IRS Releases Final 2026 Form W-4: A Recap of the Updates

The IRS has revised Form W-4 for 2026, making the newly revised form available to employers during mid-December 2025.

The updated form incorporates several of the income tax provisions contained in the One Big Beautiful Bill Act (OBBBA), and it comes on the heels of proposed changes to the 2026 Form W-2.

Some OBBBA provisions can be found on Form W-4’s Deductions Worksheet, which has been expanded from a half page to a full page for 2026.

On that worksheet, on line 1, employees have the option to enter amounts for:

• Qualified tips
• Qualified overtime compensation – i.e., the “and-a-half” portion of time-and-a-half compensation, and
• Qualified passenger vehicle loan interest.

Line 3 allows seniors age 65 or older to enter $6,000 for themselves and $6,000 for eligible spouses.

Other Changes from IRS

Here’s what else is new on the 2026 Form W-4.

Step 3: The credit for qualifying children under age 17 can be claimed on line 3(a). It increased from $2,000 to $2,200, another provision of the OBBBA. On Line 3(b), a $500 credit for other dependents can be entered.

Step 4: The word “optional” has been removed from this step, which deals with other adjustments. You’ll see: line 4(a), other income (not from jobs); line 4(b), deductions; and line 4(c), extra withholding.

The IRS made changes to line 4(b), explaining to taxpayers that if they don’t enter any amount on that line, their withholding will be based on the standard deduction.

The 2026 form includes a new section directly under Step 4. It’s for individuals who are claiming they’re exempt from withholding for 2026.

They’ll no longer write “Exempt” in the space below this step.

Instead, they’ll tick a checkbox following this statement: “I claim exemption from withholding for 2026, and I certify that I meet both of the conditions for exemption for 2026. See Exemption from withholding on page 2. I understand I will need to submit a new Form W-4 for 2027.”

Overall, the form has increased from four pages to five pages for 2026.