Federal withholding drastically more in 2026

Thank you for bringing this to our attention, 2CBmom.

I understand that an increase in federal withholding can be surprising. Let me explain why this change occurred with the recent payroll update and how it aligns with federal tax requirements for 2026.

The 2026 federal income tax withholding tables in Publication 15-T have been revised to incorporate changes introduced by P.L. 119-21, also known as the One Big Beautiful Bill Act. These changes include the permanent extension of individual tax rates and an increased standard deduction, as well as the permanent elimination of personal exemptions, all of which were originally established under the Tax Cuts and Jobs Act (P.L. 115-97).

Additionally, the IRS has updated the Nonresident Alien (NRA) withholding tables, which may result in adjusted federal tax withholdings for employees classified as nonresident aliens. Furthermore, the Social Security wage limit has increased from $176,100 to $184,500.

For more details about these changes, you can check out the following articles:

• Get latest payroll news and updates in QuickBooks Desktop Payroll
• 2026 Publication 15-T

If you have further questions, please let us know in the comments. We're here to help.