Federal Withholding and the 2026 W-4, Explained
Tax year 2026 · Last updated · Sources listed at the end
Federal income tax is usually the biggest deduction on a Georgia paycheck. Here is how payroll turns your 2026 Form W-4 into a dollar amount, with the IRS tables and worked examples for each step.
How your employer calculates it
Payroll systems follow IRS Publication 15-T, Worksheet 1A, for anyone with a 2020-or-later Form W-4. In plain terms (Pub. 15-T 2026):
- Annualize. Taxable wages for the paycheck are multiplied by the number of pay periods (52, 26, 24 or 12).
- Adjust. Add Step 4(a) other income. Subtract Step 4(b) deductions, plus $8,600 (or $12,900 if married filing jointly) unless the Step 2 box is checked.
- Look up the tax. Apply the annual percentage table for your filing status (standard table, or the Step 2 checkbox table).
- Back to one paycheck. Divide by the number of pay periods, subtract Step 3 credits divided by the same number, and never go below zero.
- Add Step 4(c) extra withholding.
The tables already build in the 2026 standard deduction. For a single filer, the $8,600 adjustment plus the table's $7,500 zero-rate band equals $16,100, which is exactly the 2026 standard deduction for single filers in Revenue Procedure 2025-32. For married filing jointly, $12,900 + $19,300 = $32,200, the joint standard deduction.
The 2026 tables
| Adjusted annual wage from | To | Rate |
|---|---|---|
| $0 | $7,500 | 0% |
| $7,500 | $19,900 | 10% |
| $19,900 | $57,900 | 12% |
| $57,900 | $113,200 | 22% |
| $113,200 | $209,275 | 24% |
| $209,275 | $263,725 | 32% |
| $263,725 | $648,100 | 35% |
| $648,100 | and up | 37% |
| Adjusted annual wage from | To | Rate |
|---|---|---|
| $0 | $19,300 | 0% |
| $19,300 | $44,100 | 10% |
| $44,100 | $120,100 | 12% |
| $120,100 | $230,700 | 22% |
| $230,700 | $422,850 | 24% |
| $422,850 | $531,750 | 32% |
| $531,750 | $788,000 | 35% |
| $788,000 | and up | 37% |
| Adjusted annual wage from | To | Rate |
|---|---|---|
| $0 | $15,550 | 0% |
| $15,550 | $33,250 | 10% |
| $33,250 | $83,000 | 12% |
| $83,000 | $121,250 | 22% |
| $121,250 | $217,300 | 24% |
| $217,300 | $271,750 | 32% |
| $271,750 | $656,150 | 35% |
| $656,150 | and up | 37% |
These are the brackets for the adjusted annual wage from step 2 above, not for gross salary. For a single filer with no deductions, the 12% rate starts at about $28,500 of salary, 22% at about $66,500, and 24% at about $121,800.
What each W-4 step does to your paycheck
Take a single filer earning $60,000, paid biweekly. With a plain W-4 (Step 1 only), federal withholding is $193.08 per paycheck.
- Step 1(c), filing status selects the table. Head of household and married filing jointly have wider low-rate bands.
- Step 2, multiple jobs or working spouse. Checking the box removes the $8,600 or $12,900 adjustment and uses the checkbox table, whose brackets are roughly half as wide, on the assumption that the other job uses the other half. For our $60,000 earner it raises withholding to $337.88. Check it on both jobs' W-4s, only when there are two jobs in total with similar pay; otherwise the IRS suggests its estimator or the Multiple Jobs Worksheet.
- Step 3, dependents and credits. The 2026 form uses $2,200 for each qualifying child under 17 and $500 for each other dependent, if total income will be $200,000 or less ($400,000 married filing jointly) (Form W-4 2026). One child cuts withholding to $108.46, a reduction of $84.62 per paycheck, which is $2,200 spread over 26 paychecks.
- Step 4(a), other income such as interest or dividends, adds tax withholding for income that has none.
- Step 4(b), deductions beyond the standard deduction, including the new 2025–2028 deductions below. $5,000 of deductions lowers withholding to $170.00.
- Step 4(c), extra withholding per paycheck, a simple way to avoid a bill at filing time.
What is new on the 2026 W-4
Publication 15-T lists three changes. The tables were updated for P.L. 119-21 (the One Big Beautiful Bill Act), which made the 2017 tax rates and larger standard deduction permanent. The form now has a checkbox below Step 4(c) to claim exemption from withholding, instead of writing “Exempt.” And the Step 4(b) worksheet accounts for new deductions: for 2025 through 2028, up to $25,000 of qualified tips and up to $12,500 ($25,000 married filing jointly) of qualified overtime compensation, meaning the extra “half” in time-and-a-half. If you expect those deductions, you can include them in Step 4(b) so your paychecks reflect them instead of waiting for a refund.
Withholding is an estimate of your tax, not your tax
Withholding is designed to land close to your actual liability for a typical worker, but it cannot see your whole return. Credits other than those in Step 3, a spouse's income when the Step 2 box is not used, or large deductions can leave you owing or due a refund. The IRS recommends its Tax Withholding Estimator when filling out the W-4. Social Security and Medicare are figured separately and are not affected by anything on the W-4; see FICA explained.
Run your own numbers. The Georgia paycheck calculator applies everything on this page to your pay, W-4 and G-4.
Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Form W-4 (2026), Employee’s Withholding Certificate
- IRS Revenue Procedure 2025-32 (2026 tax brackets and standard deduction)
- IRS Tax Withholding Estimator
This guide explains general rules for estimating paycheck withholding. It is not tax or legal advice. See our disclaimer.