Tax Change Notices
Stay on top of tax changes that may affect your retirement income
Upcoming tax changes may impact your total tax withholding and net amount of your reoccurring payments. Review the chart below to understand the tax changes for your state.
Contact your Nationwide Retirement Specialist if you would like to update your tax withholding information or have any other questions.
Phone: 1-877-677-3678
Monday-Friday 8 a.m. – 11 p.m. ET
Saturday 9 a.m. – 6 p.m. ET
| State or Federal Tax | Description of Change | Impact to Tax Withholding for Existing Pension Payments on File | Date of Change |
|---|---|---|---|
| Nebraska Residents | Percentage will be removed as an option for Nebraska state tax withholding on pension payments. Eligible for rollover nonperiodic payments require Nebraska mandatory 5% state tax withholding. | If you have a percentage on file or have less than the mandatory 5% for state tax withholding on an existing payment, state tax withholding will be updated to the default of Single and Zero (periodic payments) or a mandatory 5% (nonperiodic payments). | December 2023 |
| Oklahoma Residents | Percentage will be removed as an option for Oklahoma state tax withholding on pension payments. Wage calculation default is changing from Single and Zero to Married and Three for pension payments moving forward. | If you have a percentage on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of Married and Three (periodic payments) or 4.75% (nonperiodic payments). | December 2023 |
| Kansas Residents | Eligible for rollover nonperiodic pension payments require Kansas mandatory 5% state tax withholding. | If you have less than the mandatory 5% for state tax withholding on an existing nonperiodic payment eligible for rollover, state tax withholding will be updated to the mandatory 5%. | December 2023 |
| Michigan Residents | Michigan state tax withholding rate for pension payments is changing from 4.05% to 4.25%. | If you have a percentage on file that is less than 4.25% for state tax withholding on an existing payment, state tax withholding will be updated to 4.25%. | January 2024 |
| Illinois Residents | Illinois state exemption credit will lower from $2,625 to $2,425. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will increase due to lower exemption credit in state wage calculation. | January 2024 |
| North Carolina Residents | North Carolina state tax withholding rate in wage calculation for pension payments is changing from 5.09% to 4.5%. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will decrease due to lower wage calculation rate. | January 2024 |
| Arkansas Residents | Arkansas state tax wage tables updated, and standard deduction will increase from $2,270 to $2,340. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will likely decrease due to wage calculation changes. | January 2024 |
| California Residents | California state tax wage tables updated. Annualized increase of income thresholds, standard deductions, wage tables and personal exemptions. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will likely decrease due to wage calculation changes. | January 2024 |
| Maine Residents | Maine state tax wage tables, allowances and deductions updated. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will likely decrease due to wage calculation changes. | January 2024 |
| Ohio Residents | Wage calculation will be removed as an option for Ohio state tax withholding on pension payments. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of no withholding ($0). | January 2024 |
| Idaho Residents | Wage calculation will be removed as an option for Idaho state tax withholding on pension payments. Idaho will no longer have whole dollar rounding for state tax withholding. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of no withholding ($0). Idaho will no longer have whole dollar rounding. | January 2024 |
| Federal | Federal tax wage tables updated. | If you have marital status and exemptions on file for federal tax withholding on an existing payment, federal tax withholding will likely decrease due to wage calculation changes. | February 2024 |
| Colorado, Connecticut, Iowa, Nebraska, New Mexico, Oklahoma, and Vermont Residents | Colorado, Connecticut, Iowa, Nebraska, New Mexico, Oklahoma, and Vermont state tax wage tables, allowances and/or deductions updated. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will likely decrease due to wage calculation changes. | February 2024 |
| Minnesota Residents | Wage calculation will be removed as an option for Minnesota state tax withholding on pension payments. Minnesota will no longer have whole dollar rounding for state tax withholding. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of 6.25%. Minnesota will no longer have whole dollar rounding. | February 2024 |
| Missouri Residents | Wage calculation will be removed as an option for Missouri state tax withholding on pension payments. State rate of 4.95% will be removed as an option for Missouri state tax withholding on pension payments. Missouri will no longer have whole dollar rounding for state tax withholding. | If you have marital status and exemptions or state rate of 4.95% on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of no withholding ($0). Missouri will no longer have whole dollar rounding. | February 2024 |
| Illinois, Oregon, Rhode Island, and South Carolina Residents | Illinois, Oregon, Rhode Island and South Carolina state tax wage tables, exemptions, allowances and/or deductions updated. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will change due to wage calculation changes. | March 2024 |
| Kentucky Residents | Wage calculation will be removed as an option for Kentucky state tax withholding on pension payments. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of no withholding ($0). | April 2024 |
| California Residents | Percentage will be removed as an option for California state tax withholding on pension payments. Additional withholding will be removed as an option for the California 10% of Federal state tax withholding calculation on pension payments. | If you have a percentage on file for state tax withholding on an existing payment, state tax withholding will be updated to the default of 10% of the Federal withholding amount. If you have additional withholding on file for 10% of Federal state tax withholding on an existing payment, state tax withholding will be updated to remove the additional withholding and only 10% of the federal withholding amount will be withheld. | April 2024 |
| Georgia, Massachusetts, and Michigan Residents | Georgia, Massachusetts, and Michigan state tax wage tables, exemptions, allowances and/or deductions updated. | If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will change due to wage calculation changes. | April 2024 |
| Virginia | Virginia state tax wage tables updated.
Single or Married filing separately deduction will increase from $8,000 to $8,500 Married filing Jointly deduction will increase from $16,000 to $17,000 |
If you have marital status and exemptions on file for state tax withholding on an existing payment, state tax withholding will likely decrease due to wage calculation changes. | June 2024 |
Contact your Nationwide Retirement Specialist if you would like to update your tax withholding information or have any other questions.
Phone: 1-877-677-3678
Monday-Friday 8 a.m. – 11 p.m. ET
Saturday 9 a.m. – 6 p.m. ET