer deducts from your gross pay and sends to your state’s tax department on your behalf.
Unlike some deductions, SIT isn’t optional — with narrow exceptions covered below, you can’t choose to skip it. This guide covers where it comes from, why some pay stubs don’t have it at all, and how to check that the amount looks right. For the rest of your pay stub’s tax lines, see our FIT, FICA, and YTD glossary.
1 The Basics
What Is SIT?
State income tax (SIT) is a direct tax levied by individual states on income earned by their residents, and often by nonresidents who earn income sourced within that state. Like federal income tax, it’s a self-assessed tax — you technically owe it based on your annual return — but your employer withholds an estimate of it from each paycheck throughout the year so you’re not stuck with the full amount due at once.
- Revenue from SIT funds state-level public services: education, infrastructure, public safety, and social programs
- It’s a mandatory deduction — you generally can’t opt out unless you meet a specific exemption
- It’s completely separate from federal income tax and FICA (Social Security/Medicare), which go to different agencies entirely
2 Which State Applies
Location Matters: Which State’s SIT Applies
Your SIT is generally determined by the state where you live or work, not necessarily where your employer’s headquarters is located. On your pay stub, it often appears with a two-letter state prefix or suffix code — for example, “CA SIT” for California or “NY SIT” for New York — so you can quickly identify which state’s tax is being withheld.
💡 If you moved or changed jobs mid-year: You may see two different state SIT lines across different pay stubs from the same calendar year, each reflecting the period you actually lived or worked in that state.
3 States Without SIT
States With No SIT on Wages
Not every state taxes wage income. If you live and work exclusively in one of these states, your SIT deduction will be zero or simply absent from your pay stub entirely:
| State | Wage Income Tax Status |
|---|---|
| Alaska | No state income tax |
| Florida | No state income tax |
| Nevada | No state income tax |
| New Hampshire | No tax on wage income |
| South Dakota | No state income tax |
| Tennessee | No state income tax |
| Texas | No state income tax |
| Washington | No tax on wages (taxes only certain capital gains) |
| Wyoming | No state income tax |
Every other state, plus the District of Columbia, withholds SIT from wages in some form — whether a flat rate or a progressive bracket system.
4 How It’s Calculated
How Your SIT Amount Is Calculated
The amount withheld depends on two things: your gross earnings for the pay period, and the filing status, allowances, or exemptions you claimed on your state’s withholding form — a state-level equivalent of the federal Form W-4, sometimes with its own name (for example, California’s DE 4).
| Tax Structure | How It Works |
|---|---|
| Flat tax | One consistent percentage applies to all taxable income, regardless of how much you earn |
| Progressive tax | The tax rate increases as your income rises, similar in structure to the federal system |
Some states also offer reduced withholding for dependents, or state-specific tax credits similar to the federal Earned Income Tax Credit — if applicable, these are typically claimed on your state withholding form, the same way federal adjustments are claimed on your W-4.
5 SIT vs. SUI vs. SDI
SIT vs. SUI vs. SDI
These three abbreviations often appear near each other on a pay stub and are easy to mix up, but they fund different things:
| Abbreviation | Full Name | Who Pays It | What It Funds |
|---|---|---|---|
| SIT | State Income Tax | Employee (withheld from wages) | General state programs and services |
| SUI | State Unemployment Insurance | Usually the employer only (a few states also require an employee share) | Unemployment benefits for eligible workers who lose their job |
| SDI | State Disability Insurance | Employee, in states that have it (e.g., California, New York, New Jersey) | Short-term disability benefits for eligible workers |
If you see all three on the same pay stub, that’s expected in states like California — they’re separate line items funding separate programs, not duplicate charges.
6 State Codes
Common State Codes on a Pay Stub
CA SITCalifornia State Income Tax
Progressive
Calculated using California’s progressive tax brackets, separate from federal tax and California SDI. Withheld funds are submitted to the California Franchise Tax Board.
NY SIT / NYSITNew York State Income Tax
Progressive
Deducted to fund state-level public programs. If you live or work in New York City or Yonkers, you may see an additional local tax line alongside your state SIT.
TX SITWTexas — No SIT
No Wage Tax
If you live and work exclusively in Texas, you should not see an SIT deduction on your pay stub at all, since Texas doesn’t tax wage income.
7 Multi-State Work
Working Across State Lines: Reciprocity Agreements
If you live in one state but work in another, things can get more complex. Some neighboring states have reciprocity agreements, which exempt employees from paying income tax in both states — instead, only your resident state’s SIT is typically withheld.
- If no reciprocity agreement exists between your work state and resident state, you may need to have additional tax withheld for your resident state, or settle the difference when you file your tax return
- Reciprocity agreements vary by specific state pairing — not every neighboring state combination has one
- If you’re unsure whether your states have a reciprocity agreement, your state’s Department of Revenue website will confirm, or your payroll/HR department can typically tell you
8 Exemptions
Can You Be Exempt From SIT?
In limited circumstances, yes. Your state withholding form provides instructions for claiming an SIT exemption — typically available if you had no state tax liability in the prior year and expect none in the current year, similar in concept to claiming “Exempt” on a federal W-4.
⚠️ You’re still responsible if you don’t actually qualify: If you certify an exemption on your withholding form but it turns out you didn’t actually qualify, you remain responsible for paying any resulting state tax liability when you file — the exemption just changes what’s withheld during the year, not what you ultimately owe.
9 Worked Example
Worked Example
Scenario: An employee earning $2,200 gross on a biweekly paycheck, working in a state with a flat 4% state income tax rate.
💰 Sample SIT Calculation
Gross Pay$2,200.00
SIT (flat 4%)−$88.00
SIT — YTD (period 10 of 26)$880.00
In a progressive-tax state instead of a flat-tax state, this same employee’s SIT would be calculated using tiered brackets rather than one flat percentage — meaning the exact dollar amount would depend on where their income falls within that state’s specific bracket structure.
10 Verification
Checking If Your SIT Looks Right
- Confirm the state code shown (e.g., “CA SIT”) matches the state you actually live or work in
- Check your state’s current income tax rate or bracket structure against the withheld amount
- If you recently moved or changed work locations, confirm payroll has your correct current state on file
- If you work across state lines, confirm whether a reciprocity agreement applies to your specific situation
- If something still looks off, ask your payroll or HR department to walk through the calculation — they can see the exact state withholding form on file for you
Frequently Asked Questions
SIT on a Pay Stub — FAQs
What does SIT stand for on a pay stub?
SIT stands for State Income Tax. It’s the mandatory amount your employer deducts from your gross pay and sends to your state’s tax department on your behalf, sometimes also labeled “SWT” for State Withholding Tax.
Why is there no SIT deduction on my pay stub?
If you live and work exclusively in a state with no earned wage income tax — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming — you won’t see an SIT deduction, since there’s no state income tax to withhold.
What is the difference between SIT and SUI on a pay stub?
SIT (State Income Tax) is withheld from employee wages and funds general state programs. SUI (State Unemployment Insurance) is usually paid entirely by the employer, not deducted from employee pay, and specifically funds unemployment benefits — though a small number of states require an employee-paid SUI or SDI contribution as well.
How is my SIT withholding amount calculated?
SIT is calculated based on your gross earnings for the pay period and the filing status, allowances, or exemptions you claimed on your state withholding form (often similar to the federal Form W-4). States with a flat tax apply one consistent rate; states with a progressive system apply increasing rates as income rises.
Why do I see two different SIT amounts on stubs from two states?
If you worked in more than one state during the year — due to a job change, relocation, or remote work across a state line — each state’s SIT is calculated separately using that state’s own rates and rules, so the two amounts are rarely the same even at similar income levels.
Can I choose not to have SIT withheld?
Generally no. SIT is a mandatory deduction in states that have it, and you cannot opt out unless you meet a specific exemption criteria defined by your state, similar to claiming “Exempt” on a federal W-4.
Do I need to do anything if I move to a different state during the year?
Yes — notify your HR or payroll department promptly so they can update your state withholding on file. Depending on the states involved, you may need to complete a new state withholding form for your new state of residence or work location.
See How State Tax Affects Your Paycheck
Estimate your take-home pay including state tax withholding with our free ADP Salary Calculator.
Try the Free Calculator →
