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How to Change Your Tax Withholding

Reviewed by David Hutter, JD November 2026

Short answer

To change your tax withholding from a job, fill out a new Form W-4 and give it to your employer. For pension or annuity payments, submit a new Form W-4P to the payer instead. Withholding is the income tax taken out of each payment and sent to the IRS for you. You can also cover a gap by making an extra tax payment to the IRS before the year ends.

See details

How to Change Tax Withholding by Income Source

The form you use depends on where your money comes from. The IRS lists these options on its tax withholding page, and Publication 505 covers the other payment types.

Income sourceForm to useWho gets it
Wages from a jobForm W-4Your employer
Pension or annuity (periodic payments)Form W-4PYour pension or annuity payer
Nonperiodic retirement paymentsForm W-4RThe payer
Unemployment or Social Security benefitsForm W-4VThe payer

Each form goes to whoever pays you. If you’d rather not change a form, you can make an additional or estimated tax payment directly to the IRS before year end.

Retirement Payouts and Government Benefits

Nonperiodic retirement payments have a default withholding rate of 10%. You can choose any rate from 0% to 100% on Form W-4R.

For unemployment and certain federal payments like Social Security, you can choose withholding by filing Form W-4V. Regular pension and annuity payments use Form W-4P.

What to Change on Form W-4

Most people change withholding through their job, so the W-4 is where you’ll spend the most time. The form no longer uses allowances, which ended in 2020. Instead, you complete the steps that apply to you on the current Form W-4.

  • Step 1 asks for your personal information and filing status. Everyone completes it.
  • Step 2 is for people with more than one job or a working spouse.
  • Step 3 lowers withholding for dependents, at $2,200 per qualifying child under 17 and $500 for other dependents on the 2026 form.
  • Step 4(a) adds withholding for other income.
  • Step 4(b) lowers withholding for deductions, including the new tips and overtime deductions.
  • Step 4(c) lets you add a set dollar amount of extra withholding each pay period.
  • Step 5 is your signature. Everyone completes it.

For a line-by-line walkthrough, learn how to fill out a W-4.

Using the Tax Withholding Estimator

You don’t have to guess the numbers. The IRS Tax Withholding Estimator helps you figure out what to enter, and you can use its results to fill out your new W-4.

When to Update Your Withholding

A change in your life is a good reason to revisit your W-4. According to Publication 505, changes to your marital status, adjustments, deductions or credits may mean you need a new form.

Deadlines for You and Your Employer

Some changes come with a deadline. If a change in your personal circumstances reduces the withholding you’re entitled to claim, you must give your employer a new W-4 within 10 days. Your employer then has until the start of the first payroll period ending on or after the 30th day after you turn it in.

Renewing Exempt Status

If you claim exemption from withholding, it doesn’t carry over. You need to file a new W-4 each year to keep it.

How Withholding Changes Affect Your Paycheck

Every change is a trade-off between your paycheck now and your tax bill later. More withholding means smaller paychecks, but a bigger refund or less owed when you file. Less withholding means bigger paychecks, with a higher risk of owing at tax time.

To see what’s coming out today before you adjust, check how much tax is taken out of your paycheck.

Sources

How to fill out a W-4 What is Form W-4? What's the difference between a W-2 and a W-4? What is withholding tax? How Much Tax Is Taken Out of My Paycheck? How do quarterly estimated tax payments work?