The 2026 Form W-4, Employee’s Withholding Certificate, has been finalized by the IRS and incorporates changes due to the One Big Beautiful Bill Act (OBBBA).2 The form now spans five pages, including instructions, up from four in 2025, and features updated structures and values to align with new tax provisions.25 Key changes include an increase in the Child Tax Credit to $2,200 per qualifying child under age 17, while the credit for other dependents remains at $500.25 The form retains a split structure for dependent claims, with separate lines for qualifying children (Step 3(a)) and other dependents (Step 3(b)).2

Step 4, Other Adjustments, has been revised to remove the "Optional" label, and employees are now informed that skipping Step 4(b) will result in withholding based on the standard deduction.25 The Deductions Worksheet for Step 4(b) has been expanded to 15 lines and is now on its own page, including new lines for deductions such as "no tax on overtime" and "no tax on tips".35 Additionally, the form now includes a dedicated checkbox for claiming exemption from withholding, simplifying verification and year-end tracking.2

Employees must complete Form W-4 to ensure accurate federal income tax withholding from their pay, and a new form is required when personal or financial circumstances change.2 Those claiming exemption from withholding must meet two conditions: no federal income tax liability in 2025 and no expected liability in 2026.2 The exemption status expires at the end of 2026 unless a new Form W-4 is submitted.8 Employers are advised to update payroll systems, HRIS fields, and employee guidance to accommodate the expanded form and ensure compliance.2

For employees with multiple jobs or working spouses, the IRS recommends using the estimator at www.irs.gov/W4App or completing the Multiple Jobs Worksheet to ensure accurate withholding.2 The form is available for download from the IRS website and is effective for the 2026 tax year.2