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Copy file name to clipboardExpand all lines: dynamics-gp/payroll/US19JanTaxR1.md
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ms.topic: article
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ms.reviewer: jswymer
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ms.author: theley
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ms.date: 2/3/2025
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ms.date: 3/5/2025
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---
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# U.S. 2025 Payroll Tax Update
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This article provides guidance for how to install the 2025 U.S. Payroll Tax Update for Microsoft Dynamics GP and describes changes.
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This is the third tax update for 2025 and replaces all previous tax updates. It includes State tax table changes that take effect January 1, 2025.
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This is the fourth tax update for 2025 and replaces all previous tax updates. It includes State tax table changes that take effect January 1, 2025.
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This document assumes that you are familiar with the Microsoft Dynamics GP U.S. Payroll module.
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[Tips to install the U.S. Payroll Tax Update](https://community.dynamics.com/blogs/post/?postid=dbc1295b-297f-4441-aa2f-7c2502bffc97)
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## Changes in January Round 3 update (Target Release 2/6/2025)
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## Changes in March Round 4 update (Released 3/7/2025)
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- Indiana
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### Withholding changes for Indiana
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The Flat tax rate is reduced to 3.00% from 3.05%.
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## Changes in February Round 3 update (Released 2/4/2025)
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- Illinois
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- Maryland
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- Mississippi
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4. Choose Process to start the update.
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5. Verify that the latest Payroll tax table update has been installed. Choose Microsoft Dynamics GP menu \>\> Tools \>\> Setup \>\> System \>\> Payroll Tax. The Last Tax Update value should be *2/6/2025*.
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5. Verify that the latest Payroll tax table update has been installed. Choose Microsoft Dynamics GP menu \>\> Tools \>\> Setup \>\> System \>\> Payroll Tax. The Last Tax Update value should be *3/8/2025*.
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