What changed in federal withholding for 2026?
The standard deduction rose to $16,100 for single filers (from $15,750) and $32,200 for married couples (from $31,500), and every bracket threshold moved up about 4%: the 12% bracket now starts at $12,400 of taxable income for a single filer, the 22% at $50,400 and the 24% at $105,700. For someone whose salary did not change, that is a small cut in federal withholding, about $60 a year on $60,000 and about $190 on $150,000, because slightly more income sits in the lower brackets and more is deducted.
The figures come from IRS Revenue Procedure 2025-32 and include the changes made by the One Big Beautiful Bill Act, which made the 2017 rates permanent, raised the standard deduction, and added deductions for tips, overtime and seniors that are claimed on the return rather than through payroll. A salary increase larger than 4% moves income into higher brackets and can offset the whole effect.
What changed in Social Security and Medicare?
The Social Security wage base rose from $176,100 to $184,500. For anyone earning below $176,100 nothing changed: 6.2% still comes out of every paycheck. For those earning between the two figures, Social Security now continues for a few more weeks in the year, and for those above $184,500 the annual maximum contribution rose from $10,918 to $11,439, an extra $521 spread across the year. Medicare's 1.45% rate and the $200,000 Additional Medicare threshold did not change; the threshold has been fixed since 2013.
Which states cut income tax for 2026?
Eight, all effective 1 January 2026, and the paycheck effect on a $60,000 single salary is: Ohio replaced its 2.75% and 3.125% brackets with a flat 2.75% above $26,050, worth about $110 a year. North Carolina fell from 4.25% to 3.99%, about $120. Kentucky fell from 4.0% to 3.5%, about $280. Mississippi fell from 4.4% to 4.0%, about $170. Indiana fell from 3.0% to 2.95%, about $30. Nebraska cut its top rate from 5.2% to 4.55% and reshaped its brackets, about $330. Montana cut its top rate from 5.9% to 5.65% and widened the 4.7% bracket, about $130. Oklahoma collapsed six brackets into three with a 4.5% top rate, about $130.
New York also trimmed its lowest five rates by 0.1 point each, worth about $60 on $60,000. Several states (Hawaii, Missouri, Nebraska, Wisconsin) had earlier-enacted changes phasing in, and most graduated-rate states indexed their brackets upward, which reduces withholding by a few dollars a period. Each state's paycheck page shows what is new for 2026 in its sidebar.
Which new payroll deductions started in 2026?
Minnesota Paid Leave began collecting premiums on 1 January 2026: 0.88% of wages, split between employer and employee, with the employee share up to 0.44%, about $264 a year on $60,000. Delaware Paid Leave premiums began in 2025 and benefits start in 2026. Maine Paid Family and Medical Leave (0.5% employee share) began collecting in 2025 and starts paying in May 2026. Oregon raised its statewide transit tax to 0.2% from 1 January 2026. Washington adjusted its PFML rate to 0.92% total. None of these is income tax and none is included in this site's calculator; each state page names them.
Why did my benefit deductions change?
Employer health plans reset on 1 January for most companies, and premiums rose an average of about 6% to 7% for 2026 according to employer surveys. The 401(k) contribution limit rose to $24,500 ($32,500 with catch-up at 50 and over), so anyone contributing the maximum sees a slightly larger pre-tax deduction and correspondingly lower income tax. HSA limits rose to $4,400 (self-only) and $8,750 (family). FSA elections made in open enrolment take effect with the first January paycheck. These changes are set by the employer and the employee, not by tax law, and they often exceed the tax changes in size.
How do I check whether the change is right?
Take the first stub of the new year and the last of the old one and compare the lines in this order. Gross pay: the same unless there was a raise. Social Security: 6.2% of gross both times, unless the old year's had stopped at the cap. Medicare: 1.45% both times. Federal withholding: lower by a small amount on the same gross, unless the W-4 changed. State withholding: lower in the eight states that cut rates and in most graduated states, unchanged in flat-rate states that did not cut, and possibly higher where a new premium started. Pre-tax deductions: whatever the new plan year set.
If the federal line moved by more than about 1% of gross, or the state line moved in a state that made no change, the withholding certificate is the likely cause; payroll systems sometimes reset elections during a year-end conversion. The state paycheck pages show the expected state line for a given salary, and the difference between that and the stub, times the number of pay periods, is what will be reconciled on the return.
Why did my paycheck go down when nothing changed?
The usual causes, in order of frequency: a benefit premium increase at plan renewal; a W-4 or state withholding form that was re-submitted or defaulted when the payroll system changed; a bonus or third paycheck in the previous month that made the normal one look small; the Social Security cap resetting on 1 January for a high earner who had stopped paying it; a move to a jurisdiction with a local tax; and a payroll error in the state or local code. The pay stub guide shows how to check each line, and comparing the last stub of December with the first of January line by line usually finds it in a minute.