Standard Withholding Table: Wage Bracket and Percentage Methods

A standard withholding table is the IRS-published chart, found in Publication 15-T, that tells an employer how much federal income tax to deduct from an employee’s paycheck based on the worker’s Form W-4, pay frequency, and wage amount. The United States collects income tax on a pay-as-you-go basis, so most of your yearly bill is taken out gradually through payroll rather than paid all at once at filing time. For 2026, the tables reflect seven tax brackets running from 10% to 37% and standard deductions of $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household.¹ When the number produced by the table matches what you actually owe, you neither cut a check in April nor float the Treasury an interest-free loan all year.

Federal law requires every employer paying wages to deduct income tax using tables or procedures the IRS prescribes, then remit those amounts to the Treasury on a set schedule.² When you file your return the next spring, the total that was withheld is compared to your actual liability, and the difference becomes either a refund or a balance due.

What the 2026 Table Already Accounts For

The table isn’t a rough estimate. It bakes in the same graduated brackets that appear on a finished tax return, scaled down to the length of a pay period. For 2026, those brackets are:¹

10% up to $12,400 (single) or $24,800 (married filing jointly)
12% over $12,400 (single) or $24,800 (married filing jointly)
22% over $50,400 (single) or $100,800 (married filing jointly)
24% over $105,700 (single) or $211,400 (married filing jointly)
32% over $201,775 (single) or $403,550 (married filing jointly)
35% over $256,225 (single) or $512,450 (married filing jointly)
37% over $640,600 (single) or $768,700 (married filing jointly)

The table also builds in the standard deduction before applying any rate. For a single filer, the first $16,100 of annual wages is shielded from tax entirely. Because that shield is pre-loaded, the employer never has to ask whether you itemize; the table assumes the standard deduction unless you adjust Step 4(b) on your W-4.

These 2026 rates and deductions reflect the changes made by the Tax Cuts and Jobs Act of 2017 and permanently extended by the One Big Beautiful Bill Act (P.L. 119-21).³

Two Forms of the Table: Wage Bracket and Percentage Method

Publication 15-T actually offers two ways to arrive at the withholding amount. Both are meant to produce the same dollar figure; they differ in how the employer gets there.

Wage Bracket Method

This is the simpler version and the one people usually picture when they hear “withholding table.” It’s a lookup grid organized by pay frequency, filing status, and wage range. Find the row matching the employee’s adjusted wages, move across to the correct filing-status column, and read the withholding straight off the page. The catch is coverage: the wage bracket tables only run up to roughly $100,000 in annualized wages. Anyone earning more requires the percentage method.⁴

Percentage Method

The percentage method uses a worksheet instead of a fixed grid. The employer annualizes the wage, subtracts the appropriate amounts, applies the bracket rate to the taxable portion, and then divides back down to the pay period. It handles any wage level and any combination of W-4 adjustments, which is why most payroll software runs on it.³

What the Employer Needs Before Opening the Table

The lookup only works once four pieces of information are in hand:

Filing status from Step 1(c) of the W-4: single or married filing separately, married filing jointly or qualifying surviving spouse, or head of household.⁵
Whether the Step 2 checkbox is marked. Checking it cuts the standard deduction and bracket widths in half for that job’s withholding, which is how the table keeps two-earner households from being badly under-withheld.⁵
Pay frequency: weekly, biweekly, semimonthly, or monthly. Each frequency has its own table because the bracket thresholds have to be scaled to the pay period.
Adjusted wage amount: gross pay minus pre-tax deductions such as 401(k) contributions and employer-sponsored health insurance premiums.

Beyond those four, the W-4 may include dependent credits in Step 3, additional income in Step 4(a), extra deductions in Step 4(b), and extra per-paycheck withholding in Step 4(c). Those figures adjust the result after the table lookup.

How the Calculation Runs

With the wage bracket method, the sequence is short. Find the right table for the pay frequency, and choose between the “Standard Withholding” column and the “Form W-4 Step 2 Checkbox” column based on whether Step 2 is marked. Locate the wage row that includes the employee’s adjusted wages. Read the tentative withholding at the intersection with the filing-status column. Then apply the W-4 adjustments: subtract the per-period value of any dependent credits claimed in Step 3, and add any extra withholding requested in Step 4(c). The result can’t drop below zero.

The percentage method reaches the same endpoint through a worksheet: annualize the wage, subtract the standard deduction and any Step 4(b) deductions, apply the correct bracket percentage to the taxable portion, subtract Step 3 credits, and divide back to the pay period.³ The final figure from either method is what the employer takes out of the paycheck and sends to the Treasury.

Where the Standard Table Doesn’t Apply

The standard withholding table covers regular wages and federal income tax. Several common situations sit outside it.

Supplemental Wages

Bonuses, commissions, overtime, and severance pay follow their own withholding rules. If the employee has already received regular wages on which tax was withheld, the employer can apply a flat 22% to supplemental wages up to $1 million in a calendar year. Any supplemental wages that push the year’s total past $1 million must be withheld at a mandatory 37% on the excess, regardless of what the W-4 says.⁶ An alternative aggregate method combines the supplemental payment with the most recent regular check, runs the whole amount through normal withholding, and subtracts what was already withheld.⁷

Employees Claiming Exempt

An employee who had no federal income tax liability last year and expects none this year can write “Exempt” on the W-4, and the employer withholds nothing for federal income tax.⁶ The exemption expires every year. To keep it in place, the employee must file a new W-4 claiming exempt by February 15. Miss that date and the employer must start withholding as though the worker had filed a plain W-4 with no adjustments: single, no credits, no extra deductions.⁸

IRS Lock-In Letters

If the IRS decides an employee doesn’t have enough withheld, it can send the employer a lock-in letter specifying a minimum rate.⁹ Sixty days after the date on the letter, the employer must withhold at least that amount and reject any new W-4 that would drop withholding below the floor.¹⁰ The employee can still ask for more withholding, but lowering it takes IRS approval.

Nonresident Alien Employees

For nonresident alien employees, the employer must add a set dollar amount to wages before running the withholding calculation. For 2026, that addition ranges from $309.60 per week to $16,100 per year, depending on pay frequency, for workers on a 2020 or later W-4.¹¹ The adjustment exists because nonresident aliens generally can’t claim the standard deduction, so the table needs to withhold more to match actual liability. It affects only the withholding math, not taxable income or FICA.

When To Update Your W-4

The table produces the right answer only when the W-4 feeding it reflects your real situation. The IRS recommends rechecking your withholding when any of the following happens:

Starting a new job or picking up a second one
A significant increase or decrease in income
Getting married, divorced, or separated
Having or adopting a child
Buying a home

The IRS Tax Withholding Estimator at irs.gov/W4App walks through your income, deductions, and credits and produces a pre-filled W-4 to hand to your employer.¹² Running it after any of the events above takes about 15 minutes and is the best way to keep the number your employer pulls from the standard withholding table close to what you’ll actually owe.

1
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
2
Office of the Law Revision Counsel. 26 USC 3402 – Income Tax Collected at Source
3
Internal Revenue Service. Publication 15-T (2026), Federal Income Tax Withholding Methods
4
Internal Revenue Service. Publication 15-T (2026), Federal Income Tax Withholding Methods
5
Internal Revenue Service. Form W-4 (2026) Employee’s Withholding Certificate
6
Internal Revenue Service. Publication 15 (2026), Circular E, Employer’s Tax Guide
7
eCFR. 26 CFR 31.3402(g)-1 – Supplemental Wage Payments
8
Internal Revenue Service. Topic No. 753, Form W-4 Employees Withholding Certificate
9
Internal Revenue Service. Understanding Your Letter 2801C
10
Internal Revenue Service. Understanding Your Letter 2800C
11
Internal Revenue Service. Publication 15-T (2026), Federal Income Tax Withholding Methods
12
Internal Revenue Service. Tax Withholding Estimator