U.S. Federal Income Tax Withholding

Reference Number: NFC-26-1769456361
Published: January 26, 2026
Effective: Pay Period 25, 2025

Summary

The United States Federal income tax withholding formula has changed and includes the following changes:

For withholding based on a pre-2020 Form W-4, Employee's Withholding Certificate, the annual amount to add to a nonresident alien's (NRA) taxable wages prior to calculating withholding has changed from $10,700 to $11,800.
For withholding based on a 2020 or later Form W-4, the annual amount to add to an NRA's taxable wages prior to calculating withholding has changed from $15,000 to $16,100.
The standard and high income tax tables for all marital statuses have changed.
The Federal Social Security (OASDI) wage base is increasing from $176,100 to $184,500.

No action on the part of the employee or the personnel office is necessary.

Note: Employees who intend to claim total Federal tax exemption for calendar year (CY) 2026 must submit a new Form W-4 prior to February 18, 2026. Effective PP 04, 2026, employees who claimed total exemption for CY 2025 and who have not filed a new Form W-4 for CY 2026 will have Federal taxes withheld as single taxpayers with zero withholding allowance. A Form W-4 filed for the prior year does not extend tax exemption into CY 2026. A new Form W-4 must be filed for CY 2026.

Tax Formula

Acceptable Exemption Form:	W-4
Basis for Withholding:	Prior to 2020 – Marital Status and Federal Exemptions 2020 or Later – Marital Status and Steps 2-4 on Form W-4
Acceptable Exemption Data:	Prior to 2020 – S, M, Number of Allowances Note: Any updates to be made to the prior to 2020 Form W-4 must be made on the 2020 or later Form W-4. 2020 or Later – MS, MJ, HH, and Steps 2-4 on Form W-4 2020 or later.
TSP Deferred:	Yes
Special Coding:	Filing Status Prior to 2020 – If the Form W-4 is prior to 2020, then the filing status of Single will select the MS filing status value. Similarly, the filing status of Married will select the MJ filing status value. 2020 or Later – Employees first paid after 2019 who have not submitted a Form W-4 are treated as if they have submitted a 2020 or later W-4 claiming Single or Married Filing Separately, Step 2 box is not checked, and no adjustments were entered. NRA Prior to 2020 – Exemption Code N, Number of Allowances. 2020 or Later – Exemption Code NR is the only acceptable code for NRA. NRAs are not eligible to claim the child tax credit or credit for other dependents in step 3 of Form W-4 (if the NRA is a resident of Canada, Mexico, or South Korea, or a student from India, or a business apprentice from India, they may claim, under certain circumstances (see Notice 1392, Supplemental Form W-4 Instructions for Non-resident Aliens), the child tax credit or credit for other dependents). If the filing status is not equal to Single and the employee is an NRA, then the default value used will be Single. Determine the Total Number of Allowances as follows: Claim only one allowance, unless a resident of Canada, Mexico, South Korea, or a United States national.

Withholding Formula (Effective Pay Period 25, 2025)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Employee Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account-health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.

If the employee is an NRA, add the amount from the table below based on Form W-4 status.

Form W-4 Status	Amount
Employee has not submitted a 2020 or later Form W-4	$11,800
Employee has submitted a 2020 or later Form W-4	$16,100

If the employee has submitted a 2020 or later Form W-4, then add the annual Other Income claimed in step 4a of the Form W-4.
OR
If the employee has submitted a 2020 or later Form W-4, then subtract the annual deductions claimed in step 4b of the Form W-4.
Subtract the wage exemption amount from the table below based on Form W-4 status.

Note: If the result is less than zero, the Adjusted Annual Wage Amount is zero.

Form W-4 Status:	Amount:
Employee has not submitted a 2020 or later Form W-4.	Multiply the number of withholding allowances claimed on previous Form W-4 by $4,300.
Employee submitted a 2020 or later Form W-4 and the step 2 box is checked.	$0
Employee has submitted a 2020 or later Form W-4, the step 2 box is not checked, and the marital status is Married Filing Jointly.	$12,900
Employee has submitted a 2020 or later Form W-4, the step 2 box is not checked and the marital status is NOT Married Filing Jointly.	$8,600

Apply the taxable income computed in step 7 to one of the tables below to determine the Federal income tax withholding.

Standard Single Tax Table. Use this table for employees who have:

Not submitted a 2020 or later Form W-4 and claim Single, Married Filing Separately, or Head of Household.
OR
Submitted a 2020 or later Form W-4, claim Single or Married Filing Separately, and did not check the box in step 2 of the IRS Form W-4 (to view the IRS Form W-4, including tables and worksheets).

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $7,500	$0
Over $7,500 but not over $19,900	$0 plus 10.0% of excess over $7,500
Over $19,900 but not over $57,900	$1,240 plus 12.0% of excess over $19,900
Over $57,900 but not over $113,200	$5,800 plus 22.0% of excess over $57,900
Over $113,200 but not over $209,275	$17,966 plus 24.0% of excess over $113,200
Over $209,275 but not over $263,725	$41,024 plus 32.0% of excess over $209,275
Over $263,725 but not over $648,100	$58,448 plus 35.0% of excess over $263,725
Over $648,100	$192,979.25 plus 37.0% of excess over $648,100

Standard Married Filing Jointly Tax Table. Use this table for employees who have:

Not submitted a 2020 or later Form W-4 and claim Married, or Married Filing Jointly.
OR
Submitted a 2020 or later Form W-4, claim Married or Married Filing Jointly, and did not check the box in step 2 of the IRS Form W-4 (to view the IRS Form W-4, including tables and worksheets).

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $19,300	$0
Over $19,300 but not over $44,100	$0 plus 10.0% of excess over $19,300
Over $44,100 but not over $120,100	$2,480 plus 12.0% of excess over $44,100
Over $120,100 but not over $230,700	$11,600 plus 22.0% of excess over $120,100
Over $230,700 but not over $422,850	$35,932 plus 24.0% of excess over $230,700
Over $422,850 but not over $531,750	$82,048 plus 32.0% of excess over $422,850
Over $531,750 but not over $788,000	$116,896 plus 35.0% of excess over $531,750
Over $788,000	$206,583.50 plus 37.0% of excess over $788,000

Standard Head of Household Tax Table. Use this table for employees who have submitted a 2020 or later Form W-4, claim Head of Household, and did not check the box in step 2 of the IRS Form W-4 (to view the IRS Form W-4, including tables and worksheets).

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $15,550	$0
Over $15,550 but not over $33,250	$0 plus 10.0% of excess over $15,550
Over $33,250 but not over $83,000	$1,770 plus 12.0% of excess over $33,250
Over $83,000 but not over $121,250	$7,740 plus 22.0% of excess over $83,000
Over $121,250 but not over $217,300	$16,155 plus 24.0% of excess over $121,250
Over $217,300 but not over $271,750	$39,207 plus 32.0% of excess over $217,300
Over $271,750 but not over $656,150	$56,631 plus 35.0% of excess over $271,750
Over $656,150	$191,171 plus 37.0% of excess over $656,150

Higher Single Tax Table. Use the table below for employees who have submitted a 2020 or later Form W-4, claim Single or Married Filing Separately, and checked the box in step 2 of the IRS Form W-4 (to view the IRS Form W-4, including tables and worksheets).

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $8,050	$0
Over $8,050 but not over $14,250	$0 plus 10.0% of excess over $8,050
Over $14,250 but not over $33,250	$620 plus 12.0% of excess over $14,250
Over $33,250 but not over $60,900	$2,900 plus 22.0% of excess over $33,250
Over $60,900 but not over $108,938	$8,983 plus 24.0% of excess over $60,900
Over $108,938 but not over $136,163	$20,512 plus 32.0% of excess over $108,938
Over $136,163 but not over $328,350	$29,224 plus 35.0% of excess over $136,163
Over $328,350	$96,489.63 plus 37.0% of excess over $328,350

Higher Married Filing Jointly Tax Table. Use the table below for employees who have submitted a 2020 or later Form W-4, claim Married or Married Filing Jointly, and checked the box in step 2 of the IRS Form W-4 (to view the IRS Form W-4, including tables and worksheets).

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $16,100	$0
Over $16,100 but not over $28,500	$0 plus 10.0% of excess over $16,100
Over $28,500 but not over $66,500	$1,240 plus 12.0% of excess over $28,500
Over $66,500 but not over $121,800	$5,800 plus 22.0% of excess over $66,500
Over $121,800 but not over $217,875	$17,966 plus 24.0% of excess over $121,800
Over $217,875 but not over $272,325	$41,024 plus 32.0% of excess over $217,875
Over $272,325 but not over $400,450	$58,448 plus 35.0% of excess over $272,325
Over $400,450	$103,291.75 plus 37.0% of excess over $400,450

Higher Head of Household Tax Table. Use the table below for employees who have submitted a 2020 or later Form W-4, claim Head of Household, and checked the box in step 2 of the IRS Form W-4 (to view the IRS Form W-4, including tables and worksheets).

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $12,075	$0
Over $12,075 but not over $20,925	$0 plus 10.0% of excess over $12,075
Over $20,925 but not over $45,800	$885 plus 12.0% of excess over $20,925
Over $45,800 but not over $64,925	$3,870 plus 22.0% of excess over $45,800
Over $64,925 but not over $112,950	$8,077.50 plus 24.0% of excess over $64,925
Over $112,950 but not over $140,175	$19,603.50 plus 32.0% of excess over $112,950
Over $140,175 but not over $332,375	$28,315.50 plus 35.0% of excess over $140,175
Over $332,375	$95,585.50 plus 37.0% of excess over $332,375

Divide the annual Federal income tax withholding calculated in step 8 by the number of pay dates in the tax year to obtain the biweekly Tentative Federal Withholding amount.
If the employee has submitted a 2020 or later Form W-4 and has entered an Annual Dependent Tax Credit in step 3 of the IRS Form W-4, divide the Annual Dependent Tax Credit by the appropriate number of pay dates in the tax year. Subtract the result from the biweekly Tentative Federal Withholding amount in step 9.
If the employee has elected to have additional tax withheld per pay period, then add the additional amount to the pay period tax calculated in the previous steps to determine the amount of tax to be withheld for this payroll period.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the NFC Home page. Select the Publications tab and select Taxes from the Publications Library section to launch the tax map. Select the desired state from the map provided for the formula.

Previous Tax Bulletin

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