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Tax Changes Implemented Pay Period 2026-04: MI and OR

DATE: Thursday, February 12, 2026

Please share this information with all impacted employees.

The following tax changes were implemented in Pay Period 2026-04. 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 

Michigan State Income Tax Withholding:

  • The state income tax withholding formula has changed effective January 1, 2026.
  • The annual amount per exemption has increased from $5,800 to $5,900.
  • Datamart Query: Tax State = 26

Oregon State Income Tax Withholding:

  • The state income tax withholding formula has changed effective January 1, 2026.
  • The standard deduction amount for Single filers claiming less than 3 allowances has increased from $2,835 to $2,910.
  • The standard deduction amount for Single filers claiming 3 or more allowances has increased from $5,670 to $5,820.
  • The standard deduction amount for Married filers has increased from $5,670 to $5,820.
  • The annual tax credit amount, per exemption, has increased from $256 to $263.
  • The annualized deduction for federal tax withheld has increased from a maximum of $8,500 to $8,750.
  • The tax tables have changed for all filers.
  • Datamart Query: Tax State = 41

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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