Updated November 7, 2026. Quick answer: The final 2026 Form W-4 changes three things an employee will notice. Step 3(a) multiplies qualifying children by $2,200 (it was $2,000 on the 2025 form) and other dependents move to their own line 3(b) at $500. The Step 4(b) Deductions Worksheet is rebuilt: it now has lines for qualified tips, overtime and passenger vehicle loan interest, a $6,000 senior line, itemized deduction lines including state and local taxes up to $40,400, and the 2026 standard deduction amounts. And claiming exemption from withholding is now a checkbox instead of writing the word Exempt.
Step 3 and the exemption box
| Item | 2025 form | 2026 form |
|---|---|---|
| Step 3(a) | “Multiply the number of qualifying children under age 17 by $2,000” | “Multiply the number of qualifying children under age 17 by $2,200” |
| Step 3(b) | Other dependents at $500 on the same block, with no separate line number | Line 3(b): “Multiply the number of other dependents by $500” |
| Step 3 total | Add the amounts above, and you may add other credits | “Add the amounts from Steps 3(a) and 3(b), plus the amount for other credits.” |
| Exemption from withholding | Write the word Exempt on the form below Step 4(c) | A box in an Exempt from withholding section: “I claim exemption from withholding for 2026” |
The rebuilt Step 4(b) Deductions Worksheet
| Item | 2025 form | 2026 form |
|---|---|---|
| Itemized deductions | Line 1: one estimate of itemized deductions from Schedule A | Lines 6a to 6e: medical, state and local taxes, mortgage interest, gifts to charities and other, added on line 7 |
| State and local taxes | Included in the single itemized estimate (the 2025 line mentions state and local taxes up to $10,000) | Line 6b: “enter state and local taxes paid up to $40,400 ($20,200 if married filing separately)” if total income is under $505,000 ($252,500 if married filing separately) |
| Qualified tips, overtime, vehicle loan interest | No such lines | Lines 1a, 1b and 1c: “an estimate of your qualified tips up to $25,000”, overtime up to $12,500 ($25,000 if married filing jointly) and vehicle loan interest up to $10,000 |
| Seniors age 65 or older | No such line | Lines 3a and 3b: “Enter $6,000 if you are age 65 or older before the end of the year” when total income is under $75,000 ($150,000 if married filing jointly) |
| Standard deduction | Line 2: $30,000 married filing jointly or qualifying surviving spouse, $22,500 head of household, $15,000 single or married filing separately | Line 11: “$32,200 if you’re married filing jointly or a qualifying surviving spouse”, $24,150 head of household, $16,100 single or married filing separately |
| Cash gifts with the standard deduction | No such line | Line 12: “If you take the standard deduction, enter cash contributions up to $1,000” ($2,000 if married filing jointly) |
| Result | Line 5, to Step 4(b) | Line 15, to Step 4(b) |
The state and local tax amounts on line 6b are the 2026 results of a formula in the statute. Section 164(b)(7) of the Code, as added by Public Law 119-21, reads “in the case of any taxable year beginning in calendar year 2026, $40,400” and gives the income threshold as “in the case of any taxable year beginning in calendar year 2026, $505,000”, and for later years “101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year”. Recomputed: $40,000 x 1.01 = $40,400 and $500,000 x 1.01 = $505,000, and the married filing separately halves are $20,200 and $252,500.
The worksheet’s deduction lines point to the Schedule 1-A instructions for eligibility. See Schedule 1-A 2026 changes for how that schedule is laid out.
Two more changes on the form
The 2026 form adds a caution on page 1, under the Step 1(c) filing status boxes: “Caution: To claim certain credits or deductions on your tax return, you (and/or your spouse if married filing jointly) are required to have a social security number valid for employment.” The 2025 form printed no such caution. In the worksheet, line 3b is the spouse’s senior line: “Enter $6,000 if your spouse is age 65 or older before the end of the year and has a social security number valid for employment”.
What this page cannot tell you
- This page does not state the Step 2(c) multiple jobs tables, whose amounts changed between the two years; read those from the form.
- A worksheet estimate is not a tax calculation, and the form cannot say whether you qualify for a deduction.
- The Form W-4 instructions on page 2 were not described beyond the items above.
Edition
This page compares the final 2026 Form W-4 (created December 8, 2025) with the final 2025 Form W-4, retrieved on November 7, 2026. The 2026 documents compared are final releases, but the instructions that go with them were not among the documents read, so the reporting rules behind each box are not described here.
Common mistakes
- Using $2,000 per child on a 2026 Form W-4. The final 2026 form prints $2,200.
- Writing the word Exempt to claim exemption. The 2026 form has a box in its own section.
- Filling the 2025 worksheet’s old line 2 with $30,000, $22,500 or $15,000. The 2026 worksheet uses the 2026 standard deduction amounts on line 11.
Related: Form W-4, W-4 deductions worksheet, and Form W-4 Step 3 worksheet.
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Answer againSources
- IRS Form W-4 for tax year 2026 (final, irs.gov/pub/irs-prior): irs.gov (PDF)
- IRS Form W-4 for tax year 2025 (final, irs.gov/pub/irs-prior): irs.gov (PDF)
- Public Law 119-21 (enrolled text, U.S. Government Publishing Office): govinfo.gov (web page)
Read from the documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.