DATE: Thursday, October 8, 2026
Please share this information with all impacted employees.
The following tax changes were implemented in Pay Period 2026-21. 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
Idaho State Income Tax Withholding:
- The state income tax withholding formula has changed effective July 23, 2026.
- The annual deduction per exemption has changed from $3,868 to $0 and is no longer used to reduce taxable wages.
- The Single and Married tax tables have changed.
- Datamart Query: Tax State = 16
Maine State Income Tax Withholding:
- The state income tax withholding formula has changed effective January 1, 2026.
- The Single and Married standard deduction tables have changed.
- The Single and Married withholding tables have changed.
- Datamart Query: Tax State = 23
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."
Resources:
- Federal, State and Territorial Income Tax Withholding Formulas – IBC Customer Central
- State Tax Code Report in Datamart OAS
Questions:
- Please contact the Customer Support Center at Payroll_Helpdesk@ios.doi.gov or 1-866-FOR-1-CSC (1-866-367-1272).