From 6dac22b2d9ccf942da697e39b92e787547761042 Mon Sep 17 00:00:00 2001 From: Terry Heley <43243051+theley502@users.noreply.github.com> Date: Tue, 10 Feb 2026 10:19:11 -0600 Subject: [PATCH 1/2] Revise tax update details and add Maryland changes Updated the date to 2/10/2026 and revised the tax update number to the third update for 2026. Added details about Maryland's withholding changes and standard deduction adjustments. --- dynamics-gp/payroll/US19JanTaxR1.md | 28 ++++++++++++++++++++++++++-- 1 file changed, 26 insertions(+), 2 deletions(-) diff --git a/dynamics-gp/payroll/US19JanTaxR1.md b/dynamics-gp/payroll/US19JanTaxR1.md index 62a37bfe..9dc2ecdc 100644 --- a/dynamics-gp/payroll/US19JanTaxR1.md +++ b/dynamics-gp/payroll/US19JanTaxR1.md @@ -6,7 +6,7 @@ author: theley502 ms.topic: article ms.reviewer: jswymer ms.author: theley -ms.date: 1/28/2026 +ms.date: 2/10/2026 --- # U.S. 2026 Payroll Tax Update @@ -16,7 +16,7 @@ This tax update applies to: This article provides guidance for how to install the 2026 U.S. Payroll Tax Update for Microsoft Dynamics GP and describes changes. -This is the second tax update for 2026 and replaces all previous tax updates. It includes State tax table changes that take effect January 1, 2026. +This is the third tax update for 2026 and replaces all previous tax updates. It includes State tax table changes that take effect January 1, 2026. This document assumes that you are familiar with the Microsoft Dynamics GP U.S. Payroll module. @@ -28,6 +28,30 @@ Check out these blogs for documentation on how you calculate payroll taxes in Mi [Tips to install the U.S. Payroll Tax Update](https://community.dynamics.com/blogs/post/?postid=dbc1295b-297f-4441-aa2f-7c2502bffc97) +## Changes in February Round 3 update (Target Release 2/27/2026) + +- Maryland + +### Withholding changes for Maryland + +For each Filing Status of Maryland: +The state of Maryland changed its payroll tax standard deduction from a percentage-based calculation to a flat amount of $3,400 for all filing status. + +For Filing Status of ALGENY (Allegany). +Withholding rates for taxpayer: + +| If Over | But Not Over | Tax Amount | Tax Rate | On Excess Over | +|-------------|------------------|----------------|--------------|--------------------| +| 0 | 100,000 | 0 | 7.95% | 0 | +| 100,000 | 125,000 | 7,950 | 8.20% | 100,000 | +| 125,000 | 150,000 | 10,000 | 8.45% | 125,000 | +| 150,000 | 250,000 | 12,112.50 | 8.70% | 150,000 | +| 250,000 | 500,000 | 20,812.50 | 8.95% | 250,000 | +| 500,000 | 1,000,000 | 43,187.50 | 9.45% | 500,000 | +| 1,000,000 | And over | 90,437.50 | 9.70% | 1,000,000 | + + + ## Changes in January Round 2 update (Released 1/22/2026) - Arkansas From 2b2c5cca88afa369e2e980b891f2ab2d442732d1 Mon Sep 17 00:00:00 2001 From: Terry Heley <43243051+theley502@users.noreply.github.com> Date: Thu, 12 Feb 2026 14:10:46 -0600 Subject: [PATCH 2/2] Update US19JanTaxR1.md --- dynamics-gp/payroll/US19JanTaxR1.md | 45 +++++++++++++++++++++++++++-- 1 file changed, 43 insertions(+), 2 deletions(-) diff --git a/dynamics-gp/payroll/US19JanTaxR1.md b/dynamics-gp/payroll/US19JanTaxR1.md index 9dc2ecdc..d2f6db5e 100644 --- a/dynamics-gp/payroll/US19JanTaxR1.md +++ b/dynamics-gp/payroll/US19JanTaxR1.md @@ -6,7 +6,7 @@ author: theley502 ms.topic: article ms.reviewer: jswymer ms.author: theley -ms.date: 2/10/2026 +ms.date: 2/12/2026 --- # U.S. 2026 Payroll Tax Update @@ -42,7 +42,8 @@ Withholding rates for taxpayer: | If Over | But Not Over | Tax Amount | Tax Rate | On Excess Over | |-------------|------------------|----------------|--------------|--------------------| -| 0 | 100,000 | 0 | 7.95% | 0 | +| 0 | 5,000 | 0 | 0% | 0 | +| 5,000 | 100,000 | 0 | 7.95% | 5,000 | | 100,000 | 125,000 | 7,950 | 8.20% | 100,000 | | 125,000 | 150,000 | 10,000 | 8.45% | 125,000 | | 150,000 | 250,000 | 12,112.50 | 8.70% | 150,000 | @@ -50,7 +51,47 @@ Withholding rates for taxpayer: | 500,000 | 1,000,000 | 43,187.50 | 9.45% | 500,000 | | 1,000,000 | And over | 90,437.50 | 9.70% | 1,000,000 | +For Filing Status of ALMAR (Allegany) +Withholding rates for taxpayer: + +| If Over | But Not Over | Tax Amount | Tax Rate | On Excess Over | +|-------------|------------------|----------------|--------------|--------------------| +| 0 | 5,000 | 0 | 0% | 0 | +| 5,000 | 150,000 | 0 | 7.95% | 5,000 | +| 150,000 | 175,000 | 11,925 | 8.20% | 150,000 | +| 175,000 | 225,000 | 13,975 | 8.45% | 175,000 | +| 225,000 | 300,000 | 18,200 | 8.70% | 225,000 | +| 300,000 | 600,000 | 24,725 | 8.95% | 300,000 | +| 600,000 | 1,200,000 | 51,575 | 9.45% | 600,000 | +| 1,200,000 | And over | 108,275 | 9.70% | 1,200,000 | +For Filing Status of KENT +Withholding rates for taxpayer: + +| If Over | But Not Over | Tax Amount | Tax Rate | On Excess Over | +|-------------|------------------|----------------|--------------|--------------------| +| 0 | 5,000 | 0 | 0% | 0 | +| 5,000 | 100,000 | 0 | 8.05% | 5,000 | +| 100,000 | 125,000 | 8,050 | 8.30% | 100,000 | +| 125,000 | 150,000 | 10,125 | 8.55% | 125,000 | +| 150,000 | 250,000 | 12,262.50 | 8.80% | 150,000 | +| 250,000 | 500,000 | 21,062.50 | 9.05% | 250,000 | +| 500,000 | 1,000,000 | 43,687.50 | 9.55% | 500,000 | +| 1,000,000 | And over | 91,437.50 | 9.80% | 1,000,000 | + +For Filing Status of KNMAR +Withholding rates for taxpayer: + +| If Over | But Not Over | Tax Amount | Tax Rate | On Excess Over | +|-------------|------------------|----------------|--------------|--------------------| +| 0 | 5,000 | 0 | 0% | 0 | +| 5,000 | 150,000 | 0 | 8.05% | 5,000 | +| 150,000 | 175,000 | 12,075 | 8.30% | 150,000 | +| 175,000 | 225,000 | 14,150 | 8.55% | 175,000 | +| 225,000 | 300,000 | 18,425 | 8.80% | 225,000 | +| 300,000 | 600,000 | 25,025 | 9.05% | 300,000 | +| 600,000 | 1,200,000 | 52,175 | 9.55% | 600,000 | +| 1,200,000 | And over | 109,475 | 9.80% | 1,200,000 | ## Changes in January Round 2 update (Released 1/22/2026)