Now’s the Time to Adjust Tax Withholdings on Your Paycheck, IRS Urges

By checking tax withholding, individuals can prevent having to owe additional money and any potential penalties at tax time.

The tax filing deadline—at least for most of the country—has come and gone but there are steps taxpayers need to take now to avoid issues in the future, the Internal Revenue Service is warning.

Now is the time to adjust tax withholdings on your paycheck to avoid surprises next filing season. Making those adjustments now prevents big changes later in the year to try and catch up and avoid paying in 2026.

How much should you withhold from your paycheck?

Taxes are pay-as-you-go, which means workers need to pay as they receive their income through withholdings—the federal income tax portion of each paycheck that’s taken out by employers. For self-employed people, withholdings are the amount of earnings that are set aside to pay estimated taxes, the IRS explained.

The IRS provides a free Tax Withholding Estimator so people can determine if they need to change any amounts. This can prevent owing money or potential penalties at filing time or paying too much through the year and reducing take-home pay.

It’s recommended filers use the tool once a year, making sure to note things such as buying a home, changing jobs, having a child or changing marital status. Any full-time earnings, as well as side jobs and sales that would be reported on a 1099-K, should be included.

You can see more on what documents you need for the most accurate results here. You can see the calculator here.