MEMORANDUM
DATE: July 14, 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) 2025-15: GA and VA
Please share this information with all impacted employees. The following tax changes were implemented in PP 2025-15. 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
- Georgia Income Tax Withholding:
- The state income tax withholding formula has changed effective July 1, 2025.
- The flat tax rate on supplemental wages has changed from 5.39% to 5.19%.
- The income tax rate on wages after tax deductions has changed from 5.39% to 5.19%.
- Datamart Query: Tax State = 13
- Virginia Income Tax Withholding:
- The state income tax withholding formula has changed effective July 1, 2025.
- The annual standard deduction amount has increased from $8,500 to $8,750.
- Datamart Query: Tax State = 51
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).
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.