W-4 guide (2026) | PaycheckByState

What the W-4 does

Form W-4 tells your employer how much federal income tax to withhold from each paycheck. It does not change your tax bill — it controls the size of your paychecks versus the size of your refund (or balance due) at tax time.

Since 2020 the form has no "allowances." Instead you provide your filing status, whether you have multiple jobs, credits for dependents and any other income, deductions or extra withholding. Employers feed those entries into the IRS percentage-method tables in Publication 15-T. The IRS says the 2026 Form W-4 was updated so that employees can account for the deduction for qualified overtime compensation.

Step 1: Personal information and filing status

Enter your name, address, Social Security number and filing status: single or married filing separately, married filing jointly, or head of household. Filing status selects the tax table your employer uses. Head of household withholds less than single at the same wage because of its larger standard deduction, but you may claim it only if you qualify.

Step 2: Multiple jobs or a working spouse

Complete this step only if you hold more than one job or you are married filing jointly and your spouse also works. Each employer treats your job as your only one, so combined withholding can come up short. You have three options:

Use the IRS Tax Withholding Estimator — the most accurate.
Use the Multiple Jobs Worksheet on the form and enter the result in Step 4(c).
Check the box in 2(c) — only if there are two jobs with similar pay. Do this on just one job's form.

Checking the box switches your employer to a table with a smaller standard deduction and narrower brackets, raising withholding.

Step 3: Claim dependents

Multiply the number of qualifying children under 17 by $2,200 and other dependents by $500, and add the two amounts. Married couples with two jobs should complete this step on one form only. The employer subtracts the total from your annual withholding, spreading the benefit across all paychecks.

Step 4: Other adjustments

4(a) Other income: income without withholding, such as interest, dividends or retirement income. Adds to withholding.
4(b) Deductions: if you expect to itemize or claim other deductions that exceed the standard deduction, enter the excess. Reduces withholding.
4(c) Extra withholding: a flat dollar amount withheld from every paycheck. Simple way to avoid owing money at tax time.

Step 5: Sign and date

Sign the form and give it to your employer. You do not send it to the IRS. Keep a copy for your records.

What each change does to a real paycheck

Example: a single filer earning $60,000, paid biweekly, in a state with no income tax. Numbers come from our calculator using the 2026 IRS tables.

W-4 entry	Federal tax / paycheck	Take-home / paycheck
Standard (no adjustments)	$193.08	$1,938.08
Step 2 box checked	$337.88	$1,793.27
Two children under 17 (Step 3: $4,400)	$23.85	$2,107.31
$25 extra withholding (Step 4c)	$218.08	$1,913.08

Test your own combination in the paycheck calculator's "Deductions & W-4 options" panel.

When to update your W-4

You married, divorced, or had a child.
You started a second job or your spouse began working.
You received a large raise, bonus or other income.
You got a very large refund or a surprise tax bill last year.
You expect to claim significant deductions or the new overtime or tips deductions.

The IRS Tax Withholding Estimator uses your latest pay stub to recommend the exact entries.

State withholding forms

Many states accept the federal W-4, but others require their own certificate — for example California's DE 4, New York's IT-2104, Maryland's MW507 and Georgia's G-4. States with no income tax need no state form. Each state page lists the form and links to it.

Frequently asked questions

Does the W-4 change how much tax I owe?

No. It only changes how much is withheld from each paycheck. Your actual tax is calculated when you file your return.

How do I get a bigger paycheck?

Enter dependents in Step 3, claim deductions in Step 4(b), and avoid extra withholding. Be careful: withholding too little can leave you owing tax and possibly penalties at filing time.

How do I get a bigger refund?

Add extra withholding in Step 4(c), check the Step 2 box if you have multiple jobs, or enter other income in Step 4(a).

What does claiming exempt mean?

You can claim exempt only if you had no federal income tax liability last year and expect none this year. Exempt status must be renewed each year.

How often should I update my W-4?

Whenever your life changes — marriage, a new child, a second job, a large raise, or a big refund or tax bill last year.