Educational use only. This guide is for general educational purposes and
is not financial, tax, legal, or accounting advice. Tax rules can change and individual
facts matter. Verify the information with official sources and a qualified professional
before making tax or financial decisions.
Federal Withholding Changes
Use this table to compare federal withholding values for 2025 and 2026:
| Withholding item | 2025 | 2026 |
|---|---|---|
| Single no-withholding band ends | $8,600 | $7,500 |
| Single 10% band ends | $20,550 | $19,900 |
| Single top 37% bracket starts above | $635,000 | $648,100 |
| MFJ no-withholding band ends | $16,600 | $19,300 |
| MFJ 10% band ends | $40,500 | $44,100 |
| MFJ top 37% bracket starts above | $793,550 | $788,000 |
| Eligible child credit used in regular withholding | $2,000 | $2,200 |
Payroll Withholding Changes
Use this table to compare payroll tax values for 2025 and 2026:
| Payroll item | 2025 | 2026 | Effect |
|---|---|---|---|
| Social Security wage base | $176,100 | $184,500 | Higher maximum withholding |
| Maximum employee Social Security withholding | $10,918.20 | $11,439.00 | +$520.80 |
| Medicare base rate | 1.45% | 1.45% | No change |
| Additional Medicare withholding threshold | $200,000 | $200,000 | No change |
| California SDI rate | 1.2% | 1.3% | +0.1 percentage point |
Withholding Recalculation
Subtract eligible payroll deductions from regular federal wages:
Calculate regular federal withholding after bracket amounts and credits:
Subtract FICA-exempt payroll deductions from gross wages:
Apply the Social Security rate to wages up to the annual wage base:
Subtract SDI-exempt payroll deductions from gross wages: