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Additional Tax Changes Implemented Pay Period (PP) 2025-13: ID, UT, and Localities in AL and PA

MEMORANDUM

DATE: June 17, 2025
TO: Federal Personnel and Payroll System User Group Representatives
FROM: Rebecca N. Romero, Acting Chief, Payroll Operations Division
SUBJECT: Action Required: Additional Tax Changes Implemented Pay Period (PP) 2025-13: ID, UT, and Localities in AL and PA

Please share this information with all impacted employees. The following tax changes were implemented in PP 2025-13. As a result, employees may see a change in their tax withholdings.  Please note that tax changes are not retroactive to employees’ withholding.

State Taxes

  • Idaho Income Tax Withholding:
    • The state income tax withholding formula has changed effective April 28, 2025.
    • The flat tax rate on supplemental wages has changed from 5.695% to 5.3%.
    • The annual deduction per exemption has changed from $3,600 to $3,868.
    • The Single and Married tax tables have changed.
  • Utah Income Tax Withholding:
    • The state income tax withholding formula has changed effective June 1, 2025.
    • The income tax rate has changed from 4.55% to 4.5%.
    • The base allowance for Single filers has increased from $440 to $450.
    • The base allowance for Married filers has increased from $880 to $900.
    • The wages exempt from tax credit reduction for Single filers has increased from $8,826 to $9,107.
    • The wages exempt from tax credit reduction for Married filers has increased from $17,652 to $18,213.

Local Taxes

  • Alabama Local Income Tax Withholding:
    • City of Opelika:
      • The resident tax rate has changed from 1.5% to 1%.
      • Datamart Query: Tax State = 01 City Code = 2340
  • Pennsylvania Local Income Tax Withholding:
    • City of Lancaster:
      • The resident tax rate has changed from 1.1% to 1.6%.
      • Datamart Query: Tax State = 42 City Code = 4180 

You may execute Datamart queries to identify employees in affected state taxing areas. For Combined File Ad-Hoc query/analysis of applicable States: add STE Tax State 1 = (State Code above) or STE Tax State 2 = (State Code above) to the filter or prompt lines. Another option is the shared Datamart report titled “State Tax Code Report” (State Tax Code Query Now Available). For local tax queries - see above for the applicable Local Tax State and/or Local Tax City Codes to add to the prompt lines (Occurrences – Other PE Pay).

The Interior Business Center (IBC) Payroll website is updated frequently; you may view the state tax formulas here:  Federal, State, and Territorial Income Tax Withholding Formulas.

If there are any questions, please contact the IBC Customer Support Center at Payroll_Helpdesk@ios.doi.gov or (866) 367-1272.

 

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