Tax Withholding Estimator now reflects changes under the One, Big, Beautiful Bill

 

March 18, 2026

The IRS Tax Withholding Estimator now reflects changes to credits and deductions under the One, Big, Beautiful Bill. The estimator is a free, easy-to-use tool that helps you estimate how much federal income tax to withhold from their paychecks now for the taxes they will pay next year.

The estimator now considers these deductions:

  • No Tax on Tips
  • No Tax on Overtime
  • No Tax on Car Loan Interest
  • The enhanced deduction for seniors

It also more accurately accounts for changes to family-related credits, homeownership and charitable giving.

For more information see the news release.