IRS: No changes to 2025 federal withholding tables or Forms W-2/1099/941 under the One Big Beautiful Bill Act (OBBBA).
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United States
On Aug 7, 2025, IRS News Release IR-2025-82 confirmed that, as part of phased OBBBA implementation, there will be no updates for Tax Year 2025 to federal income tax withholding tables or to Forms W-2, existing Forms 1099, and Form 941. Employers and payroll providers should continue using current reporting and withholding procedures for 2025.
Effective Date
Tax Year 2025 – no changes (updates deferred to Tax Year 2026).
Published
August 7, 2025 (IR-2025-82).
Impact
- No federal payroll recalculations for 2025 due to OBBBA; existing 2025 withholding methods remain valid.
- Federal payroll forms (W-2, 1099 series, 941) unchanged for 2025.
- IRS indicates new guidance and updated forms are being prepared for TY 2026 (including changes to how tips and overtime are reported).
Payroll action
Keep current 2025 settings: continue using Publication 15-T (2025) withholding methods and existing 2025 payroll forms/workflows.