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
| 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
| 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% | 1.2% | No change |
How to Recalculate
Federal regular wages = salary - medical - 401(k) - HSA - FSA
Federal regular withholding = bracket base + marginal amount - eligible-child credit
FICA wages = gross - medical - HSA - FSA
Social Security withholding = min(FICA wages, 2026 wage base) × 6.2%
Federal regular withholding = bracket base + marginal amount - eligible-child credit
FICA wages = gross - medical - HSA - FSA
Social Security withholding = min(FICA wages, 2026 wage base) × 6.2%