A. State tax withholding cannot be withheld from interim annuity payments. If you are in interim pay (i.e., your case has not been finalized), contact your State tax office for guidance. Once your annuity is finalized, you must specify the dollar amount of State tax you wish to be withheld from your monthly payments. The minimum amount that can be withheld for State income tax is $5. Use Services Online to start, change, or stop the State tax withheld from your annuity payment. You can also call or write to the Office of Personnel Management to change your withholding amount. If you write, your letter should include your full name, your claim number and the monthly amount in dollars you want withheld. If you do not know the monthly amount you want withheld, contact your State tax office for information or assistance. Not all States participate in the voluntary State tax withholding program. Check the list of State tax offices for information about participating States. If your State does not participate, contact the State tax office for information or assistance.