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Tax Changes Implemented Pay Period 2026-14: AR, NM, UT, and WV

DATE: Thursday, July 16, 2026

Please share this information with all impacted employees.

The following tax changes were implemented in Pay Period 2026-14. As a result, employees may see a change in their current tax withholdings. Please note that these tax changes are not applied retroactively and reconciliation may be needed when impacted employees file their tax returns.

State Taxes 

Arkansas State Income Tax Withholding:

  • The state income tax withholding formula has changed effective January 1, 2026.
  • The flat tax rate on supplemental wages has changed from 3.9% to 3.7%.
  • The standard tax table has changed.
  • Datamart Query: Tax State = 05

New Mexico State Income Tax Withholding:

  • The state income tax withholding formula has changed effective January 1, 2026.
  • The state does not have its own W-4 form and instead uses the Department of the Treasury’s W-4 form for claiming marital status. The state marital status values and defaults have been updated to align with the Department of the Treasury’s W-4 form.
    • Married Filing Separate is now a valid marital status for New Mexico. Employees claiming Married Filing Separate will be taxed as if they claimed Single.
    • Married Filing Jointly is now a valid marital status for New Mexico. Employees claiming Married Filing Jointly will be taxed as if they claimed Married.
  • Datamart Query: Tax State = 35

Utah State Income Tax Withholding:

  • The state income tax withholding formula has changed effective June 1, 2026.
  • The income tax rate has changed from 4.5% to 4.45%.
  • The base allowance for Single filers has increased from $450 to $485.
  • The base allowance for Married filers has increased from $900 to $970.
  • The wages exempt from the tax credit reduction for single filers has increased from $9,107 to $9,348.
  • The wages exempt from the tax credit reduction for married filers has increased from $18,213 to $18,696.
  • Datamart Query: Tax State = 49

West Virginia State Income Tax Withholding:

  • The state income tax withholding formula has changed effective January 1, 2026.
  • The Two Earner/Two Jobs and optional One Earner/One Job tables have changed.
  • Datamart Query: Tax State = 54

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 = (Tax State code listed above) or STE Tax State 2 = (Tax State code listed above) to the filter or prompt lines. Another option is the shared Datamart report titled "State Tax Code Report."

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