What is a tax table?

A tax table is a chart published by the IRS (and many state tax agencies) that shows the amount of income tax to be withheld from an employee’s paycheck based on their earnings, filing status, and pay frequency. Tax tables are essential tools for calculating how much an employer must withhold for federal and state income taxes each pay period.

For small businesses, tax tables ensure that employees’ withholdings are accurate and compliant with tax laws. Whether you process payroll in-house or use a payroll provider, tax tables are the foundation for correct paycheck calculations. With platforms like Homebase, you don’t need to manually consult tax tables—taxes are automatically calculated and updated as regulations change.

Why tax tables matter for employers

When you hire employees, you become responsible for withholding the right amount of federal and state income taxes from their wages. Tax tables ensure:

• Compliance with IRS and state requirements
  
  
• Accurate employee paychecks
  
  
• Avoidance of over- or under-withholding, which can result in employee tax surprises or IRS penalties
  
  
• Smooth payroll processing, especially for hourly or variable wage employees
  

Using the wrong tax table—or ignoring it entirely—can lead to errors that are costly and time-consuming to fix.

What’s included in a tax table?

A typical tax table includes:

• Wage brackets or ranges (e.g., $500–$520 per week)
  
  
• Filing status (single, married, head of household)
  
  
• Pay frequency (weekly, biweekly, semi-monthly, monthly)
  
  
• Number of dependents or withholding allowances
  
  
• Corresponding tax amount to be withheld
  

For example, if an employee is paid biweekly, earns $1,500 per pay period, and claims single filing status with no dependents, the tax table will show exactly how much to withhold for federal income tax.

Where to find tax tables

1. IRS Publication 15-T

This is the official guide for calculating federal income tax withholding. It contains both:

• Wage bracket method tables – Easier for manual calculations
  
  
• Percentage method tables – More flexible for software-based payroll systems
  

2. State tax agencies

Each state that levies income tax publishes its own tax tables. These vary widely based on tax rates, brackets, and personal exemptions.

3. Payroll software

Modern payroll platforms (like Homebase) integrate the most current federal and state tax tables directly into the system, automatically applying them based on employee information.

Wage bracket vs. percentage method

There are two primary methods for applying tax tables:

Wage bracket method

• Most useful for manual calculations
  
  
• Uses fixed wage ranges and tells you exactly how much to withhold
  
  
• Simpler but less flexible at very high or low income levels
  

Percentage method

• Uses formulas rather than charts
  
  
• Better for payroll software and businesses with variable earnings
  
  
• Requires precise calculations based on earnings and filing status
  

Employers must choose the method that works best with their payroll process or software—both are acceptable under IRS guidelines.

How tax tables relate to Form W-4

The IRS tax tables work in tandem with each employee’s Form W-4, which specifies:

• Filing status
  
  
• Number of dependents
  
  
• Additional withholding amounts
  
  
• Multiple jobs or spousal income (if applicable)
  

When employees submit a new W-4, the employer must apply the most current tax table based on that information. Using outdated forms or tables may result in incorrect withholding.

Best practices for small businesses

• Always use the most current year’s tax tables – Tax brackets and rates may change annually due to inflation or legislative updates
  
  
• Ensure employees complete updated W-4s when hired or when their circumstances change
  
  
• Verify pay frequency settings – Tax tables differ for weekly vs. biweekly vs. monthly pay
  
  
• Double-check calculations if doing payroll manually
  
  
• Use payroll software to automate withholding, reduce errors, and keep up with changing rates
  

How Homebase simplifies tax table management

Homebase automates federal, state, and local income tax calculations for small businesses—so you don’t have to manually reference or apply tax tables. When you run payroll with Homebase, the correct tax tables are built into the platform and updated automatically.

With Homebase, you can:

• Calculate withholdings using the latest IRS and state tables
  
  
• Sync employee W-4 information directly into payroll
  
  
• Avoid manual math or spreadsheet errors
  
  
• Handle multi-state payroll with built-in compliance
  
  
• Automatically file payroll taxes on your behalf
  

Whether you’re hiring your first employee or running payroll for a growing team, Homebase helps keep your tax calculations accurate and audit-ready.

Explore Homebase HR & Compliance to simplify payroll tax calculations, stay compliant with evolving rules, and run your business with confidence.