W-4 form 2026: how to fill out a W-4, step by step

Form W-4, the Employee’s Withholding Certificate, is the one-page IRS form every new employee fills out so their employer knows how much federal income tax to take out of each paycheck. Fill it out well and your withholding lands close to what you owe in April. Skip a step that applies to you, such as a second job or a working spouse, and you can end up with a tax bill. This guide follows the current 2026 W-4 from the Internal Revenue Service line by line, with worked examples, and then covers what employers must do with the form. You can download the official 2026 Form W-4 PDF on irs.gov.

What a W-4 form does

Your employer runs your W-4 entries through the withholding tables in IRS Publication 15-T to figure the federal income tax to hold back from each paycheck. The money goes to the IRS on your behalf, and your year-end Form W-2 shows the total. When you file your return, you get a refund if too much was withheld and owe the difference if too little was.

A few things the W-4 does not do:

• It does not change Social Security or Medicare tax. Those are a flat 6.2% and 1.45% of wages for 2026 (Social Security stops at the $184,500 wage base), no matter what you put on the form. You can see each one as its own line on your pay stub; our guide to reading a pay stub explains every line.
• It does not cover state income tax. Many states have their own form, covered below.
• It is not for contractors. Independent contractors fill out Form W-9 and get no withholding. If you are unsure which you are, read 1099 vs W-2 workers.

The form has not used “allowances” since the 2020 redesign. If someone tells you to “claim 0” or “claim 1”, that advice belongs to the old form. Today you enter dollar amounts for credits, other income, deductions and extra withholding instead.

The W-4 form 2026 and what changed

The current edition is the 2026 Form W-4, dated “Created 12/8/25” at the bottom of page 1, and it is the version the IRS lists on its About Form W-4 page today. It keeps the same five steps as recent years, but it reflects the 2025 tax law, Public Law 119-21, commonly called the One Big Beautiful Bill Act. The changes you will notice:

• Step 3 child amount: $2,200 per qualifying child under age 17. Other dependents stay at $500.
• New Deductions Worksheet lines (page 4): qualified tips up to $25,000; the “and-a-half” portion of qualified overtime up to $12,500 ($25,000 married filing jointly); qualified passenger vehicle loan interest up to $10,000; and $6,000 for each taxpayer or spouse aged 65 or older. Each line has an income limit printed on the worksheet.
• Standard deduction figures for 2026: $16,100 single or married filing separately, $24,150 head of household, and $32,200 married filing jointly.
• A cash charity line for non-itemizers: up to $1,000 ($2,000 married filing jointly) if you take the standard deduction.
• A higher state and local tax line: itemizers can enter up to $40,400 ($20,200 married filing separately), with an income limit.
• A Social Security number caution: you (and your spouse if filing jointly) need an SSN valid for employment to claim certain credits and deductions.

For employers, IRS Publication 15 (2026) says you must honor an updated W-4 that accounts for the overtime deduction, so the employee gets the benefit in each paycheck rather than waiting for a refund. Overtime pay is still subject to Social Security and Medicare tax.

What about 2027? As of November 4, 2026, the IRS has posted an early-release draft 2027 Form W-4 (created June 10, 2026). It keeps the same steps and the tips, overtime, vehicle interest and senior lines, but key dollar amounts, including the Step 3(a) child amount and the standard deduction, are still left blank, shown as “$X,XXX”. Draft forms are marked “do not file”. Keep using the 2026 form until the IRS releases the final 2027 version.

How to fill out a W-4, line by line

The IRS instructions are direct: complete Steps 2 to 4 only if they apply to you; otherwise, skip to Step 5. Here is every line of the form.

Step 1: Personal information

• 1(a) and 1(b): your name, address and Social Security number. Use the name on your Social Security card so your earnings are credited to you.
• 1(c) filing status: check one box. Single or Married filing separately; Married filing jointly or Qualifying surviving spouse; or Head of household, which is only for unmarried people who pay more than half the cost of keeping up a home for themselves and a qualifying individual. Your choice sets the standard deduction and tax brackets used for your withholding.

Step 2: Multiple jobs or spouse works

Use this step if you hold more than one job at a time, or you are married filing jointly and your spouse also works. Without it, each employer assumes its paycheck is your only income and withholds too little. Do one of these:

• 2(a): use the IRS Tax Withholding Estimator. This is the most accurate option and the one to use if either of you has self-employment income.
• 2(b): complete the Multiple Jobs Worksheet on page 3 and put the result in Step 4(c) on the form for the highest-paying job.
• 2(c): if there are only two jobs in total, check the box on both forms. This cuts the standard deduction and brackets in half for each job. The IRS says it is generally more accurate than 2(b) when the lower-paying job pays more than half of what the higher-paying job pays.

With more than one job, fill in Steps 3 through 4(b) on only one form, ideally the one for the highest-paying job. Leave them blank on the others.

Step 3: Claim dependent and other credits

If your total income will be $200,000 or less ($400,000 or less married filing jointly):

• 3(a): number of qualifying children under 17 × $2,200. The child must be under 17 on December 31, be your dependent, generally live with you more than half the year, and have the required SSN.
• 3(b): number of other dependents × $500, for example a 17-year-old, a college student or a parent you support.
• Step 3 total: add 3(a) and 3(b), plus an estimate of other credits you expect, such as education credits.

Every $1 in Step 3 cuts your yearly withholding by about $1, so it raises each paycheck and shrinks your refund.

Step 4: Other adjustments (optional)

• 4(a) other income: interest, dividends, retirement income or other income that has no withholding, if you want tax withheld on it from your paycheck instead of paying estimated tax. Do not include income from jobs or self-employment here.
• 4(b) deductions: the result from the Deductions Worksheet, line 15. Use it if you expect deductions beyond the basic standard deduction: itemized deductions, or the tips, overtime, car loan interest, senior, student loan interest and IRA deductions. Leave it blank and withholding assumes the standard deduction.
• 4(c) extra withholding: any additional dollar amount you want withheld each pay period, including the result from the Multiple Jobs Worksheet.

Step 5: Sign here

Sign and date. The form says plainly that it is not valid unless you sign it, under penalties of perjury. The “Employers only” box below is for the employer’s name and address, the first date of employment and the employer identification number (EIN).

Three W-4 examples with 2026 numbers

These examples use the 2026 form’s own figures. They are illustrations, not tax advice; your real numbers may differ.

Example 1: Single, one job, some overtime

Grace works one hourly job at $20 an hour, paid every two weeks, and files as single. She has no kids and no other income.

1. Step 1: her details, and she checks Single or Married filing separately.
2. Steps 2 and 3: skipped. One job, no dependents.
3. Step 4(b), optional: Grace expects about 5 overtime hours a week for 50 weeks, or 250 hours. Her overtime rate is $30, but only the “half” portion counts: 250 × $10 = $2,500. She enters $2,500 on Deductions Worksheet line 1b. With no itemized deductions, line 14 is $0, so line 15 is $2,500 and she writes $2,500 in Step 4(b).
4. Step 5: she signs.

If her top bracket is 12%, a $2,500 deduction is worth about $300 of tax for the year, or roughly $11.54 more in each of 26 paychecks. If she is unsure how much overtime she will work, she can estimate low or skip Step 4(b) and claim the deduction on her return. To see what the overtime itself pays, try our overtime calculator, and for how the regular rate works with bonuses, see how to calculate overtime.

Example 2: Married filing jointly, two jobs

Dana earns $55,000 a year, paid every two weeks. Her husband Luis earns $35,000 at another company. They file jointly and have no children.

Option 2(c): both check the Step 2(c) box on their forms. Luis’s pay ($35,000) is more than half of Dana’s ($27,500), so the IRS says this is generally the more accurate choice for them.

Option 2(b), the worksheet: in the Married Filing Jointly table on page 5, the “$50,000 to 59,999” row (Dana, higher-paying job) meets the “$30,000 to 39,999” column (Luis) at $3,990. Dana is paid 26 times a year, so $3,990 ÷ 26 = $153.46. She enters $153.46 in Step 4(c) of her form. Luis checks Married filing jointly, leaves Steps 2 to 4 blank, and signs.

Either way, the point is the same: two incomes push the couple into higher brackets than either employer sees on its own.

Example 3: Parent with dependents

Rosa is unmarried and pays more than half the cost of her home, where she lives with her two children, ages 6 and 10, and her mother, whom she can claim as a dependent. She earns $48,000 a year, paid every two weeks.

1. Step 1(c): Head of household.
2. Step 3(a): 2 children × $2,200 = $4,400.
3. Step 3(b): 1 other dependent × $500 = $500.
4. Step 3 total: $4,400 + $500 = $4,900.
5. Step 5: she signs.

Spread over 26 paychecks, $4,900 lowers her withholding by up to about $188.46 per check. Rosa’s income is well under the $200,000 limit, so she claims the full amounts. If she later took a second job, she would complete Step 2 and keep her Step 3 entry on only one form.

Claiming exempt from withholding

You can write “exempt” only if you meet both conditions on the 2026 form: you had no federal income tax liability in 2025, and you expect none in 2026. That usually means a student or part-time worker whose income is below the filing threshold. Owing nothing in April because enough was withheld does not count; your total tax has to be zero.

To claim it, check the box in the “Exempt from withholding” section, complete Steps 1(a), 1(b) and 5, and leave everything else blank. Keep in mind:

• The claim expires. An exempt claim is good only for the calendar year. IRS Publication 15 sets the renewal deadline at February 15; for this cycle, the 2026 form tells employees to submit a new W-4 by February 16, 2027. If no new form arrives, the employer starts withholding as if the employee checked single and made no other entries.
• No refund of the gap. If an employee renews late, the employer applies the new exempt form to future wages only and does not refund tax already withheld.
• Social Security and Medicare still apply. Exempt means no federal income tax withholding, not no payroll tax.
• Penalties. Claiming exempt when you do not qualify can leave you with tax and penalties at filing time, and the IRS says a false W-4 can carry a $500 penalty.

Note that “exempt from withholding” has nothing to do with being an “exempt” employee under wage-and-hour law. That is about overtime, and our exempt vs non-exempt guide explains it.

When to use the IRS Tax Withholding Estimator

The free IRS Tax Withholding Estimator at irs.gov/W4App asks about your pay, other income and credits, then tells you exactly what to enter on a new form. The form itself recommends it if you:

• are filling out the W-4 after the year has started, or will work only part of the year;
• had a change in marital status, number of jobs, dependents, deductions or credits;
• have dividends, capital gains, Social Security, bonuses or business income, or owe Additional Medicare Tax or Net Investment Income Tax;
• have self-employment income on top of a job; or
• want the most accurate result for two or more jobs.

Have your most recent pay stub ready, since the estimator needs the tax already withheld this year. One catch the IRS warns employers about: a W-4 tuned mid-year with the estimator can over- or under-withhold once it runs for a full calendar year. Rerun the estimator in early January and file a fresh form if the numbers change. That is a good time to check whether your tips or overtime estimate still fits your schedule.

Employer rules for the employee withholding certificate

The rules below come from IRS Publication 15 (2026), the Employer’s Tax Guide. They apply to every business with W-2 employees, from a single café to a multi-site operation.

• New hires: ask every new employee for a signed 2026 W-4 when they start, and use it from the first wage payment. If a new hire does not give you one, withhold as if they checked single or married filing separately and left Steps 2 to 4 blank. The W-4 sits alongside the I-9 in the stack of new hire paperwork; our I-9 form guide covers that one.
• Existing employees: an older certificate, including pre-2020 forms, stays in effect until the employee gives you a new one. You cannot make current staff refile, but you can encourage it.
• Timing of changes: start withholding under a replacement W-4 no later than the first payroll period ending on or after the 30th day after you receive it. Do not adjust earlier pay periods. A W-4 made out for next year does not take effect in the current year.
• Keep it on file: keep copies of these certificates with your employment tax records for at least four years. Do not mail them to the IRS. Send copies only if the IRS asks by notice or published guidance, and make the originals available for inspection if requested.
• Electronic W-4s are allowed. You may set up a system to receive the form electronically, following the requirements in Publication 15-T.
• Invalid forms: any unauthorized change or addition makes the form invalid, including crossing out the certification. So does a form that is clearly false when handed to you, for example “exempt” written in with entries in Steps 2 to 4. Do not use it. Tell the employee and ask for a new one; meanwhile withhold under their last valid form, or as single with no adjustments if there is none.
• No flat amounts: withholding must follow the W-4 entries. An employee cannot ask you to withhold only a fixed dollar amount or percentage, though they can add an extra amount in Step 4(c).
• Lock-in letters: if the IRS finds serious underwithholding, it may send you a lock-in letter that sets the employee’s filing status and withholding. Give the employee their copy within 10 business days, and start withholding under it for wages paid after the date in the letter. Ignore any later W-4 that would lower withholding below the letter; honor one that raises it.
• Substitute forms: your own version must match the official language and come with all the instructions and worksheets. You cannot accept a form an employee made up themselves.

Keeping all of this straight is easier when the W-4 lives in the same place as hours and pay. Our step-by-step guide to how to process payroll shows where withholding fits in each pay run.

State withholding forms differ

The federal W-4 covers federal income tax only. States with an income tax set their own withholding rules, and many have their own certificate:

• California: Form DE 4, Employee’s Withholding Allowance Certificate, from the Employment Development Department (EDD). It still uses allowances, and an employee who does not file one is withheld as single with zero allowances.
• New York: Form IT-2104, from the New York State Department of Taxation and Finance. It covers New York State, New York City and Yonkers withholding, and the department publishes a new edition for 2026.
• Illinois: Form IL-W-4, from the Illinois Department of Revenue. Without one, Illinois tax is withheld with no allowances.

States with no income tax on wages, such as Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming, have no state withholding form for income tax. A few states accept the federal form or have special rules, so check your state revenue department’s current forms before onboarding someone there. Hourly teams in California also face daily overtime, covered in our California overtime law guide.

Frequently asked questions