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Tax Changes Implemented Pay Period 2026-15: GA and Locality in PA

DATE: Thursday, July 16, 2026

Please share this information with all impacted employees.

The following tax changes were implemented in Pay Period 2026-15. 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 

Georgia State Income Tax Withholding:

  • The state income tax withholding formula has changed effective May 11, 2026.
  • The flat tax rate on supplemental wages has changed from 5.19% to 4.99%.
  • The Standard Deduction for employees who claim Married Filing Joint Where Only One Spouse Works has increased from $24,000 to $30,000.
  • The Standard Deduction for employees who claim Single or Head of Household has increased from $12,000 to $15,000.
  • The Standard Deduction for employees who claim Married Filing Separate or Married Filing Joint Where Both Spouses Work has increased from $12,000 to $15,000.
  • The dependent deduction has increased from $4,000 to $5,000.
  • The income tax rate on wages after tax deductions has changed from 5.19% to 4.99%.
  • Datamart Query: Tax State = 13 

Local Taxes

Pennsylvania Local Income Tax Withholding:

  • City of Philadelphia
    • The local income tax for Philadelphia, Pennsylvania has changed effective July 1, 2026.
    • The resident income tax rate has changed from 3.74% to 3.735%.
    • The nonresident tax rate has changed from 3.43% to 3.425%.
    • Datamart Query: Tax State = 42, City Code = 6540

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." For local queries, add the Tax State and/or City Code to the prompt lines (Occurrences – Other PE Pay).

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