US: IRS Releases 2026 Inflation Adjustments (Rev. Proc. 2025‑32)
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IRS announced annual inflation adjustments for tax year 2026 (e.g., rate brackets and numerous thresholds) that feed 2026 federal income‑tax withholding and certain payroll‑related limits.
Effective Date
- January 1, 2026
Published
- October 9, 2025
Impact
- Payroll engines must load 2026 federal parameters and validate impacts to withholding calculations; benefits/payroll limits tied to the revenue procedure should be refreshed.
Payroll action
- Prepare 2026 configs; test 2026 federal withholding across earn types and supplemental methods; update employee communications