2018 Income Tax Withholding Tables

by Barry L Weller, EA

Annually, the IRS issues new income tax withholding tables.  For 2018, they became available on January 11, 2018.  These new tables reflect new tax rates and other changes for individuals implemented by the Tax Cuts and Jobs Act (P.L. 115-97 enacted on 12/22/2017)   Employers should put into effect these new rules and tables as soon as possible but not later than February 15, 2018.  Employers are to continue to use the 2017 withholding tables until they can put the 2018 tables into effect.  The new withholding tables reflect the increase in the standard deduction, the repeal of personal exemptions, and new tax rates and brackets. The new tables are designed to produce the correct amount of tax withholding so as to avoid over or under withholding of tax.

When these new withholding tables are used, many employees should see their take-home pay increase. The new withholding tables are designed to work with Forms W-4, Employee’s Withholding Allowance Certificate, that employees already have on file, so employees do not have to fill out new ones at this time. The IRS plans on issuing a new Form W-4 later this year.

Barry L Weller, EA is the president of Barry Weller & Associates with offices at 19 N Reading Ave, Boyertown, PA 19512 Phone (610) 367-8280 He is an enrolled agent, licensed to represent taxpayers before the IRS. (updated 1/17/2018)