{
  "$comment": "US federal payroll rules for tax year 2026 (annual liability for a full-year employee). Values from IRS Rev. Proc. 2025-32 (incl. OBBBA amendments), Pub 15 (2026), Pub 15-B (2026), Pub 505 (2026), Notice 2025-67, Rev. Proc. 2025-19, Schedule 8812 / 1-A and Form 8959 instructions.",
  "country": "us",
  "jurisdiction": "us",
  "taxYear": "2026",
  "period": { "start": "2026-01-01", "end": "2026-12-31", "tz": "America/New_York" },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "brackets": {
        "single": [
          { "upTo": "12400", "rate": "0.10" }, { "upTo": "50400", "rate": "0.12" }, { "upTo": "105700", "rate": "0.22" },
          { "upTo": "201775", "rate": "0.24" }, { "upTo": "256225", "rate": "0.32" }, { "upTo": "640600", "rate": "0.35" },
          { "upTo": null, "rate": "0.37" }
        ],
        "mfj": [
          { "upTo": "24800", "rate": "0.10" }, { "upTo": "100800", "rate": "0.12" }, { "upTo": "211400", "rate": "0.22" },
          { "upTo": "403550", "rate": "0.24" }, { "upTo": "512450", "rate": "0.32" }, { "upTo": "768700", "rate": "0.35" },
          { "upTo": null, "rate": "0.37" }
        ],
        "mfs": [
          { "upTo": "12400", "rate": "0.10" }, { "upTo": "50400", "rate": "0.12" }, { "upTo": "105700", "rate": "0.22" },
          { "upTo": "201775", "rate": "0.24" }, { "upTo": "256225", "rate": "0.32" }, { "upTo": "384350", "rate": "0.35" },
          { "upTo": null, "rate": "0.37" }
        ],
        "hoh": [
          { "upTo": "17700", "rate": "0.10" }, { "upTo": "67450", "rate": "0.12" }, { "upTo": "105700", "rate": "0.22" },
          { "upTo": "201750", "rate": "0.24" }, { "upTo": "256200", "rate": "0.32" }, { "upTo": "640600", "rate": "0.35" },
          { "upTo": null, "rate": "0.37" }
        ]
      }
    },
    "standardDeduction": {
      "basic": { "single": "16100", "mfj": "32200", "mfs": "16100", "hoh": "24150" },
      "additionalAged": { "married": "1650", "unmarried": "2050" }
    },
    "seniorDeduction": {
      "perSenior": "6000",
      "eligible": { "single": true, "mfj": true, "mfs": false, "hoh": true },
      "phaseout": {
        "single": { "threshold": "75000", "rate": "0.06", "floor": "0" },
        "mfj": { "threshold": "150000", "rate": "0.06", "floor": "0" },
        "mfs": { "threshold": "75000", "rate": "0.06", "floor": "0" },
        "hoh": { "threshold": "75000", "rate": "0.06", "floor": "0" }
      }
    },
    "tipsDeduction": {
      "cap": { "single": "25000", "mfj": "25000", "mfs": "25000", "hoh": "25000" },
      "eligible": { "single": true, "mfj": true, "mfs": false, "hoh": true },
      "phaseout": {
        "single": { "threshold": "150000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } },
        "mfj": { "threshold": "300000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } },
        "mfs": { "threshold": "150000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } },
        "hoh": { "threshold": "150000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } }
      }
    },
    "overtimeDeduction": {
      "cap": { "single": "12500", "mfj": "25000", "mfs": "12500", "hoh": "12500" },
      "eligible": { "single": true, "mfj": true, "mfs": false, "hoh": true },
      "phaseout": {
        "single": { "threshold": "150000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } },
        "mfj": { "threshold": "300000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } },
        "mfs": { "threshold": "150000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } },
        "hoh": { "threshold": "150000", "rate": "0.1", "floor": "0", "reductionRounding": { "unit": "100", "mode": "down" } }
      }
    },
    "childTaxCredit": {
      "perChild": "2200",
      "perOtherDependent": "500",
      "phaseout": {
        "single": { "threshold": "200000", "rate": "0.05", "floor": "0", "reductionRounding": { "unit": "50", "mode": "up" } },
        "mfj": { "threshold": "400000", "rate": "0.05", "floor": "0", "reductionRounding": { "unit": "50", "mode": "up" } },
        "mfs": { "threshold": "200000", "rate": "0.05", "floor": "0", "reductionRounding": { "unit": "50", "mode": "up" } },
        "hoh": { "threshold": "200000", "rate": "0.05", "floor": "0", "reductionRounding": { "unit": "50", "mode": "up" } }
      },
      "refundable": { "perChildMax": "1700", "earnedIncomeThreshold": "2500", "rate": "0.15", "partIIBMinChildren": 3 }
    },
    "fica": {
      "socialSecurity": { "rate": "0.062", "employerRate": "0.062", "wageBase": "184500" },
      "medicare": { "rate": "0.0145", "employerRate": "0.0145" },
      "additionalMedicare": {
        "rate": "0.009",
        "liabilityThreshold": { "single": "200000", "mfj": "250000", "mfs": "125000", "hoh": "200000" },
        "withholdingThreshold": "200000"
      }
    },
    "futa": { "netRate": "0.006", "wageBase": "7000" },
    "limits": {
      "electiveDeferral": "24500",
      "catchUp50": "8000",
      "catchUp60to63": "11250",
      "gov457Deferral": "24500",
      "hsaSelf": "4400",
      "hsaFamily": "8750",
      "hsaCatchUp55": "1000",
      "healthFsa": "3400",
      "dependentCareFsa": { "single": "7500", "mfj": "7500", "mfs": "3750", "hoh": "7500" }
    }
  },
  "rounding": { "unit": "0.01", "mode": "halfUp", "stage": "perLine" },
  "knownCliffs": [
    { "id": "ctc-phaseout-step", "field": "params.childTaxCredit.phaseout", "description": "The child tax credit falls by $50 for each $1,000 (or part of $1,000) of MAGI over the threshold, so net pay can dip by up to $50 when MAGI crosses a $1,000 step." },
    { "id": "obbba-deduction-steps", "field": "params.tipsDeduction.phaseout", "description": "The tips and overtime deductions fall by $100 for each whole $1,000 of MAGI over $150,000 ($300,000 joint), so taxable income jumps by $100 at each $1,000 step." }
  ],
  "notModelled": [
    "Itemized deductions (the standard deduction is always used)",
    "Alternative minimum tax, net investment income tax, self-employment tax",
    "Earned income credit and other federal credits beyond the child tax credit / credit for other dependents",
    "Multiple jobs and a working spouse's wages (MFJ assumes one earner)",
    "Additional standard deduction for blindness",
    "Income other than wages; dependants' SSN/eligibility tests are assumed met",
    "W-4 withholding for the pay period (results are annual liability)"
  ],
  "sources": [
    { "field": "period", "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32 — items for taxable years beginning in 2026 (calendar year)", "retrieved": "2026-10-07" },
    { "field": "params.incomeTax.brackets", "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32 §4.01 Tax Rate Tables 1–4", "retrieved": "2026-10-07" },
    { "field": "params.incomeTax.brackets", "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IRS newsroom: 2026 inflation adjustments incl. OBBBA", "retrieved": "2026-10-07" },
    { "field": "params.standardDeduction", "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32 §4.14 Standard deduction (basic; aged or blind)", "retrieved": "2026-10-07" },
    { "field": "params.seniorDeduction", "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Pub 505 (2026) — enhanced deduction for seniors ($6,000; 6% over $75,000/$150,000; MFJ required if married)", "retrieved": "2026-10-07" },
    { "field": "params.seniorDeduction", "url": "https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf", "title": "Schedule 1-A (Form 1040) Part V", "retrieved": "2026-10-07" },
    { "field": "params.tipsDeduction", "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Pub 505 (2026) — deduction for qualified tips (up to $25,000) for 2026", "retrieved": "2026-10-07" },
    { "field": "params.tipsDeduction", "url": "https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf", "title": "Schedule 1-A (Form 1040) Part II lines 7–13 (phase-out $100 per whole $1,000 over $150,000/$300,000)", "retrieved": "2026-10-07" },
    { "field": "params.overtimeDeduction", "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Pub 505 (2026) — deduction for qualified overtime ($12,500; $25,000 MFJ) for 2026", "retrieved": "2026-10-07" },
    { "field": "params.overtimeDeduction", "url": "https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf", "title": "Schedule 1-A (Form 1040) Part III lines 15–21", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.perChild", "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32 §4.05(1) maximum child tax credit $2,200", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.refundable.perChildMax", "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32 §4.05(2) refundable portion $1,700", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.perOtherDependent", "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf", "title": "Schedule 8812 line 7 ($500 per other dependent)", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.phaseout", "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf", "title": "Schedule 8812 lines 9–11 ($400,000 MFJ / $200,000 others; next multiple of $1,000; 5%)", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.refundable.earnedIncomeThreshold", "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf", "title": "Schedule 8812 lines 19–20 ($2,500; 15%)", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.refundable.rate", "url": "https://www.irs.gov/pub/irs-pdf/f1040s8.pdf", "title": "Schedule 8812 line 20 (15%)", "retrieved": "2026-10-07" },
    { "field": "params.childTaxCredit.refundable.partIIBMinChildren", "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf", "title": "Schedule 8812 instructions — Part II-B for three or more qualifying children", "retrieved": "2026-10-07" },
    { "field": "params.fica.socialSecurity", "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Pub 15 (2026) — social security 6.2% each, wage base $184,500", "retrieved": "2026-10-07" },
    { "field": "params.fica.medicare", "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Pub 15 (2026) — Medicare 1.45% each, no wage base", "retrieved": "2026-10-07" },
    { "field": "params.fica.additionalMedicare.rate", "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Pub 15 (2026) — Additional Medicare Tax 0.9%", "retrieved": "2026-10-07" },
    { "field": "params.fica.additionalMedicare.withholdingThreshold", "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Pub 15 (2026) — withhold on wages over $200,000 regardless of filing status", "retrieved": "2026-10-07" },
    { "field": "params.fica.additionalMedicare.liabilityThreshold", "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf", "title": "Instructions for Form 8959 — threshold amounts by filing status", "retrieved": "2026-10-07" },
    { "field": "params.futa", "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Pub 15 (2026) section 14 — FUTA 0.6% after credit on first $7,000", "retrieved": "2026-10-07" },
    { "field": "params.limits.electiveDeferral", "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67 — §402(g) $24,500", "retrieved": "2026-10-07" },
    { "field": "params.limits.catchUp50", "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67 — §414(v)(2)(B)(i) $8,000", "retrieved": "2026-10-07" },
    { "field": "params.limits.catchUp60to63", "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67 — §414(v)(2)(E)(i) ages 60–63 $11,250", "retrieved": "2026-10-07" },
    { "field": "params.limits.gov457Deferral", "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67 — §457(e)(15) $24,500", "retrieved": "2026-10-07" },
    { "field": "params.limits.hsaSelf", "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19 — HSA self-only $4,400", "retrieved": "2026-10-07" },
    { "field": "params.limits.hsaFamily", "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19 — HSA family $8,750", "retrieved": "2026-10-07" },
    { "field": "params.limits.hsaCatchUp55", "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Pub 969 — additional $1,000 contribution at 55+", "retrieved": "2026-10-07" },
    { "field": "params.limits.healthFsa", "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32 §4.15 — health FSA $3,400", "retrieved": "2026-10-07" },
    { "field": "params.limits.dependentCareFsa", "url": "https://www.irs.gov/pub/irs-pdf/p15b.pdf", "title": "Pub 15-B (2026) — dependent care FSA $7,500 ($3,750 MFS)", "retrieved": "2026-10-07" },
    { "field": "rounding", "url": "https://www.irs.gov/pub/irs-pdf/p15t.pdf", "title": "Pub 15-T (2026) — rounding; MoneyOtter rounds each line to the cent (annual liability is computed exactly; the IRS Tax Table's $50 bands are not used)", "retrieved": "2026-10-07" }
  ]
}