Withholding, not your tax bill
Payroll withholding is a prepayment figured one check at a time. Your actual tax is settled when you file, so a refund or balance due is normal. We model the same published methods payroll systems use, so the result should match a correctly configured paycheck to within rounding.
Federal income tax
We implement IRS Publication 15-T (2026), Worksheet 1A, the percentage method for automated payroll systems:
- Multiply this check’s taxable wages (after pre-tax deductions) by the number of pay periods.
- Add W-4 Step 4(a) other income. Subtract Step 4(b) deductions and, if the Step 2 box is not checked, $12,900 (married filing jointly) or $8,600 (other statuses). Floor at zero.
- Apply the annual percentage table for the filing status (the Step 2 table if the box is checked), then divide by the number of pay periods.
- Subtract Step 3 credits divided by the number of pay periods, floored at zero, then add Step 4(c) extra withholding.
Forms W-4 from 2019 or earlier subtract $4,300 per allowance instead, and use the single or married table.
2026 annual percentage method tables
From Publication 15-T, page 12. Withholding = base amount + rate × (adjusted annual wages − threshold).
| Adjusted annual wages over | Base | Rate | Step 2 box: over | Base |
|---|---|---|---|---|
| $0 | $0.00 | 0% | $0 | $0.00 |
| $7,500 | $0.00 | 10% | $8,050 | $0.00 |
| $19,900 | $1,240.00 | 12% | $14,250 | $620.00 |
| $57,900 | $5,800.00 | 22% | $33,250 | $2,900.00 |
| $113,200 | $17,966.00 | 24% | $60,900 | $8,983.00 |
| $209,275 | $41,024.00 | 32% | $108,938 | $20,512.00 |
| $263,725 | $58,448.00 | 35% | $136,163 | $29,224.00 |
| $648,100 | $192,979.25 | 37% | $328,350 | $96,489.63 |
| Adjusted annual wages over | Base | Rate | Step 2 box: over | Base |
|---|---|---|---|---|
| $0 | $0.00 | 0% | $0 | $0.00 |
| $19,300 | $0.00 | 10% | $16,100 | $0.00 |
| $44,100 | $2,480.00 | 12% | $28,500 | $1,240.00 |
| $120,100 | $11,600.00 | 22% | $66,500 | $5,800.00 |
| $230,700 | $35,932.00 | 24% | $121,800 | $17,966.00 |
| $422,850 | $82,048.00 | 32% | $217,875 | $41,024.00 |
| $531,750 | $116,896.00 | 35% | $272,325 | $58,448.00 |
| $788,000 | $206,583.50 | 37% | $400,450 | $103,291.75 |
| Adjusted annual wages over | Base | Rate | Step 2 box: over | Base |
|---|---|---|---|---|
| $0 | $0.00 | 0% | $0 | $0.00 |
| $15,550 | $0.00 | 10% | $12,075 | $0.00 |
| $33,250 | $1,770.00 | 12% | $20,925 | $885.00 |
| $83,000 | $7,740.00 | 22% | $45,800 | $3,870.00 |
| $121,250 | $16,155.00 | 24% | $64,925 | $8,077.50 |
| $217,300 | $39,207.00 | 32% | $112,950 | $19,603.50 |
| $271,750 | $56,631.00 | 35% | $140,175 | $28,315.50 |
| $656,150 | $191,171.00 | 37% | $332,375 | $95,585.50 |
Social Security and Medicare
- Social Security: 6.2% of wages up to $184,500 per employer per year.
- Medicare: 1.4500000000000002% of all wages.
- Additional Medicare: 0.8999999999999999% on wages this employer pays above $200,000, whatever your filing status.
Caps are tracked check by check. The “Full year” view simulates every paycheck of the year in order, so a check that crosses the wage base is split correctly and annual totals are exact rather than averaged. Enter wages already paid this year to price a specific late-year check.
Bonuses and other supplemental wages
Federal: the optional flat 22% method (Publication 15, section 7), with the mandatory 37% rate on supplemental wages above $1 million in the year, or the aggregate method (withholding on regular + bonus, minus withholding on regular alone). States use their own flat supplemental rate where one is published, otherwise the aggregate method.
Pre-tax deductions
401(k)/403(b)/457 deferrals reduce income-tax wages but not Social Security and Medicare wages. Section 125 health premiums, payroll HSA contributions, FSAs and commuter benefits reduce both. States that don’t follow these rules (for example, California and New Jersey tax HSA contributions; Pennsylvania taxes 401(k) deferrals) are coded per state.
Pay frequencies and hours
Pay periods per year follow Publication 15-T Table 3:
Weekly: 52Every two weeks: 26Twice a month: 24Monthly: 12Daily: 260Quarterly: 4Twice a year: 2Once a year: 1
Hourly pay is entered per week and converted to the pay period (52 ÷ periods weeks per check), so a biweekly check is two weeks of hours and a semimonthly check is 2.17 weeks. Overtime is paid at the multiplier you choose; it is up to you to enter overtime hours by the workweek, as the law requires.
Rounding
Every line is computed in whole cents, rounding half away from zero at the step where the agency’s method rounds. Some employers round federal withholding to whole dollars, which the IRS allows; results can then differ by up to 50¢.
State and local coverage
51 jurisdictions, 214 local tax options. Exact means the state’s published 2026 withholding formula is implemented; estimate means a documented simplification, shown next to the result.
| State | Method | Status | Payroll programs | Local options | Verified |
|---|---|---|---|---|---|
| Alabama | Alabama formula: annualized wages minus a phased standard deduction, your annualized federal income tax withholding, the Form A4 personal exemption and dependent amounts, then 2%/4%/5% brackets, divided back to the pay period. | Exact | None | 5 (4 exact) | |
| Alaska | Alaska has no income tax. Employees pay 0.5% unemployment insurance on the first $54,200 of wages in 2026. | Exact | Alaska unemployment insurance (employee) | None | |
| Arizona | Arizona withholds the percentage you elect on Form A-4 (0.5% to 3.5%, or zero) from gross taxable wages, the same wages as federal W-2 box 1. With no A-4 on file the employer must use 2.0%. | Exact | None | None | |
| Arkansas | Arkansas formula: annualized wages minus the $2,470 standard deduction, taxed from the DFA bracket table (top rate 3.7%, 3.9% before the May 2026 revision), minus $29 per AR4EC exemption, divided by pay periods. | Exact | None | None | |
| California | EDD Method B (exact calculation): low-income exemption check, minus estimated-deduction allowances and the standard deduction, then the payroll-period tax rate table, minus $168.30 a year per regular DE 4 allowance. Plus 1.3% SDI on all wages. | Exact | CA SDI (disability & paid family leave) | None | |
| Colorado | DR 1098 worksheet: annualize wages, subtract the annual withholding allowance ($5,500, or $11,000 if married filing jointly, unless DR 0004 sets another amount), withhold 4.40%, divide by pay periods. FAMLI premium 0.44% on wages up to $184,500. | Exact | Colorado FAMLI premium | 4 (4 exact) | |
| Connecticut | TPG-211 withholding calculation rules: annualize wages, subtract the CT-W4 code’s personal exemption, apply the rate schedule, add the 2% phase-out add-back and recapture, apply the personal tax credit, then divide by pay periods. | Exact | CT Paid Leave | None | |
| Delaware | Delaware annualized wage method: annual wages minus the $3,250 standard deduction ($6,500 married filing jointly), tax from the 0%–6.6% schedule, minus a $110 credit per allowance, divided by pay periods. | Exact | Delaware Paid Leave | 1 (0 exact) | |
| Florida | Florida has no state income tax and no state payroll deductions, so only federal income tax and FICA come out of wages. | Exact | None | None | |
| Georgia | Georgia percentage method: wages minus the per-period standard deduction and $5,000-per-allowance amounts, times a flat 4.99% (5.19%, $4,000 allowances and smaller deductions for paychecks before May 11, 2026). | Exact | None | None | |
| Hawaii | Hawaii Booklet A annualized method: annual wages minus $1,144 per HW-4 allowance and a $4,350 lump-sum allowance, taxed at 1.4%–7.9%, divided by pay periods. Plus up to 0.5% TDI, capped at $7.50 a week. | Exact | Hawaii TDI (temporary disability) (estimate) | None | |
| Idaho | Idaho EPB00744 percentage method: 5.3% of wages above the payroll-period threshold for your status, rounded to the whole dollar. Tables revised for paychecks from August 1, 2026, when the child tax credit allowance dropped to zero. | Exact | None | None | |
| Illinois | Flat 4.95% on wages after IL-W-4 exemption allowances ($2,925 basic, $1,000 age/blind), per the IL-700-T automated payroll formula. | Exact | None | None | |
| Indiana | Flat 2.95% on wages after WH-4 exemptions ($1,000 per line 5 exemption, $1,500 more per qualifying dependent child, $3,000 per adopted child), per Departmental Notice #1. County tax is a separate line based on your county on Jan. 1. | Exact | None | 92 (92 exact) | |
| Iowa | Iowa 2026 formula: subtract the per-period deduction for your IA W-4 status ($13,000, $19,500 or $26,000 a year), take 3.8%, then subtract your IA W-4 dollar allowances divided by pay periods. | Exact | None | None | |
| Kansas | KW-100 percentage formula: subtract your K-4 allowance amount ($9,160 per personal exemption, $2,320 for each other allowance, divided by pay periods), then apply the Single or Joint table: 5.2%, then 5.58%. | Exact | None | None | |
| Kentucky | Kentucky formula: annualize wages, subtract the $3,360 standard deduction, take 3.5% and divide by pay periods. Local occupational license tax is a separate line. | Exact | None | 9 (5 exact) | |
| Louisiana | Louisiana R-1306 formula: wages minus the per-period share of the L-4 standard deduction ($12,875 or $25,750 a year), times 3.09%. | Exact | None | None | |
| Maine | Maine percentage method: annualize wages, subtract $5,300 per W-4ME allowance and the withholding standard deduction (phased out at higher pay), apply 5.8% / 6.75% / 7.15% (plus the 2% surcharge from the August 2026 tables), divide by pay periods and round to the dollar. | Exact | Maine Paid Family & Medical Leave | None | |
| Maryland | Maryland percentage method: wages minus the $3,400 standard deduction and $3,200 per MW507 exemption, then state rates from 4.75% to 6.50% plus your county’s local rate (2.25%–3.30%) on the same taxable income. Nonresidents pay a special 2.25% instead of county tax. | Exact | None | 24 (24 exact) | |
| Massachusetts | Circular M percentage method: subtract Social Security and Medicare (up to $2,000 a year) and your M-4 exemption factor, annualize, tax at 5% (9% above $1,107,750), then subtract the head-of-household and blindness credits. | Exact | MA Paid Family & Medical Leave | None | |
| Michigan | Flat 4.25% on wages after MI-W4 exemptions ($5,900 each per year, prorated per paycheck), per Form 446. City income tax is a separate line. | Exact | None | 24 (24 exact) | |
| Minnesota | Minnesota computer formula: annualize wages, subtract $5,300 per W-4MN allowance, apply the single or married schedule (0% to 9.85%) and divide by pay periods. Paid Leave premium up to 0.44% is a separate line. | Exact | Minnesota Paid Leave premium | None | |
| Mississippi | Mississippi formula: annualized wages minus your 89-350 exemption and standard deduction; the first $10,000 is taxed at 0% and the rest at 4.0%; divided by pay periods and rounded to whole dollars. | Exact | None | None | |
| Missouri | Missouri formula: annualize wages, subtract the standard deduction for your MO W-4 status, apply the 0%–4.7% schedule, divide by pay periods and round to the nearest dollar. Federal tax is not deducted. | Exact | None | 2 (2 exact) | |
| Montana | Montana withholding tax formula W = A + B × (G − C): a 0% band, then 4.7%, then 5.65% on wages per pay period, using the table for your MW-4 filing status. Rounded to the nearest dollar. | Exact | None | None | |
| Nebraska | Circular EN percentage method: subtract W-4N allowances ($2,440 a year each, per-period values from the allowance table), then apply the single or married table for your pay period (2.26% to 4.60%). Larger employers must withhold at least 1.5% of wages unless you document a lower amount. | Exact | None | None | |
| Nevada | Nevada has no state income tax and no employee payroll contributions, so only federal income tax and FICA come out of wages. | Exact | None | None | |
| New Hampshire | New Hampshire has no income tax on wages and no mandatory employee payroll deductions, so only federal income tax and FICA come out of pay. | Exact | None | None | |
| New Jersey | NJ-WT percentage method: wages minus NJ-W4 allowances ($1,000 a year each), then the Rate A–E table for your pay period. Single and married-separate filers default to Rate A, everyone else to Rate B. | Exact | NJ unemployment insurance (UI); NJ workforce development (WF/SWF); NJ disability insurance (TDI); NJ family leave insurance (FLI) | None | |
| New Mexico | FYI-104 percentage method: look up this paycheck’s wages in the table for your pay period and W-4 filing status (single, married, head of household), then apply the base amount plus the marginal rate (1.5% to 5.9%). | Exact | None | None | |
| New York | NYS-50-T-NYS exact calculation method: wages minus the deduction allowance and $1,000-a-year exemptions, then the published 2026 table for your pay period (Method III flat rates for very high pay). | Exact | NY disability (DBL); NY Paid Family Leave | 2 (2 exact) | |
| North Carolina | North Carolina NC-30 annualized method: annual wages minus the N.C. standard deduction ($12,750, or $19,125 for head of household) and $2,500 per NC-4 allowance, times 4.09%, divided by pay periods and rounded to whole dollars. | Exact | None | None | |
| North Dakota | North Dakota percentage method for 2020+ W-4s: annualize wages, apply the annual table for your W-4 filing status (0%, then 1.95%, then 2.5%), divide by pay periods and round to the nearest dollar. | Exact | None | None | |
| Ohio | Ohio optional computer formula: annualize wages, subtract $650 per IT 4 exemption, apply the withholding schedule (1.775% / 2.99% / 3.64% through July 31, 2026; 1.6% / 2.99% / 3.4% from August 1, 2026), then divide by pay periods. | Exact | None | 29 (0 exact) | |
| Oklahoma | OW-2 percentage formula: subtract OK-W-4 allowances ($1,000 a year each), apply the single or married table for your pay period (2.5%, 3.5%, 4.5%), and round to the nearest dollar. | Exact | None | None | |
| Oregon | Oregon’s annual computer formula (150-206-436): wages minus federal tax withheld (up to $8,750, phased out for high earners) minus the standard deduction, taxed at 4.75%–9.9%, minus $263 per OR-W-4 allowance. Plus the 0.1% statewide transit tax and 0.6% Paid Leave Oregon. | Exact | Oregon statewide transit tax; Paid Leave Oregon | None | |
| Pennsylvania | Flat 3.07% of Pennsylvania compensation with no exemptions or allowances. 401(k) deferrals, dependent care FSA and commuter deductions are taxable for PA. Employees also pay 0.07% unemployment compensation tax on all wages. | Exact | PA unemployment compensation (UC) | 22 (21 exact) | |
| Rhode Island | Rhode Island percentage method: subtract $1,000 a year per RI W-4 allowance (none once annual pay passes $290,800), then apply the 3.75% / 4.75% / 5.99% table for your pay period. Same table for every filing status. | Exact | RI temporary disability (TDI/TCI) | None | |
| South Carolina | South Carolina WH-1603F formula: annualized wages minus $5,000 per SC W-4 allowance and a 10% standard deduction (up to $7,500, only with at least one allowance), taxed at 0%/3%/6%, divided by pay periods. | Exact | None | None | |
| South Dakota | South Dakota has no state income tax and no employee payroll deductions, so only federal income tax and FICA come out of wages. | Exact | None | None | |
| Tennessee | Tennessee has no tax on wages and no state payroll deductions, so only federal income tax and FICA come out of pay. | Exact | None | None | |
| Texas | Texas has no state income tax, so only federal income tax and FICA come out of wages. | Exact | None | None | |
| Utah | Utah Pub 14 schedule: flat rate on Utah taxable wages (4.45% from June 1, 2026; 4.5% before), minus a base allowance credit that shrinks by 1.3% of wages above a threshold. Each line is rounded to whole dollars as in the Pub 14 examples. | Exact | None | None | |
| Vermont | GB-1210-2026 percentage method: subtract $5,400 a year per W-4VT allowance, then apply the single or married table for your pay period (3.35% to 8.75%). | Exact | VT Child Care Contribution | None | |
| Virginia | Virginia formula: annualized wages minus the $8,750 standard deduction, $930 per personal/dependent exemption and $800 per age-65/blind exemption, taxed at 2%–5.75%, then divided by pay periods. | Exact | None | None | |
| Washington | Washington has no income tax. Employees pay Paid Family & Medical Leave premiums (71.43% of the 1.13% premium, up to $184,500 of wages) and the 0.58% WA Cares long-term care premium on all wages. | Exact | WA Paid Family & Medical Leave; WA Cares Fund (long-term care) | None | |
| Washington, DC | DC percentage method per OTR: annualize wages, subtract $4,300 per D-4 allowance, apply DC’s 4%–10.75% rate schedule, and divide by pay periods. DC has no employee paid-leave or disability deduction. | Exact | None | None | |
| West Virginia | West Virginia percentage method (IT-100.2A): wages minus $2,000 a year per IT-104 exemption, then the two-earner or optional one-earner table. 2026 tables reflect the 5% rate cut (2.11%–4.58%). | Exact | None | None | |
| Wisconsin | W-166 alternate method: annualize, subtract a standard deduction that phases out with income, subtract $400 per WT-4 exemption, apply the 3.54%–7.65% withholding schedule and divide by pay periods. | Exact | None | None | |
| Wyoming | Wyoming has no state income tax and no employee payroll deductions, so only federal income tax and FICA come out of wages. | Exact | None | None |
What is not modeled
- Living in one state and working in another. The calculator applies the work state’s rules; reciprocity and resident credits are explained on state pages.
- Local taxes not listed in a state’s local menu. You can add them as an after-tax deduction to see the effect.
- Tips, imputed income (such as group-term life over $50,000), stock compensation, pensions and nonresident-alien withholding adjustments.
- Benefit contribution limits (we don’t stop a 401(k) at the annual limit) and employer-specific rounding or pay-date rules.
- Your final tax liability, refunds, credits beyond W-4 Step 3, and estimated tax payments.
How we verify
The engine is a framework-free TypeScript module with rule data for each year and jurisdiction. An automated test suite checks it against worked examples published in IRS Publication 15-T and in state withholding guides, against step-by-step hand calculations documented in the tests, and against edge cases: bracket boundaries, the Social Security wage base crossed mid-check, the Additional Medicare threshold, credits larger than tentative withholding, contribution caps and mid-year rule changes. We also compare sample scenarios with independent public calculators as a secondary check. Each rule set records its source, edition and the date it was last verified.
Revision log
- November 12, 2026: 2026 federal, state and local rules verified against the sources below and on each state page.
Found a mistake? Tell us and include the state, pay and W-4 details so we can reproduce it.
Federal sources
Last verified November 12, 2026.