IRS Notice 1036 – IRS Forms, Instructions, Pubs 2026 – Employers and payroll professionals searching for IRS Notice 1036, the Percentage Method Tables for Income Tax Withholding, or early-release federal withholding tables will find this comprehensive resource essential. While the official IRS Notice 1036 (linked below) provided critical early guidance for 2019 withholding calculations following major tax reform, the IRS discontinued new versions of this notice starting in 2020.
This article explains exactly what IRS Notice 1036 was, its full content, why it mattered, and—most importantly—where to find the current 2026 Percentage Method Tables and withholding instructions today.
What Is IRS Notice 1036?
IRS Notice 1036, titled “Early Release Copies of the Percentage Method Tables for Income Tax Withholding”, was an annual (or as-needed) IRS publication that gave employers advance access to the Percentage Method Tables before they appeared in full in Publication 15 (Circular E), Employer’s Tax Guide.
- Revision Date: December 2018 (the version still hosted on IRS.gov)
- Purpose: To help employers quickly implement updated federal income tax withholding for wages paid in the upcoming year, especially after significant tax law changes like the Tax Cuts and Jobs Act (TCJA).
- Direct Download: https://www.irs.gov/pub/irs-pdf/n1036.pdf (4 pages, early release for 2019 tables)
The notice included the Percentage Method Tables (used primarily by automated payroll systems), supplemental withholding allowance values, nonresident alien adjustments, Social Security/Medicare rates, Additional Medicare Tax rules, and backup withholding information.
Key Content in IRS Notice 1036 (2019 Tables)
The document provided eight Percentage Method Tables for 2019 wages, covering every common payroll period:
- Weekly (Table 1)
- Biweekly (Table 2)
- Semimonthly (Table 3)
- Monthly (Table 4)
- Quarterly (Table 5)
- Semiannual (Table 6)
- Annual (Table 7)
- Daily or Miscellaneous (Table 8)
Each table had separate columns for:
- Single person (including head of household)
- Married person
Example structure (simplified):
If adjusted wages fall in a bracket (e.g., over $260 but not over $832 for weekly Single in 2019), withhold 10% of the amount over the base + fixed dollar amount.
Additional 2019 Details Included:
- Withholding allowance values (e.g., $80.80 weekly per allowance)
- Nonresident alien wage adjustment amounts (e.g., add $153.80 weekly)
- Social Security tax: 6.2% (wage base $132,900)
- Medicare tax: 1.45% (no wage base limit)
- Additional Medicare Tax: 0.9% on wages over $200,000
- Supplemental wages flat rate: 22% (up to $1 million); 37% above
- Backup withholding rate: 24%
Rounding rules, consistent application requirements, and notes for nonresident aliens (with exceptions for certain Indian students/apprentices) were also clearly stated.
Why Employers Needed Early Release Tables?
Before widespread digital publishing, employers needed time to program payroll systems with new brackets, rates, and formulas—especially after the TCJA overhauled tax brackets, standard deductions, and eliminated personal exemptions. Notice 1036 allowed implementation as early as possible (ideally by mid-January, no later than February 15 in the 2018/2019 rollout).
Important Update: Notice 1036 Was Discontinued After 2019
Effective for calendar year 2020 and later, the IRS stopped issuing new versions of Notice 1036.
Instead, the agency now releases the Percentage Method Tables, Wage Bracket Method Tables, nonresident alien adjustments, and full withholding instructions much earlier through:
- Publication 15-T (Federal Income Tax Withholding Methods) — the primary source
- Early drafts of Publication 15 (Circular E)
This change allows faster updates and better integration with the redesigned Form W-4 (2020 and later), which no longer uses “withholding allowances” but a new step-based system (Step 2 checkbox for multiple jobs, Step 3 for dependents, Step 4 for other adjustments).
Current 2026 Federal Income Tax Withholding Resources
For wages paid in 2026, use these official IRS publications (updated for the permanent extension of TCJA individual tax rates under P.L. 119-21):
- Publication 15-T (2026) – Contains all Percentage Method Tables (automated & manual systems), Wage Bracket Tables for both 2020+ and pre-2020 Forms W-4, nonresident alien adjustments, pension/annuity withholding, and Indian gaming profit tables.
→ PDF: https://www.irs.gov/pub/irs-pdf/p15t.pdf
→ Online: https://www.irs.gov/publications/p15t (published early December 2025) - Publication 15 (2026), Circular E – Employer’s Tax Guide with overview, Social Security wage base ($184,500 for 2026), Medicare rates (unchanged), and references to Pub. 15-T for full tables.
→ PDF: https://www.irs.gov/pub/irs-pdf/p15.pdf
2026 Key Rates (from Pub. 15):
- Social Security: 6.2% employee + 6.2% employer (wage base $184,500)
- Medicare: 1.45% each (no limit) + Additional Medicare Tax 0.9% over $200,000
- Backup withholding: 24%
How to Figure 2026 Withholding (Quick Steps)?
- Collect valid Form W-4 (2020 or later version preferred).
- Go to Pub. 15-T.
- Choose the correct section:
- Automated systems → Section 1 Percentage Method Tables
- Manual payroll → Section 4 (2020+ W-4) or Section 5 (pre-2020 W-4)
- Apply the appropriate payroll period table, rounding rules, and any Step 2–4 adjustments.
Employers with automated systems should verify their software vendor has loaded the 2026 Pub. 15-T tables.
Download the Original IRS Notice 1036 PDF
For historical reference or legacy systems still referencing 2019 rules:
Direct IRS Link: Notice 1036 PDF (2019 Tables)
Note: Do not use these 2019 tables for 2026 payroll—they are obsolete.
Stay Compliant in 2026 and Beyond
- Bookmark IRS.gov/Pub15T and IRS.gov/Pub15 for future early releases.
- Check IRS.gov/Notice1036 (redirects to current guidance).
- Subscribe to IRS payroll tax updates via the IRS email newsletter.
- Consult a payroll provider or tax professional for complex situations (multiple jobs, nonresident aliens, supplemental wages over $1 million).
Bottom line: IRS Notice 1036 played a vital role in the post-TCJA transition, but today’s employers should rely exclusively on the latest Publication 15-T for accurate 2026 Percentage Method Tables and withholding calculations.
Need help implementing 2026 withholding in your payroll software? Comment below or consult the full Pub. 15-T worksheets for step-by-step examples.
Last updated February 2026 using official IRS sources.