Calculate your W-4 withholding for 2026. Get recommended Step 3 and Step 4 values, estimated tax liability, per-paycheck take-home pay, and tax bracket breakdown.
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The W-4 form tells your employer how much federal income tax to withhold from your paycheck. Getting it right means avoiding a surprise tax bill in April or lending the government an interest-free loan through an unnecessarily large refund. Our W-4 calculator uses 2026 tax brackets, standard deduction amounts updated by the One Big Beautiful Bill Act, and current child tax credit values to calculate the optimal values for Steps 3 and 4 of your W-4 form. Simply enter your filing status, income, and dependents to see exactly what to put on your W-4 — plus a full breakdown of your federal tax liability, per-paycheck withholding, and take-home pay.
Form W-4 (Employee’s Withholding Certificate) is an IRS form you submit to your employer to determine how much federal income tax to withhold from each paycheck. Redesigned in 2020 to replace the old allowances system, the current W-4 uses a straightforward five-step process: Step 1 covers your personal information and filing status, Step 2 handles multiple jobs or a working spouse, Step 3 claims dependent credits ($2,000 per qualifying child under 17 and $500 per other dependent), Step 4 allows additional adjustments for other income, extra deductions, and voluntary extra withholding, and Step 5 is your signature. Your employer uses this information along with IRS Publication 15-T tax tables to calculate the correct federal withholding amount for each pay period. The goal is to match your total annual withholding to your actual tax liability so you neither owe a large balance nor receive an oversized refund when you file your return.
Federal Tax Formula
Federal Tax = Σ(Income in Bracket × Rate) − CreditsUnder-withholding means you could owe the IRS thousands when you file your return, potentially with underpayment penalties on top. A W-4 calculator estimates your actual tax liability and ensures your withholding covers it, so you are never caught off guard in April.
Over-withholding gives the government an interest-free loan from your money all year. By calculating the right withholding amount, you can keep more money in each paycheck to invest, pay down debt, or build your emergency fund — without risking a tax bill.
If you or your spouse hold multiple jobs, the standard withholding tables can significantly under-withhold because each employer only accounts for one income. A W-4 calculator combines all income sources and tells you the exact Step 4(c) extra withholding needed on the higher-paying job.
Understanding which federal tax brackets your income falls into helps you make smarter financial decisions about retirement contributions, charitable donations, and income timing. Our calculator shows exactly how much of your income is taxed at each rate from 10% to 37%.
Tax brackets, standard deductions, and credit amounts change every year due to inflation adjustments and new legislation. Our calculator uses the latest 2026 values including changes from the One Big Beautiful Bill Act, so your W-4 reflects current law rather than outdated numbers.
Instead of guessing what to write on your W-4, this calculator provides specific dollar amounts for Step 3 (dependent credits), Step 4(a) (other income), Step 4(b) (deductions above standard), and Step 4(c) (extra per-paycheck withholding). Just transfer the numbers directly to your form.
When you begin a new position, your employer hands you a blank W-4. Rather than guessing, use the calculator to determine the correct values based on your expected annual income, filing status, and dependents so your withholding is accurate from day one.
Getting married, having a baby, getting divorced, or buying a home all change your tax situation significantly. Each event can shift your filing status, available credits, and deduction amounts. Recalculate your W-4 after any major life event to avoid under- or over-withholding.
In October or November, review your year-to-date withholding against your projected annual tax liability. If you are on track for a large refund, you may want to reduce withholding for the remaining pay periods to boost your take-home pay. If you are under-withheld, increase it to avoid penalties.
When you or your spouse hold two or more jobs simultaneously, the default withholding on each job assumes it is your only income source. This frequently leads to significant under-withholding. The calculator combines all income sources and determines the additional withholding needed.
If you prefer having the most money available in each paycheck rather than receiving a large refund, use the Paycheck Impact mode to find the break-even withholding amount. This is particularly useful for people who want to invest the difference or pay off high-interest debt throughout the year.
The IRS can charge penalties if you owe more than $1,000 when you file and your withholding did not meet safe harbor rules (paying at least 90% of the current year tax or 100% of the prior year tax). Use the calculator to verify your withholding meets these thresholds.
The 2026 W-4 has five steps. Step 1: Enter your personal information and select your filing status. Step 2: Check the box if you have multiple jobs or your spouse also works. Step 3: Enter the dollar amount of your dependent credits ($2,000 per child under 17, $500 per other dependent). Step 4: Optionally enter other income not from jobs (4a), deductions above the standard amount (4b), and any extra per-paycheck withholding (4c). Step 5: Sign and date the form. Our calculator provides the exact dollar amounts for Steps 3 and 4.
The W-4 no longer uses allowances (0 or 1). Since the 2020 redesign, the form uses dollar amounts for credits and adjustments instead. If you see advice about claiming 0 or 1, it refers to the old form. On the current W-4, you enter specific dollar amounts: your dependent credits in Step 3, and any additional adjustments in Step 4. Our calculator determines these exact amounts for your situation.
Your W-4 directly determines how much federal income tax your employer withholds from each paycheck. More credits in Step 3 or more deductions in Step 4(b) means less tax withheld, resulting in a larger paycheck but potentially owing tax when you file. More extra withholding in Step 4(c) means a smaller paycheck but a larger refund. The ideal W-4 results in withholding that closely matches your actual tax liability.
Step 3 is where you claim tax credits for qualifying dependents. For 2026, you can claim $2,000 for each qualifying child under age 17 and $500 for each other dependent (such as children 17 or older, elderly parents you support, or other qualifying relatives). Multiply the number of dependents by the applicable credit amount and enter the total. These credits are subject to income-based phase-outs starting at $200,000 for single filers or $400,000 for married filing jointly.
You should review your W-4 at least once a year, ideally in January when new tax brackets take effect. You should also update it whenever you experience a major life event such as getting married or divorced, having or adopting a child, starting or losing a second job, or your spouse starting or stopping work. Buying a home with a mortgage can also change your deduction situation. There is no limit to how many times you can submit a new W-4 to your employer.
If you do not submit a Form W-4 to your employer, they are required to withhold federal income tax as if you are a single filer with no other adjustments. This is typically the highest withholding rate, meaning your paychecks will be smaller than necessary and you will likely receive a large refund when you file. While this avoids owing taxes, it means you are giving the government an interest-free loan all year.
Yes, you can submit a new W-4 to your employer at any time. There is no limit on the number of times you can update it. Most employers process W-4 changes within one to two pay periods. This flexibility is useful for mid-year adjustments — for example, if you receive a large bonus, have a baby, or realize your withholding is significantly off track. Some employers offer online W-4 updates through their payroll portal.
A W-4 and W-2 serve opposite purposes. The W-4 (Employee’s Withholding Certificate) is a form you give to your employer to tell them how much federal tax to withhold from your paychecks. The W-2 (Wage and Tax Statement) is a form your employer gives to you at the end of the year reporting your total wages and the total taxes that were actually withheld. You use your W-2 to file your tax return, and your W-4 determines what those W-2 withholding amounts will be.