I'm trying to find a table or description of how much each allowance claimed on Form W-4 will reduce taxable income but am coming up short. The closest that I can find is here under the Claiming Allowances section where it states:

In 2015, each allowance exempts $4,000 from withholding

I am not sure if this value has changed from 2015 to 2016, nor am I sure that this amount does not change based upon income.


What you want is the document called Publication 15 (Circular E).

It's the IRS document that explains the withholding allowance of $4050 in 2016, and contains the tables that employers use to determine tax withholding for a given income.

The value, $4050, is fixed, but its impact changes based on one's tax bracket. e.g. if you are single, and earn a taxable $100K, the single withholding is worth $4050*.28 (i.e. the change in tax held per allowance claimed), vs for a taxable $35K earner, $4050*.15.

2018 Jan Edit - This question was asked for the 2016 tax year. The link above leads to the latest IRS publication, still for 2017, at this moment. I expect it to update shortly, weeks, at the latest. Another document, Notice 1036 shows the number has been updated to $4150.

  • +1 but please correct "employer's use" to "employers use" :-) Jan 21 '16 at 16:20
  • Lol. Fixed. I'd like to blame autocorrect. Yes, that's it. Jan 21 '16 at 16:45

It is 4050 $ per allowance for 2016 (https://www.dinkytown.net/java/Payroll.html, far down under 2.)

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.