Form W-4 tells your employer how much federal income tax to take out of each paycheck. Get it close and your refund or balance due in April is small. Leave it untouched after a big life change and either side can run into the thousands.
By Amara Taylor
How do I change my tax withholding? Fill in a new Form W-4 and give it to your employer, usually through the payroll or HR portal. You do not file it with the IRS. The IRS suggests checking your withholding each year and whenever your situation changes, and its Tax Withholding Estimator can fill in the form for you.
Only Steps 1 and 5 are required. Every other step changes how much is withheld, so leaving one blank is a choice too.
| Step | What you enter | Effect on each paycheck |
|---|---|---|
| 1. Personal information | Name, address, SSN and filing status | Sets which standard deduction and rates payroll uses |
| 2. Multiple jobs or spouse works | One of three options: the IRS estimator, the Multiple Jobs Worksheet, or a checkbox if there are only two jobs | Raises withholding so two incomes are not each taxed as if they were the only one |
| 3. Dependents and credits | $2,200 per child under 17 and $500 per other dependent, if income is $200,000 or less ($400,000 joint) | Lowers withholding |
| 4(a). Other income | Interest, dividends or retirement income with no tax withheld | Raises withholding |
| 4(b). Deductions | Result of the Deductions Worksheet, which now includes tips, overtime, car loan interest and the senior deduction | Lowers withholding |
| 4(c). Extra withholding | A dollar amount per paycheck | Raises withholding by exactly that amount |
| 5. Sign | Signature and date | The form is not valid without it |
Amounts and limits from the 2026 Form W-4 published by the IRS. Complete Steps 3 to 4(b) on one W-4 only, ideally the highest-paying job.
Use Step 2 on both W-4s. The checkbox works when there are exactly two jobs of similar pay; otherwise the estimator or worksheet is more accurate.
Same as a second job when you file jointly. Without Step 2, each employer withholds as if its salary were your household’s only income.
Add the child in Step 3. That alone lowers withholding by up to $2,200 over the year, as long as your tax is at least that much.
Add the expected tax in Step 4(c), or make quarterly estimated payments. The IRS points people with self-employment income to its estimator.
Change the filing status in Step 1(c), then recheck Steps 2 and 3. Status alone shifts the standard deduction used for withholding.
Too much was withheld. Check Step 4(c) for an old extra amount you no longer need, and make sure Step 3 lists every dependent.
If an estimate shows you will owe at filing time, spread the gap over the paychecks left in the year and put that figure in Step 4(c).
Say it is mid-October, you are paid every two weeks with six paydays left, and an estimate shows a $1,300 balance due. $1,300 ÷ 6 = $216.67, so you would enter $217 in Step 4(c). In January, file a new W-4 that removes the extra amount, or that money keeps coming out all of next year.
Check the next pay stub or two to confirm the change has gone through, because the new form takes effect from a later payroll, not instantly. To see the effect on your take-home pay first, calculate your take-home pay with and without the extra amount.
You can write “Exempt” on a 2026 W-4 only if you owed no federal income tax for 2025 and expect to owe none for 2026. An exemption lasts for one year. To keep it, you must give your employer a new W-4 by February 16, 2027. Claiming it when you do not qualify means nothing is withheld and the full tax comes due at filing.
Withholding is a prepayment, not your tax bill. Your return works out the real tax for the year and compares it with what was withheld. For how that comparison is made, read how to estimate your tax refund before you file, or put your year-to-date figures into the tax refund calculator.
Enter your salary, dependents and any extra withholding to see take-home pay per paycheck.
Open the paycheck calculatorThis guide is general information, not tax advice. Sources: 2026 Form W-4, IRS: About Form W-4, IRS Tax Withholding Estimator. Figures last checked October 13, 2026. See our calculation methods and sources and our editorial standards.
Last updated: October 13, 2026 · Written by Amara Taylor, Content Lead, Anchor AI Tools.