The wage brackets for income tax withholding are outlined by the IRS in Publication 15-T Federal Income Tax Withholding Methods (this publication is released early each calendar year).
If you have an automated payroll system, use the worksheet below and the Percentage Method tables that follow to figure federal income tax withholding. This method works for Forms W-4 for all prior, current, and future years. This method also works for any amount of wages. If the Form W-4 is from 2019 or earlier, this method works for any number of withholding allowances claimed.
The 00.0% bracket applies to wages up to $3,950
The 10.0% bracket starts when wages exceed $3,950
The 12.0% bracket starts when wages exceed $13,900
The 22.0% bracket starts when wages exceed $44,475
The 24.0% bracket starts when wages exceed $90,325
The 32.0% bracket starts when wages exceed $168,875
The 35.0% bracket starts when wages exceed $213,375
The 37.0% bracket starts when wages exceed $527,550
If you compute payroll manually, your employee has submitted a Form W-4 for 2020 or later, and you prefer to use the Wage Bracket method, use the worksheet below and the Wage Bracket Method tables that follow to figure federal income tax withholding.
The Wage Bracket Method tables cover only up to approximately $100,000 in annual wages. If you can't use the Wage Bracket Method tables because taxable wages exceed the amount from the last bracket of the table(based on filing status and pay period), use the Percentage Method tables in section 4.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.