Table of Contents
Federal Withholding Tables 2026 – As of December 27, 2025, the IRS has released Publication 15-T (2026), Federal Income Tax Withholding Methods, providing the official tables and instructions for calculating federal income tax withholding from wages, pensions, annuities, and other payments in 2026. These tables reflect key legislative updates from Public Law 119-21, the One Big Beautiful Bill Act (OBBBA), which permanently extends individual tax rates from the 2017 Tax Cuts and Jobs Act (TCJA), maintains the increased standard deduction, eliminates personal exemptions, and introduces new deductions for qualified tips and overtime pay.
Employers must use these updated tables starting with 2026 wage payments to ensure accurate withholding, compliance, and proper take-home pay for employees. This guide summarizes the key elements, methods, and changes based on official IRS sources.
Major Updates for 2026 Withholding
The OBBBA drives several changes incorporated into the 2026 tables:
- Permanent TCJA Extensions: Individual tax rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) and the doubled standard deduction remain in place, with inflation adjustments preventing bracket creep.
- New Deductions for Tips and Overtime: Employees can deduct up to $25,000 in qualified tips (2025–2028) and up to $12,500 ($25,000 married filing jointly) in qualified overtime pay. Employees report estimated amounts in Form W-4 Step 4(b) to reduce withholding upfront.
- Form W-4 and W-4P Changes: A new checkbox for exemption from withholding replaces the “Exempt” notation. Similar updates apply to Form W-4P for pensions/annuities.
- Inflation-Adjusted Thresholds: Aligned with 2026 tax brackets (e.g., 37% rate starts at $640,600 for singles, $768,700 for married filing jointly).
- Nonresident Alien Adjustments: Updated add-on amounts for wages (e.g., Table 1/Table 2 in Pub. 15-T).
Employers should update payroll systems immediately and encourage employees to use the IRS Tax Withholding Estimator for accurate Form W-4 completion.
Two Primary Withholding Methods in Publication 15-T (2026)
1. Percentage Method (Automated Payroll Systems)
This method annualizes wages, applies progressive rates after adjustments (including standard deduction equivalents and Form W-4 entries), and prorates by pay period. Use STANDARD schedules unless Step 2 is checked (multiple jobs).
Key steps (Worksheet 1A):
- Annualize pay.
- Adjust for Step 4(a) other income, Step 4(b) deductions (including new tip/overtime amounts), and subtract standard deduction.
- Apply rates from tables.
- Prorate, subtract Step 3 credits, add Step 4(c) extra withholding.
Excerpt: STANDARD Withholding Rate Schedules (Annual Basis – Single or Married Filing Separately)
(Full tables in Pub. 15-T cover all periods and statuses.)
| Taxable Income At Least | But Less Than | Tax Rate | Tentative Withholding Plus % of Excess Over |
|---|---|---|---|
| $0 | $12,400 | 10% | 10% of amount over $0 |
| $12,400 | $50,400 | 12% | $1,240 + 12% over $12,400 |
| $50,400 | $105,700 | 22% | $5,800 + 22% over $50,400 |
| $105,700 | $201,775 | 24% | $17,966 + 24% over $105,700 |
| $201,775 | $256,225 | 32% | $41,024 + 32% over $201,775 |
| $256,225 | $640,600 | 35% | $58,448 + 35% over $256,225 |
| $640,600+ | — | 37% | $192,979.25 + 37% over $640,600 |
(Prorate for pay frequency using Pub. 15-T Table 3. Alternative schedules apply if Step 2 checked.)
2. Wage Bracket Method (Manual Payroll Systems)
For lower wages and manual calculations, use direct lookup tables by pay period, filing status, and adjustments. Switch to Percentage Method if wages exceed limits.
Excerpt: Weekly Payroll Period – Married Filing Jointly (STANDARD, Forms W-4 2020 or Later)
(Full multi-page tables in Pub. 15-T Section 2.)
| Adjusted Wage At Least | But Less Than | Withholding Amount (Tentative) |
|---|---|---|
| $0 | $310 | $0 |
| … | … | … |
| $1,570 | $1,590 | $34 |
| $2,192 | $2,212 | $95 |
(Adjust for Steps 3/4; subtract credits, add extra withholding.)
Pre-2020 Forms W-4 use allowance-based tables in Sections 3/5.
Step-by-Step Guide to Using 2026 Tables
- Collect current Form W-4 (2026 version preferred). Default to single/no adjustments if missing.
- Select method: Percentage (automated/high wages) or Wage Bracket (manual/low wages).
- Determine pay period and filing status.
- Adjust wages per Form W-4 (Steps 2–4, including new deductions).
- Lookup/calculate tentative withholding.
- Apply final adjustments (credits, extra withholding).
- Round consistently to nearest dollar.
Special cases: Pensions use Worksheet 1B; supplemental wages at flat rates (22% or 37%); nonresident aliens add specific amounts.
Impact of OBBBA and Comparison to Prior Years
The OBBBA ensures continuity from TCJA while adding worker benefits via tip/overtime deductions, potentially lowering withholding for eligible employees. Brackets shift upward with inflation (e.g., top bracket higher than 2025 equivalents), and new Form checkboxes simplify exemptions.
Social Security (6.2%) and Medicare (1.45%) rates unchanged; wage base limits apply separately.
Where to Find Full 2026 Tables and Resources?
Download Publication 15-T (2026) PDF on our article about IRS Publication 15-T 2026.
Use IRS Tax Withholding Estimator: IRS.gov/W4app
For broader guidance: Publication 15 (Circular E) at IRS.gov/Pub15
Accurate withholding avoids penalties and supports employee financial planning. Payroll software vendors should have 2026 updates available. Consult IRS.gov or a tax professional for complex cases, as rules may evolve. Search terms like “2026 federal withholding tables IRS” or “Publication 15-T 2026” lead directly to official sources.