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By Paycheck Calculators Editorial Team • Last updated 2026-11-08

How Federal Withholding Works in 2026

Your employer does not guess how much federal tax to take out of your pay. They follow a set of IRS tables — IRS Publication 15-T — and the details on your W-4 form. Here is what goes into that number, in plain words.

First, your employer works out your taxable income. That is your gross pay, minus the money that goes to your 401(k), minus your health premiums, minus the standard deduction. For 2026 the standard deduction is $16,100 if you file single, and $32,200 if you are married filing jointly (IRS Rev. Proc. 2025-32). What is left after those three things is the income your federal tax is figured on.

Then the tax itself is figured in steps, called brackets. The first chunk of taxable income is taxed at 10%, the next chunk at 12%, and so on up the scale. That is why two people on the same salary can have different withholding: a different filing status, a different 401(k) rate, or a different W-4 can all change the taxable income the brackets are applied to.

Your W-4 matters more than most people think. It tells your employer your filing status and whether you want extra money withheld. If you started a second job, got married, or had a child, it is worth filling in a new W-4 — otherwise the withholding on your paycheck may be too high or too low, and you only find out at tax time.

Worked example

$60,000, single, 5% 401(k), $120 health per biweekly period: taxable income $37,780 a year, federal withholding about $4,285.60 a year ($164.83 per biweekly period) using the simplified brackets in our calculator. This is an estimate, not tax advice.

Use the Paycheck Calculator to see your own withholding.