The IRS just released the 2026 version of Form W-4 which determines how federal income tax is withheld from an employee’s paycheck. The updated form reflects new federal tax legislation and is designed to improve withholding accuracy.
The 2026 version of Form W-4 includes:
- Expanded deduction categories including on qualified tips and overtime;
- Increased Child Tax Credit (now $2,200 per qualifying child);
- New “Exempt from Withholding” checkbox;
- Revised federal withholding tables; and
- Updated worksheets.
Employers should begin using the new 2026 W-4 for all new hires and any employee updates and encourage current employees to review their withholdings.
The 2026 Form W-4 can be downloaded on the IRS here.
