Illinois 2026 Tax Update

Effective January 1, 2026, the value of the state allowance increases from $2,850 to $2,925.

For more information, see the Illinois Withholding Tax Tables: 2026 Illinois Withholding Tax Tables

Louisiana 2026 Tax Updates

The updates for Louisiana are effective January 1, 2026: 

• The standard deductions increases to:

  • Single or Married-Separate: from $12,500 to $12,875.

  • Married-Joint, Qualified Surviving Spouse, or Head of Household: from $25,000 to $25,750.

 

For more information, see the Louisiana Emergency Rule: https://doa.louisiana.gov/media/0uafjmat/2601emr014.pdf

Maryland 2026 Tax Updates

The updates for Maryland are effective January 1, 2026: 

• Two Maryland counties adjusted their income tax rates for 2026:

  • Allegany County: from 3.03% to 3.20%.

  • ?Kent County: from 3.20% to 3.30%.

• The standard deduction increases from $3,350 to $3,400.

 

Percentage Method

Each local income tax percentage rate in the calculation for a jurisdiction either matches or closely approximates the listed local tax rate for that jurisdiction, without going below the actual tax rate.

Use the 2026 Maryland Income Tax Rates (Tax Guidance - Maryland Income Tax Rates and Brackets - Taxpayer Services) to find the proper calculation.

To begin, click on the jurisdiction where the employee lives.

For a lump sum distribution or annual bonus, select the jurisdiction and use the rate listed at the bottom of that page.

For employees who are not residents of Maryland, use the Nonresident link which does not include local tax. However, the calculation provides for the special nonresident tax, which is calculated using the lowest local tax rate in effect for the tax year.

For employees who are residents of Maryland, but are working in Delaware or other nonreciprocal states, use the link labeled Delaware. The calculation for the Delaware link includes the local tax and credit for income taxes paid to another state.

For more information, see the 2025 Maryland Income Tax Rates: Tax Guidance - Maryland Income Tax Rates and Brackets - Taxpayer Services.

Massachusetts 2026 Tax Update

Effective January 1, 2026, the inflation-adjusted threshold for the surtax increases from $1,083,150 to $1,107,750.

 

 

Michigan 2026 Tax Update

Effective January 1, 2026, the value of a state allowance increases from $5,800 to $5,900.

 

For more information, see the 2026 Michigan Income Tax Withholding Guide: 446 Michigan Income Tax Withholding Guide.

Minnesota 2026 Tax Updates

The updates for Minnesota are effective January 1, 2026: 

• The value of a state allowance increases from $5,200 to $5,300.

• The tax brackets used in the percentage method were adjusted.

Mississippi 2026 Tax Update

Effective January 1, 2026, the withholding tax rate decreases from 4.4% to 4.0%.

 

For more information, see the Computer Payroll Accounting for Periods in 2026: Computer Payroll Flowchart - updated 8-13-25.pdf.

North Carolina 2026 Tax Updates

The updates for North Carolina are effective January 1, 2026: 

• The withholding tax rate decreases from 4.35% to 4.09%.

• The supplemental tax rate decreases from 4.35% to 4.09%.

For more information, see the 2026 Income Tax Withholding Tables: https://www.ncdor.gov/income-tax-withholding-tables-and-instructions-employers/open.

North Dakota 2026 Tax Update

Effective January 1, 2026, the tax brackets for the percentage method have been adjusted.

 

Percentage Method Tables (Forms W-4 Before 2020)

 

Annual Percentage Method Tables (Forms W-4 for 2020 and after)

For more information, see the Income Tax Withholding Rates & Instructions: 2026-income-tax-withholding-rates-booklet.pdf.

Ohio 2026 Tax Update

Effective January 1, 2026, the supplemental tax rate decreases from 3.5% to 2.75%.

 

For more information, see the Ohio Employer Withholding: Employer Withholding | Department of Taxation.

Oregon 2026 Tax Updates

The updates for Oregon are effective January 1, 2026: 

• The federal tax adjustment amount for an employee with annual wages up to $50,000 increases from $8,500 to $8,750.

• The federal tax adjustment phase out amounts table for an employee with annual wages $50,000 or greater has changed in 2025.

• The tax table has changed for an employee with annual wages up to $50,000.

• The tax table has changed for an employee with annual wages $50,000 or higher.

• The allowance amount increased from $256 to $263.

• The standard deduction amount increases based on employee filing status:

  • “Single” with fewer than 3 allowances: from $2,835 to $2,910.

  • “Single” with 3 or more allowances: from $5,670 to $5,820

  • “Married”: from $5,670 to $5,820.

 

For more information, see the Oregon Withholding Tax Formulas: Oregon Withholdings Tax Formulas, 150-206-436.

SUTA Electronic Filing Vermont 2026 Tax Updates

Under Vermont’s new Unemployment Insurance system, ICESA will be the only file format accepted for SUTA quarterly reporting. The 80-byte formats (Format 1 and Format 2) and the SSA format will no longer be supported.

 

Regarding the rollout of the new system, Pat Ethier, UC Program Administrator, stated, “We do not have a firm go-live date yet. We are planning for spring/summer 2026.”

 

For more information, see the ICESA Format File Specifications and the UI Modernization Project.

Vermont 2026 Tax Updates

The updates for Vermont are effective January 1, 2026: 

• The value of a state allowance increases from $5,300 to $5,400.

• The tax brackets used in the percentage method were adjusted.

For more information, see the 2026 Income Tax Withholding Instructions: 2026 Income Tax Withholding Instructions, Tables, and Charts.

 

Under Vermont’s new Unemployment Insurance system, ICESA will be the only file format accepted for SUTA quarterly reporting. The 80-byte formats (Format 1 and Format 2) and the SSA format will no longer be supported.

 

Regarding the rollout of the new system, Pat Ethier, UC Program Administrator, stated, “We do not have a firm go-live date yet. We are planning for spring/summer 2026.”

 

For more information, see the ICESA Format File Specifications and the UI Modernization Project.

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