@@ -6,7 +6,7 @@ author: theley502
66ms.topic : article
77ms.reviewer : jswymer
88ms.author : theley
9- ms.date : 1/16 /2026
9+ ms.date : 1/20 /2026
1010---
1111# U.S. 2026 Payroll Tax Update
1212
@@ -28,7 +28,7 @@ Check out these blogs for documentation on how you calculate payroll taxes in Mi
2828
2929[ Tips to install the U.S. Payroll Tax Update] ( https://community.dynamics.com/blogs/post/?postid=dbc1295b-297f-4441-aa2f-7c2502bffc97 )
3030
31- ## Changes in January Round 1 update
31+ ## Changes in January Round 2 update (Released 1/22/2026)
3232
3333- Arkansas
3434- Illinois
@@ -57,8 +57,8 @@ Tax Type rates for Filing Status NA:
5757
5858| If Over | But Not Over | Tax Amount | Tax Rate| On Excess Over|
5959| -------------| ------------------| ----------------| --------------| --------------------|
60- | 0 | 5,499 | 0 | 0.0% | 0 |
61- | 5,499 | 11,199 | -111.98 | 2.0% | 0 |
60+ | 0 | 5,599 | 0 | 0.0% | 0 |
61+ | 5,599 | 11,199 | -111.98 | 2.0% | 0 |
6262| 11,199 | 15,999 | -223.97 | 3.0% | 0 |
6363| 15,999 | 26,399 | -287.97 | 3.4% | 0 |
6464| 26,399 | 94,700 | -419.96 | 3.9% | 0 |
@@ -297,16 +297,16 @@ Withholding rates for taxpayers filing as *MAR*:
297297| 0 | 11,775 | 0 | 0% | 0 |
298298| 11,775 | 96,475 | 0 | 3.35% | 11,775 |
299299| 96,475 | 216,525 | 2,837.45 | 6.60% | 96,475 |
300- | 216,525 | 323,875 | 10,760.75 | 7.60% | 216,525 |
301- | 323,875 | And Over | 18,915.55 | 8.75% | 323,875 |
300+ | 216,525 | 323,825 | 10,760.75 | 7.60% | 216,525 |
301+ | 323,825 | And Over | 18,915.55 | 8.75% | 323,825 |
302302
303303Withholding rates for taxpayers filing as * SINGLE* :
304304
305305| If Over | But Not Over | Tax Amount| Tax Rate | On Excess Over |
306306| -------------| ------------------| ----------------| --------------| --------------------|
307307| 0 | 3,925 | 0 | 0% | 0 |
308308| 3,925 | 54,675 | 0 | 3.35% | 3,925 |
309- | 54,675 | 126,775 | 1,770 .13 | 6.60% | 54,675 |
309+ | 54,675 | 126,775 | 1,700 .13 | 6.60% | 54,675 |
310310| 126,775 | 260,225 | 6,458.73 | 7.60% | 126,775 |
311311| 260,225 | And Over | 16,600.93 | 8.75% | 260,225 |
312312
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