Skip to main content

2026 Payroll Tax Updates

  • October 29, 2025
  • 2 replies
  • 239 views
Sonia Echols
Acumatica Moderator
Forum|alt.badge.img+1

Release:    2026-2.50.0          

Update: April 13, 2026

United States

Federal

Income Tax – effective April 13, 2026

A new flag, NRA Standard Deduction Eligible, has been added to Employee Payroll Settings ~ Tax Settings. Select to apply the delinquent employer wage base for jurisdictions with tiered SUTA wage base requirements. When the check box is cleared, the standard wage base applies.

Improved Guidance for Year-to-Date Tax Limit Check (e.g., FUTA)

For taxes with annual limits, the helper text for the "Check the year-to-date tax amount paid" option has been updated to better communicate its purpose.

Why this matters: For taxes like FUTA that have annual wage-base limits, employees who meet or exceed the limit mid-year must stop having that tax withheld. Enabling this option ensures the system automatically adjusts withholding for each pay period based on prior withholding, so taxes are collected accurately year-round.

Recommendation: This option should be enabled for all taxes with annual limits. Without it, employees who have met or exceeded the annual threshold may be over- or under-withheld.

What changed: The descriptive text for this option has been updated from:

"Recommended. Select to check the year-to-date tax amounts paid. An adjustment is made, if necessary, to gain on an employee's taxes."

To:

"Select to auto adjust tax collection, adjusting each pay period's withholding to account for previous withholding and ensure the annual target is met."

Benefits contribution limits – effective April 13, 2026

The tax engine has updated how it handles retirement benefits that share the same IRS contribution limit when those benefits use different catch-up settings.

Previously, in a rare scenario where benefits that share a contribution limit (for example, 401(k) and Roth 401(k)) used different catch-up settings, contributions could be proportionally redistributed between those benefits. This redistribution could cause a non-catch-up benefit to receive contributions even after it had reached its standard IRS limit.

With this update, when benefits that share the same contribution limit have different catch-up settings, the STE no longer redistributes contributions between them. Each benefit is instead limited and applied independently based on its applicable IRS limit. This ensures that a benefit that has reached its standard limit will not receive additional contributions.

 

Delaware

Paid Family and Medical Leave (PFML) – ACTION REQUIRED - effective January 1, 2026

The calculations have been updated to standardize auto-adjust, exemption, and rounding behavior.

Auto-adjust, exemptions, and rounding now apply independently to the employee and employer sides. Exempting or enabling auto-adjust on one side no longer impacts the other, and rounding is performed per side before totals are combined.

We've updated the following parameter default values to 0: Employee Contribution Percentage and Number of Employees. Previously, it was set to 50.

What this means for you:

These parameters directly affect how PFML premiums are split between employer and employee, and whether certain employer obligations apply based on company size. If your configuration relies on system defaults for either of these values, your PFML calculations may no longer reflect the correct amounts.

Action Required:

We recommend reviewing your PFML tax configuration to confirm that the Employee Contribution Percentage and Number of Employees are explicitly set to the correct values for your organization. Do not rely on system defaults for these fields.

 

Kentucky

Elsmere OLF – effective July 1, 2026

The rate has increased from 1.25% to 1.75% (resident and nonresident).

 

Maine

Paid Family and Medical Leave (PFML) – ACTION REQUIRED - effective January 1, 2026

The calculations have been updated to standardize auto-adjust, exemption, and rounding behavior.

Auto-adjust, exemptions, and rounding now apply independently to the employee and employer sides. Exempting or enabling auto-adjust on one side no longer impacts the other, and rounding is performed per side before totals are combined.

 

Maryland

Income Tax – effective January 1, 2026

The standard deduction values have changed:

  • Single filing status increased from $3,350 to $3,400
  • Married filing status increased from $6,700 to $6,800

Allegany County Tax – effective January 1, 2026

The resident rate increased from 3.03% to 3.2%. As a reminder, the engine returns the combined state and county amount under the Maryland State Tax calculation.

Kent County Tax – effective January 1, 2026

The residents’ rate increased from 3.2% to 3.3%. The nonresident rate remains 2.25%. As a reminder, the county tax is included in the combined Maryland State Tax calculation.

 

Massachusetts

Massachusetts Employer Medical Assistance Contributions (EMAC) – ACTION REQUIRED - effective April 13, 2026

The tax engine fixed an issue where the miscellaneous parameter Override Wage Base was explicitly set to 0. Previously, a value of 0 was treated as “no override,” so the engine used SUTA year-to-date subject wages instead of the override. The engine now treats an explicitly set Override Wage Base of 0 as a valid override and uses zero for YTD gross subject wages in the calculation.

We've updated the following parameter default values to 0: Employee Contribution Percentage and Number of Employees. Previously, it was set to 50.

What this means for you:

These parameters directly affect how PFML premiums are split between employer and employee, and whether certain employer obligations apply based on company size. If your configuration relies on system defaults for either of these values, your PFML calculations may no longer reflect the correct amounts.

Action Required:

We recommend reviewing your PFML tax configuration to confirm that the Employee Contribution Percentage and Number of Employees are explicitly set to the correct values for your organization. Do not rely on system defaults for these fields.

 

Michigan

State Unemployment Tax – effective April 13, 2026

A new flag, Use Delinquent Wage Bas has been added to support Michigan’s tiered State Unemployment Tax (SUTA) wage base requirement. The engine previously supported the standard $9,000 taxable wage base. This update introduces support for the higher $9,500 wage base that applies to delinquent employers under Michigan law. Select to apply the delinquent employer wage base for jurisdictions with tiered SUTA wage base requirements. When the check box is cleared, the standard wage base applies.

 

Minnesota

Paid Family and Medical Leave (PFML) – ACTION REQUIRED - effective January 1, 2026

The calculations have been updated to standardize auto-adjust, exemption, and rounding behavior.

Auto-adjust, exemptions, and rounding now apply independently to the employee and employer sides. Exempting or enabling auto-adjust on one side no longer impacts the other, and rounding is performed per side before totals are combined.

We've updated the following parameter default values to 0: Employee Contribution Percentage and Number of Employees. Previously, it was set to 50.

What this means for you:

These parameters directly affect how PFML premiums are split between employer and employee, and whether certain employer obligations apply based on company size. If your configuration relies on system defaults for either of these values, your PFML calculations may no longer reflect the correct amounts.

Action Required:

We recommend reviewing your PFML tax configuration to confirm that the Employee Contribution Percentage and Number of Employees are explicitly set to the correct values for your organization. Do not rely on system defaults for these fields.

 

Ohio

Jersey Township JEDD – effective January 1, 2026

A new JEDD with a rate of 2%. The JEDD is administered by the City of Heath. The JEDD contained 14 parcels, with many of them in active development.

Union Township JEDD – effective January 1, 2026

A new JEDD has been established by Union Township and the City of Heath with a rate of 2%. The JEDD is administered by the City of Heath. The JEDD originally contained 27 parcels but was amended twice. Construction of commercial and residential improvements is expected to occur over the next 15-20 years.

 

Pennsylvania 

Earned Income Tax (EIT) - effective April 13, 2026

We've resolved an issue where Pennsylvania Earned Income Tax (EIT) was withholding tax for employees marked as exempt (Is Exempted = true) on Employee Payroll Settings ~ TAXES when Primary work location is enabled on the EIT and wages were earned outside Pennsylvania. The courtesy withholding path now correctly obeys the ‘Is Exempted’ flag when the employee is exempt in this scenario   

Lewis Township, Williamsport Area School District – effective January 1, 2026     

The tax was updated:

  • The municipal nonresident EIT has increased from 0% to 0.5%
  • The total resident EIT remains 2%
  • The municipal resident EIT rate remains 0.5%
  • The school district resident EIT rate remains 1.5%
  • The municipal low income exemption (LIE) remains $0
  • The school district low income exemption (LIE) remains $0

 

South Carolina

Income Tax – effective January 1, 2026

  • The tax brackets have been updated, and the highest rate has decreased from 6.2% to 6.0%
  • The supplemental wage rate has decreased from 6.2% to 6.0%
  • The value of an annual personal allowance has increased from $4,860 to $5,000
  • The maximum standard deduction amount has increased from $7,300 to $7,500

 

Washington

Long-Term Care Insurance (LTI) – effective January 1, 2026

We've added functionality that allows employers to elect to pay a percentage of the employee’s Washington Long-Term Care Insurance (LTI) premium to align with agency requirements.

A new miscellaneous parameter, Employer Elected Percentage, has been added to the existing employee LTI tax. This parameter accepts values from 0 to 100 and determines the percentage of the total LTI premium paid by the employer.

A new employer tax returns the employer-paid portion. The employee-paid portion continues to be returned on the existing LTI tax.

NOTE: 

If Employer Elected Percentage is not set or is set to 0:

  • The employee pays 100% of the LTI premium
  • The employer LTI tax is not returned unless it is explicitly set up (in which case it returns $0 in this scenario)

If the employee LTI tax is marked exempt, both employee and employer LTI amounts return $0.

If the employer LTI tax is set up but marked exempt:

  • The full LTI premium is returned on the employee tax
  • The employer LTI tax returns $0
Best,

      2 replies

      Sonia Echols
      Acumatica Moderator
      Forum|alt.badge.img+1
      • Sonia Echols
      • Author
      • Acumatica Moderator
      • March 11, 2026

      Release:    2026-1.48.0          

      Update: February 9, 2026

       

      Canada

      Alberta

      Income Tax – Effective February 9, 2016

      Corrected an issue: when an employee works in Alberta and has maxed out CPP contributions, the total income tax was correct; however, the distribution between federal and provincial taxes was off.

       

      United States

      Colorado

      Paid Family Medical Leave (PFML) – effective January 1, 2025

      We corrected an issue in the PFML auto adjust logic where employer pickup amounts could be overstated in certain scenarios.

      When autoAdjust is true and year-to-date wages and withholdings were already aligned between pay periods, the engine could incorrectly recalculate and double the employer pickup amount, resulting in excess imputed income and over-withholding for taxes that treat the pickup as taxable.

      The calculation has been updated so that, in these no-change auto adjust scenarios, the employer pickup amount remains consistent with prior periods rather than being recalculated from total year-to-date values.

       

      Illinois

      Income Tax – effective January 1, 2026

      The tax  has been updated:

      • The value of a basic allowance (Form IL-W-4, Line 1) increased from $2,850 to ** $2,925.
      • The value of an additional allowance (Form IL-W-4, Line 2) remains $1,000.
      • The tax rate remains 4.95%.

       

      Iowa

      Income Tax – effective January 1, 2026

       Iowa released the revised Form IA W-4 and updated the “Married filing jointly & Qualifying Surviving Spouse” filing status into two distinct values:

      • “Married filing jointly”, M
      • “Qualifying Surviving Spouse”, QS

       

      Kentucky

      Breathitt County OLF – effective January 1, 2025

      The wage base increased from $176,100 to $184,500 to match the FICA wage base. The tax rate remains 2%.

       

      Maine

      State Unemployment – effective January 1, 2026

      The tax new-employer rate has increased from 2.11% to 2.23%. The wage base remains $12,000.

      Unemployment Program Administrative Fund – effective January 1, 2026

      The rate increased from 0.16% to 0.17%. The wage base remains $12,000.

       

      Maryland

      Income Tax – effective January 1, 2025

      The tax engine has been updated to align with Maryland's online calculator:

      • Added four new lower-income tiers with the following graduated rates: 2%, 3%, 4%, and 4.75%
      • Updated the standard deduction for the married filing status from $3,350 to $6,700

      Frederick County Tax – effective January 1, 2025

      • Removed progressive bracket treatment; the applicable county rate is now applied uniformly to total taxable income based on the income threshold reached
      • Updated the standard deduction for the married filing status from $3,350 to $6,700

       

      Minnesota

      Income Tax – effective January 1, 2026

      The withholding brackets were updated. The value of an annual withholding allowance increased from $5,200 to $5,300. The non-resident withholding threshold increased from $14,950 to $15,300

      The supplemental tax rate remains 6.25%.

       

      Mississippi

      Income Tax – effective January 1, 2026

      The tax rate for wages above $10,000 decreased from 4.4% to 4%. The standard deduction amounts for each filing status remain the same for 2026. 

       

      Ohio

      Income Tax – effective January 1, 2026

      The tax supplemental rate decreased from 3.5% to 2.75%.

      Unemployment Tax – effective February 9, 2026

      A new 'Is Corporate Officer' option is now available on the Tax Settings tab of Employee Payroll Settings. This field will be utilized when generating the OH UCO-2QR eFile Report under Government Reporting.

      Bowling Green CSD – effective January 1, 2026

      The tax rate increased from 0.5% to 1.25%.

      Circleville-Pickaway Twp JEDD – effective January 1, 2026

      The tax rate increased from 2% to 2.5%. The credit and credit limit remain 0%.

      Clinton-Massie LSD – effective January 1, 2026

      The tax was reactivated with a rate of 1%.

      Coldwater EVSD – effective January 1, 2026

      The tax rate increased from 0.5% to 1%.

      East Palestine CSD – effective January 1, 2026

      The tax was deactivated and is no longer in effect for 2026.

      Edon-Northwest LSD – effective January 1, 2026

      The tax was deactivated and is no longer in effect for 2026.

      Findlay CSD – effective January 1, 2026

      The tax was reactivated with a rate of 1%.

      Hanover City – effective January 1, 2026

      The tax credit decreased from 100% to 0%, and the credit limit decreased from 1% to 0%. The tax rate remains 1%.

      Miami Township-Dayton JEDD – effective January 1, 2026

      The tax rate increased from 1.75% to 2.25%. The tax credit is 100% and the credit limit is 2.25%.

      Milton-Union EVSD – effective January 1, 2026

      The tax rate increased from 1.25% to 2%.

      Trimble LSD – effective January 1, 2026

      The tax was reactivated with a rate of 1%.

      Westerville CSD – effective January 1, 2026

      The tax was reactivated with a rate of 0.75%.

       

      Oregon

      Income Tax – effective January 1, 2026

      The tax was updated:

      • The federal tax adjustment increased from $8,500 to $8,750
      • The value of an annual allowance increased from $256 to $263
      • The standard deductions have changed:
      • Single with fewer than 3 allowances: increased from $2,835 to $2,910
      • Single with 3 or more allowances and Married: increased from $5,670 to $5,820
      • The brackets and constants in the formula have changed

      The supplemental tax rate remains 8%.

       

      Oregon Transit – effective January 1, 2026

       The Oregon Department of Revenue has paused implementation of the increase while a voter referral petition is under review and has directed employers to continue withholding at the 0.1% rate. 

      From the Oregon Department of Revenue:

      In a special session in 2025, the Legislature adopted amendments to ORS 320.550 to increase the rate to two-tenths of 1 percent or .002 beginning January 1, 2026. After the special session, petitioners began collecting signatures for Initiative Petition 302, which would refer HB 3991 to Oregon voters. On December 12, 2025, petitioners submitted signatures to the Oregon Secretary of State to refer the bill to the voters. While signatures are being validated, the DOR is pausing implementation of the rate increase.

      Please continue to withhold at the rate of one-tenth of 1 percent or .001. 

      Paid Family Medical Leave (PFML) – effective January 1, 2025

      We corrected an issue in the PFML auto adjust logic where employer pickup amounts could be overstated in certain scenarios.

      When autoAdjust is true and year-to-date wages and withholdings were already aligned between pay periods, the engine could incorrectly recalculate and double the employer pickup amount, resulting in excess imputed income and over-withholding for taxes that treat the pickup as taxable.

      The calculation has been updated so that, in these no-change auto adjust scenarios, the employer pickup amount remains consistent with prior periods rather than being recalculated from total year-to-date values.

       

      Rhode Island

      State Unemployment – effective January 1, 2026

      The tax was updated:

      • The main wage base increased from $29,800 to $30,800
      • The high tier wage base increased from $31,300 to $32,300

      The new employer rate remains 1.21%.

       Job Development Surcharge – effective January 1, 2026

      The tax was updated:

      • The main wage base increased from $29,800 to $30,800
      • The high tier wage base increased from $31,300 to $32,300

      The new employer rate remains 0.21%.

      State Disability (TDI/TCI) – effective January 1, 2026

      The tax rate decreased from 1.3% to 1.1% and the wage base increased from $89,200 to $100,000.00.

       

      Vermont

      Income Tax – effective January 1, 2026

      The tax was updated:

      • The tax tables and brackets (page 8) have been updated
      • The value of withholding allowance increased from $5,300 to $5,400

       

      Virgin Islands

      State Unemployment – effective January 1, 2026

      The tax wage base increased from $31,100 to $32,100.

      Best,
        Sonia Echols
        Acumatica Moderator
        Forum|alt.badge.img+1
        • Sonia Echols
        • Author
        • Acumatica Moderator
        • April 13, 2026

        Release:    2026-2.49.0          

        Update: March 11, 2026

        United States

        Federal

        HSA Catch-up - effective date March 11, 2026

        A new flag, Use Catch-Up Contribution Limits (HSA), has been added to Employee Payroll Settings ~ Tax Settings. When enabled for employees age 55 or older, the system will apply the applicable 2026 HSA catch-up contribution limits:

        • Single coverage: $5,300
        • Family coverage: $9,550

         

        American Samoa

        State Unemployment Tax – effective January 1, 2026

        As a result of an internal audit, the American Samoa State Unemployment Tax was deactivated. Although the territory does have a local income tax system, there is no separate territorial unemployment insurance program, and no SUTA is remitted.

         

        Delaware

        State Unemployment – effective January 1, 2026

        The tax wage base increased from $12,500 to $14,500. The new employer rate remains 1.2% in 2026 pending any updates from the agency.

        Training Tax – effective January 1, 2026

        The tax rate decreased from 0.126% to 0.11%. Additionally, the wage base increased from $12,500 to $14,500.

         

        Kentucky

        Warsaw OLF – Effective January 1, 2026

        The wage base increased from $176,100 to $184,500. The tax rate remains 1.75%.

         

        Louisiana

        Income Tax – effective January 1, 2026

        The tax standard deductions were updated:

        • Single or married filing separately: updated from $12,500 to $12,875
        • Married filing jointly, qualifying surviving spouse, or head of household: updated from $25,000 to $25,750

        The tax rate remains 3.09%.

         

        Massachusetts

        Income Tax – effective January 1, 2026

        The tax personal exemption amount has increased from $5,800 to $5,900. 

        The tax rate remains 4.25%.

         Paid Family and Medical Leave (PFML) – ACTION REQUIRED – effective March 11, 2026

        We resolved an issue in which Massachusetts PFML taxable wages were erroneously doubled. This occurred when a benefit was configured with Affects Tax Calculation enabled, and the Impact on Taxable Wage under US Tax Settings was set to a value other than Per Calculation Engine, for example, when the configuration was explicitly including or excluding specific taxes.

        Action Required

        Please verify your Massachusetts PFML taxable wages — they should match your Massachusetts Unemployment taxable wages. Make any necessary adjustments to correct prior records.

        State Unemployment – effective January 1, 2026

        The new employer rate increased from 2.13% to 2.42%. The wage base remains $15,000.

         

        Michigan

        Benton Harbor City Tax – effective January 1, 2026

        The Total Allowances miscellaneous parameter has been added to the Benton Harbor City Tax. When calculating taxable wages, the engine now subtracts $750 per allowance claimed from the employee’s annual income. For tax year 2026, the allowance value is $750.

        Per agency guidance, the terms “allowances” and “exemptions” are used interchangeably.

         

        Minnesota

        Paid Family and Medical Leave (PFML) – ACTION REQUIRED – effective March 11, 2026

        We resolved an issue in which Minnesota PFML taxable wages were erroneously doubled. This occurred when a benefit was configured with Affects Tax Calculation enabled, and the Impact on Taxable Wage under US Tax Settings was set to a value other than Per Calculation Engine, for example, when the configuration was explicitly including or excluding specific taxes..

        Action Required

        Please verify your Minnesota PFML taxable wages — they should match your Minnesota Unemployment taxable wages. Make any necessary adjustments to correct prior records.

        Paid Family and Medical Leave (PFML) – effective January 1, 2026

        The default contribution percentage for a qualified small employer has been updated from 50 to 66.6667.

         

        North Dakota

        Income Tax – effective January 1, 2026

        The tax brackets were updated for all filing statuses. The value of an annual allowance remains $5,050 and the supplemental rate remains 1.5%.

         

        Northern Mariana Islands

        State Unemployment Tax – effective January 1, 2026

        As a result of an internal audit, the Northern Mariana Islands State Unemployment Tax was deactivated. Although the territory does have a wage and salary tax, there is no separate unemployment insurance program, and no SUTA is remitted.

         

        Ohio

        Berkshire Township JEDD I & JEDD II – effective January 1, 2024

        Tax credits were updated to 50%, and the credit limits were updated to 0.925%.

        College Corner City Tax – effective September 13, 2025

        The tax was deactivated and is no longer in effect. 

        Delta City Tax – effective January 1, 1900

        The tax credit was corrected from 66.67% to 100% effective January 1, 1900, to reflect the correct credit structure for all supported periods. The tax rate remains 1.5% and the credit remains 1% for 2026.

        Gallipolis City Tax – effective January 1, 2026

        The tax rate increased from 1% to 1.5% and the credit limit increased from 1% to 1.5%. The credit remains 100%. 

        Upper Sandusky City Tax – effective December 17, 2025

        The tax rate increased from 1% to 1.75%. The credit and credit limit remain 0%.

        Village of Indian Hill City Tax – effective January 1, 2026

        The tax rate has increased from 0.45% to 0.5%. The credit and credit limit remain 0%.

         

        Pennsylvania

         Bethel Park, Bethel Park S D EIT– effective January 1, 2026

        • The total resident EIT rate increased from 1.5% to 1.75%
        • The municipal resident EIT rate has increased from 1% to 1.25%
        • The school district resident EIT rate remains 0.5%
        • The municipal nonresident EIT remains 0%
        • The municipal low income exemption (LIE) remains $0
        • The school district low income exemption (LIE) remains $0

        Borough of Blain LST - West Perry School District – effective January 1, 2026

        • The total LST amount increased from $0 to $52
        • The municipal LST increased from $0 to $52
        • The school district LST remains $0
        • The municipal low income exemption (LIE) increased from $0 to $12,000
        • The school district low income exemption (LIE) remains $0

        Borough of Lanesboro, Susquehanna Community School District EIT

        • The total resident EIT increased from 0% to 1%
        • The municipal resident EIT rate has increased from 0% to 1%
        • The school district resident EIT rate remains 0%
        • The municipal nonresident EIT has increased from 0% to 1%
        • The municipal low income exemption (LIE) remains $0
        • The school district low income exemption (LIE) remains $0

        Borough of Marianna LST - Bethlehem-Center School District – effective January 1, 2026

        • The total LST amount increased from $10 to $15
        • The municipal LST increased from $5 to $10
        • The school district LST amount remains $5
        • The municipal low income exemption (LIE) remains $0
        • The school district low income exemption (LIE) remains $0

        Bristol Township, Bristol Township S D EIT– effective January 1, 2026

        • The total resident EIT rate remains 0.5%
        • The municipal resident EIT rate remains 0.5%
        • The school district resident EIT rate remains 0%
        • The municipal nonresident EIT remains 0.5%
        • The municipal low income exemption (LIE) decreased from $4,000 to $0
        • The school district low income exemption (LIE) remains $0

        City of Lancaster, Lampeter-Strasburg School District 

        • The total LST amount decreased from $52 to $47
        • The municipal LST decreased from $52 to $47
        • The school district LST remains $0
        • The municipal low income exemption (LIE) remains $12,000
        • The school district low income exemption (LIE) remains $0

        Exeter Township, Wyoming Area School District  LST - effective January 1, 2026

        • The total LST amount increased from $10 to $30
        • The municipal LST increased from $5 to $25
        • The school district LST amount remains $5
        • The municipal low income exemption (LIE) increased fro m0% to $12,000
        • The school district low income exemption (LIE) remains $0

        Middletown Township, Neshaminy School District EIT – effective January 1, 2026

        • The total resident EIT increased from 0.5% to 1%
        • The municipal resident EIT rate has increased from 0.5% to 1%
        • The school district resident EIT rate remains 0%
        • The municipal nonresident EIT has increased from 0.5% to 1%
        • The municipal low income exemption (LIE) remains $12,000
        • The school district low income exemption (LIE) remains $0

        New Castle, New Castle Area S D EIT – effective January 1, 2026

        • The total resident EIT rate remains 2.075%
        • The municipal resident EIT rate remains 1.575%
        • The school district resident EIT rate remains 0.5%
        • The municipal nonresident EIT increased from 1.148% to 1.271%
        • The municipal low income exemption (LIE) remains $0
        • The school district low income exemption (LIE) remains $0

         Pittston, Pittston Area S D EIT – effective January 1, 2026

        • The total resident EIT rate increased from 2.2% to 2.7%
        • The municipal resident EIT rate increased from 1.7% to 2.2%
        • The school district resident EIT rate remains 0.5%
        • The municipal nonresident EIT remains 1%
        • The municipal low income exemption (LIE) remains $0
        • The school district low income exemption (LIE) remains $0

        Township of East Brunswick, Blue Mountain School District 

        • The total LST amount remains $10
        • The municipal LST remains $5
        • The school district LST amount remains $5
        • The municipal low income exemption (LIE) increased from 0% to $12,000
        • The school district low income exemption (LIE) remains $0

        Upper Uwchlan Township, Downingtown Area School District LST – effective January 1, 2026

        • The total LST amount increased from $10 to $52
        • The municipal LST remains $42
        • The school district LST increased from $0 to $42
        • The municipal low income exemption (LIE) increased from $0 to $12,000
        • The school district low income exemption (LIE) remains $500

         

        Puerto Rico

        Territory Income Tax – effective January 1, 2016

        The tax amounts are rounded to the nearest cent rather than to the nearest whole dollar.

        Based on confirmation from the Puerto Rico Department of Hacienda and a review of published guidance, there is no requirement to round withholding amounts to whole dollars. Additionally, the Developer Guide for Electronic Filing Requirements for Forms 499R-2/W-2PR explicitly instructs filers not to round. From page 18 of their guide: "DO NOT round to the nearest dollar".

        State Unemployment Tax – effective January 1, 2026

        The new employer rate decreased from 3.1% to 2.8%. The wage base remains $7,000.

        Added a new parameter, Allow Zero Rate to Tax Maintenance ~ TAX CODES. When set to true the tax will be calculated at a tax rate of 0% when the Rate is set to 0.

        Special Assessment Tax – effective January 1, 2026

        Added a new parameter, Allow Zero Rate to Tax Maintenance ~ TAX CODES. When set to true the tax will be calculated at a tax rate of 0% when the Rate is set to 0.

         

        North Dakota

        Income Tax – effective January 1, 2026

        The tax brackets were updated for all filing statuses. The value of an annual allowance remains $5,050 and the supplemental rate remains 1.5%.

         

        Ohio

        Berkshire Township JEDD I & JEDD II – effective January 1, 2024

        Tax credits were updated to 50%, and the credit limits were updated to 0.925%.

        We confirmed this change with the City of Delaware Income Tax Department directly.

        College Corner City Tax – effective September 13, 2025

        The tax was deactivated and is no longer in effect. 

        Delta City Tax – effective January 1, 1900

        The tax credit was corrected from 66.67% to 100% effective January 1, 1900, to reflect the correct credit structure for all supported periods. The tax rate remains 1.5% and the credit remains 1% for 2026.

        Village of Indian Hill City Tax – effective January 1, 2026

        The tax rate has increased from 0.45% to 0.5%. The credit and credit limit remain 0%.

         

        South Dakota

        Administrative Fee -effective January 1, 2026

        The rate increased from 0.02% to 0.08%. The wage base remains $15,000.

         

        Virgin Islands

        State Unemployment – effective January 1, 2026

        Added a new parameter, Allow Zero Rate to Tax Maintenance ~ TAX CODES. When set to true the tax will be calculated at a tax rate of 0% when the Rate is set to 0.

         

        Washington

        Seattle Payroll Expense Tax – Action Required – effective January 1, 2026

        The tax rates and thresholds have been updated:

        Action Required: Acumatica Payroll does not currently support Payroll Expense Tax; this tax must be calculated and filed manually.

         

        West Virginia

        Romney City & Smithers City Service Fees – effective July 1, 2015

        The fees are exempt for residents. As a result, the resident tax rate was updated from 1% to 0% for the Romney City Service Fee. 

        Best,
          Terms & ConditionsCookie settingsAccessibility statement
          About Acumatica ERP system
          Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
          © 2008 — 2024  Acumatica, Inc. All rights reserved