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July 2026 Payroll Tax Update Bulletin

Created on  | Last modified on 

Summary

This bulletin outlines the key state tax changes and updated wage limits included in the July 2026 Sage 50 Payroll Solutions Update. Payroll administrators should review these changes and ensure their systems are updated to remain compliant for the 2026 tax year.

Resolution

Need to download the tax update? Visit the Sage 50—U.S. Edition: Download Portal.

State and Local Tax Changes

  1. Arizona State Income Tax

Withholding table change.

  1. Colorado Family and Medical Leave Insurance

Tax rate changed.

  1. Georgia State Income Tax

Withholding tax rate, standard deduction and dependent allowance changes.

  1. Pennsylvania – City of Philadelphia (Residents)

Tax rate change.

  1. Pennsylvania – City of Philadelphia (Non-Residents)

Tax rate change.

  1. West Virginia State Income Tax

Withholding table change.

  1. Utah State Income Tax

Withholding rate and base allowance changes.

2026 State Unemployment Wage Limits

The following state unemployment wage limits apply for tax year 2026. For details on how to apply the limits for your state, please review the following articles in the Year-End Center:

How to automatically update your user-maintained payroll taxes and benefits for the new year using the Update Wizard

State 

Employee Annual Wage Limit 

State 

Employee Annual Wage Limit 

Alabama 

8,000 

Montana 

47,300 

Alaska 

54,200 

Nebraska 

9,000 

Arizona 

8,000 

Nevada 

43,700 

Arkansas 

7,000 

New Hampshire 

14,000 

California 

7,000 

New Jersey 

44,800 

Colorado 

30,600 

New Mexico 

34,800 

Connecticut 

27,000 

New York 

17,600 

Delaware 

14,500 

North Carolina 

34,200 

DC 

9,000 

North Dakota 

46,600 

Florida 

7,000 

Ohio 

9,000 

Georgia 

9,500 

Oklahoma 

25,000 

Hawaii 

64,500 

Oregon

56,700

Idaho 

58,300 

Pennsylvania 

10,000 

Illinois 

14,250 

Rhode Island 

30,800 

Indiana 

9,500 

South Carolina 

14,000 

Iowa 

20,400 

South Dakota 

15,000 

Kansas 

15,100 

Tennessee 

7,000 

Kentucky 

12,000 

Texas 

9,000 

Louisiana 

7,000 

Utah 

50,700 

Maine 

12,000 

Vermont 

15,400 

Maryland 

8,500 

Virginia 

8,000 

Massachusetts 

15,000 

Washington 

78,200 

Michigan 

9,000 

West Virginia 

9,500 

Minnesota 

44,000 

Wisconsin 

14,000 

Mississippi 

14,000 

Wyoming 

33,800 

Missouri 

9,000 

Puerto Rico 

7,000 

 

 

Virgin Islands 

32,100 

NOTE:

Bold text in the original table indicates States where the wage base limit changed in this update.

Payroll Tax Forms

Payroll tax forms were updated in the Payroll Tax Form Selector window on or after December 20, 2025. Apply all updates promptly.

NOTE:

The payroll forms update also updates the forms lists that appear in the Payroll Tax Form Selector window. If you are trying to run a year-end 2025 form such as W-2’s, 940/943/945 but only see the 2024 forms listed then:

  • Select the 2024 form that you want and click OK
  • If you have a current Sage 50 subscription, the next window will prompt you to update your forms
  • After taking the forms update, you will see the 2025 year-end forms listed in the Payroll Tax Form Selector window

NOTE:

Special Note: The forms provided by Sage 50 are approved by the taxing authorities. A few states have not yet approved their forms. Any form, that can be printed and mailed, and is awaiting approval, will print with the banner “Record Copy Do Not File”. We will be removing the “Record Copy” as the taxing agencies approve the forms. There will be periodic online updates for these forms via the Automatic Update feature in Payroll Tax form.

Verifying Your Tax Update

The version for this tax update is 20260701 for Release 2026. To confirm your update:

  1. Open Sage 50 company.
  2. Select Help > About Sage 50 Accounting.
  3. Confirm the Installed Tax Update version matches 20260701.

Getting Help and Support

Access in-product help by clicking the Help button or pressing F1. For additional support, visit the Sage 50 Accounting User Community.

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