W-4 Calculator 2026

Quick answer: what goes on each W-4 line

The calculator above does the arithmetic for you: it estimates your full-year tax, compares it with what's been withheld so far plus what your remaining paychecks will withhold, and tells you what to put in Step 4(c) (to withhold more) or Step 4(b) (to withhold less) to land near your target.

What changed on the 2026 Form W-4

• Step 3 uses $2,200 per child, up from $2,000 on the 2025 form, plus $500 per other dependent.
• A new 15-line Deductions Worksheet on its own page, with lines for the new Schedule 1-A deductions (tips, overtime, car-loan interest and the senior deduction).
• Step 4 is no longer labeled "optional". If you skip Step 4(b), withholding assumes you take only the standard deduction.
• An exempt checkbox replaces writing "Exempt" on the form.
• The form grew from four pages to five.

Step by step: filling out the 2026 W-4

Step 1: personal information and filing status

Choose the status you expect to use on your 2026 return. Head of household withholds less than single, so pick it only if you'll qualify to file that way.

Step 2: multiple jobs or a working spouse

Each employer's withholding assumes its job is your only one, so each one applies the full standard deduction and the lowest brackets. With two jobs in the household, that double-counts, and too little is withheld. The form gives three fixes:

1. use the IRS Tax Withholding Estimator (or this calculator) and put the result in Step 4(c);
2. fill in the Multiple Jobs Worksheet on page 3;
3. if there are only two jobs in total, check box 2(c) on both W-4s.

The checkbox is the simplest. The worked example below shows why it matters.

Step 3: claim dependents

If your total income will be $200,000 or less ($400,000 married filing jointly), multiply the number of qualifying children under 17 by $2,200 and other dependents by $500. Two children and one other dependent gives $4,900. Payroll subtracts this amount from the year's withholding.

Step 4: other adjustments

4(a) Other income is yearly income that has no withholding, such as interest, dividends or retirement income. Self-employment income is better handled through Step 4(c), because it also carries self-employment tax.

4(b) Deductions comes from the Deductions Worksheet:

• Lines 1a–1c: qualified tips (up to $25,000), qualified overtime (up to $12,500, or $25,000 joint) and passenger-vehicle loan interest (up to $10,000).
• Lines 3a–3b: $6,000 for each person 65 or older.
• Line 5: adjustments such as student loan interest, deductible IRA contributions, educator expenses and alimony.
• Lines 6a–6e: itemized deductions, with state and local taxes capped at $40,400 ($20,200 married filing separately).
• Line 11: the standard deduction ($32,200, $24,150 or $16,100), which is subtracted because payroll already allows for it.
• Line 12: cash gifts to charity, up to $1,000 ($2,000 joint), if you take the standard deduction.
• Line 15: the total, which goes in Step 4(b).

4(c) Extra withholding is a flat amount added to each paycheck. It's the most direct lever: it doesn't depend on brackets, and it's the usual way to cover side income or fix a shortfall late in the year.

How payroll turns your W-4 into withholding

Most automated payroll systems use Worksheet 1A from IRS Publication 15-T (2026):

1. Annualize the paycheck (for example, × 26 for biweekly pay).
2. Add Step 4(a) and subtract Step 4(b).
3. Subtract $12,900 if married filing jointly or $8,600 otherwise, unless Step 2 is checked (then $0).
4. Look up the annual tax in the percentage-method table for your status (the Step 2 table if the box is checked).
5. Subtract Step 3, divide by the number of paychecks, and add Step 4(c).

(Table tax on [annual wages + 4(a) − 4(b) − line 1g] − Step 3) ÷ paychecks per year + 4(c) = income tax withheld

Example: on a $60,000 single salary paid biweekly with no adjustments, this gives $193.08 a paycheck.

The paycheck calculator runs this worksheet for any salary and W-4 settings, with state taxes included.

Two jobs or a working spouse: a worked example

A married couple filing jointly earns $60,000 and $40,000, with no children and the standard deduction. Their 2026 income tax is $7,640. Here's what the two employers withhold:

Without the checkbox, each job assumes it's the household's only income, and the couple ends up $4,020 short at tax time. Checking the box on both forms halves the brackets and drops the built-in allowance, and the total withheld matches the tax.

Big refund or bigger paycheck?

A refund is your own money coming back without interest. Aiming for a refund near zero puts more in every paycheck; a modest target refund gives a cushion for things you didn't predict, like a bonus or a little side income. The calculator lets you pick either. A balance due is fine too, as long as you stay within the safe harbors below, so you avoid a penalty.

One caution: credits and deductions only lower withholding if you put them on the W-4. Refundable credits like the EITC aren't part of the W-4 at all, so families who get them will still see a refund even with perfect withholding.

Mid-year checkup: fix it with the paychecks left

Late in the year, any fix has to be squeezed into fewer paychecks. Take a single worker paid biweekly on a $75,000 salary, with $12,000 of side-gig profit and no estimated payments. After 20 paychecks, $295.00 a paycheck has been withheld; 6 paychecks are left.

The earlier you adjust, the smaller the per-paycheck hit. In January, file a new W-4 with a lower Step 4(c) (or one sized to next year's side income) so you don't keep the catch-up amount running.

Withholding less: Step 4(b) mid-year

The reverse happens with new deductions. A single worker earning $52,000, including $4,000 of qualified overtime premium, is on track for a refund of $480 because payroll doesn't know about the overtime deduction. Filed in January, the Deductions Worksheet would simply carry $4,000 to Step 4(b). With only 6 paychecks left, the calculator suggests $17,333 in Step 4(b), because payroll annualizes each paycheck: the number has to be large enough to change 6 paychecks by the whole amount. Reset it to the full-year figure in January.

Avoiding the underpayment penalty

You generally won't owe an underpayment penalty if any of these is true:

• you owe less than $1,000 after withholding and refundable credits;
• withholding and estimated payments cover at least 90% of your 2026 tax;
• they cover at least 100% of your 2025 tax, or 110% if your 2025 AGI was over $150,000 ($75,000 married filing separately).

For people with a paycheck, extra W-4 withholding is often easier than estimated payments. If most of your income is self-employment, see the quarterly tax calculator.

Exempt status and when to file a new W-4

The 2026 form has a checkbox for claiming exemption from withholding. An exemption claimed for 2026 expires: to keep it, give your employer a new W-4 by February 16, 2027.

The IRS suggests a paycheck checkup if you:

• have more than one job, or a spouse who works;
• married, divorced, or had or adopted a child;
• claim credits or itemize deductions;
• have gig, freelance or investment income;
• owed tax or got a larger refund than expected last season.

The IRS's own Tax Withholding Estimator was updated in March 2026 for the new deductions. It takes about 25 minutes, needs recent pay stubs and isn't for nonresident aliens.

What this calculator doesn't cover

It estimates federal income tax withholding only. It doesn't cover state withholding, the alternative minimum tax, capital gains rates or education credits. The EITC is a formula estimate assuming investment income of $12,200 or less. It assumes one W-2 job for the person adjusting the form; for two jobs, use the Step 2 options above.

Common questions

What changed on the 2026 W-4?

Step 3 uses $2,200 per child, the Deductions Worksheet has 15 lines including tips, overtime, car-loan interest and the senior deduction, and exemption is claimed with a checkbox.

How much do I put in Step 3 for kids?

$2,200 per qualifying child under 17 and $500 per other dependent, if total income is $200,000 or less ($400,000 married filing jointly).

Should I check the Step 2 box?

Only if there are exactly two jobs in the household, and then on both W-4s. Payroll then skips the $12,900 / $8,600 allowance built into each job's withholding and uses narrower brackets.

Can my W-4 reflect no tax on tips or overtime?

Yes. Estimate qualified tips and overtime on lines 1a and 1b of the Deductions Worksheet and carry the total to Step 4(b). Your employer then withholds less each paycheck.

What does Step 4(c) do?

It adds a flat dollar amount of extra withholding to every paycheck. It's the simplest way to cover side income or a working spouse.

How do I get a bigger paycheck?

Make sure Step 3 and Step 4(b) include every credit and deduction you'll actually claim, and remove any extra Step 4(c) you no longer need. Don't under-withhold so far that you owe more than the safe harbors allow.

If I claimed exempt in 2026, when does it expire?

You need to give your employer a new W-4 by February 16, 2027 to keep it.

Sources

1. Form W-4 (2026), Employee's Withholding Certificate — Internal Revenue Service. Accessed October 13, 2026.
2. Publication 15-T (2026), Federal Income Tax Withholding Methods — Internal Revenue Service. Accessed October 13, 2026.
3. IRS releases 2026 Forms W-4, W-4P with changes due to OBBBA — PayrollOrg. Accessed October 13, 2026.
4. Tax Withholding Estimator — Internal Revenue Service. Accessed October 13, 2026.
5. Updated Tax Withholding Estimator lets millions of taxpayers take One Big Beautiful Bill changes into account (IR-2026-35) — Internal Revenue Service. Accessed October 13, 2026.
6. Topic no. 306, Penalty for underpayment of estimated tax — Internal Revenue Service. Accessed October 13, 2026.
7. Form 1040-ES (2026), Estimated Tax for Individuals — Internal Revenue Service. Accessed October 13, 2026.
8. Revenue Procedure 2025-32 (2026 inflation adjustments) — Internal Revenue Service. Accessed October 13, 2026.