Severance Pay Tax Calculator
Enter your lump-sum severance to see what is withheld for federal tax, Social Security, Medicare and state tax, and what reaches your account. Choose your state to fill in the rate it withholds from severance; the table below lists every state's method, rate and rule.
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Net Severance (Take-Home)
Estimated • Based on your inputs
Total Tax Withheld
$2,965.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How this calculator works
IRS Publication 15 lists severance pay among supplemental wages, so a lump sum paid on its own can be withheld at the flat federal rate: 22% of the year's supplemental wages up to $1,000,000 and 37% above. The state line is the payment times the rate you enter; the picker fills each state's published flat rate, or, where a state has none, the estimate in the table. Social Security takes 6.2% until your wages for the year reach the wage base, and Medicare 1.45% of all of it, plus 0.9% on wages above $200,000. Severance paid as salary continuation on regular paydays may instead be withheld like a paycheck. Withholding is a prepayment, not the final tax: the payment is taxed with the rest of the year's income on your return.
Source: IRS Publication 15 (2026); state withholding publications as listed checked
Severance withholding by state
Each row runs the calculator on $10,000 of severance paid as a lump sum after $60,000 of earlier wages. The federal withholding ($2,200) and Social Security and Medicare ($765) are the same in every state.
| State | Method | Severance rate | State tax on $10,000 | Take-home | Where the rate comes from |
|---|---|---|---|---|---|
| Alabama | Flat supplemental rate | 5% | $500 | $6,535 | Employers may withhold from bonuses and supplemental wage payments at 5%. |
| Alaska | None (no wage tax) | 0% | $0 | $7,035 | No Alaska income tax on wages. |
| Arizona | With regular pay (estimate) | 2% | $200 | $6,835 | Arizona has no separate bonus rate: employers withhold the percentage of gross pay the employee elected on Form A-4 (0.5% to 3.5%), or 2.0% if no Form A-4 is on file. Estimate used: the 2.0% Arizona employers withhold when an employee has not filed Form A-4. |
| Arkansas | Flat supplemental rate | 3.9% | $390 | $6,645 | If bonuses, commissions or overtime are paid with regular wages, deduct 3.9% of the bonus or commission; the department warns this can over-withhold until the return is filed. |
| California | Flat supplemental rate | 6.6% | $660 | $6,375 | Bonuses and stock options: 10.23%. Other supplemental wages (overtime, commissions, sales awards, severance, back pay): 6.6%. Severance is named among the other supplemental wages. |
| Colorado | With regular pay (estimate) | 4.4% | $440 | $6,595 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Colorado's flat 4.4% income-tax rate. |
| Connecticut | With regular pay (estimate) | 5.5% | $550 | $6,485 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the Connecticut income-tax bracket rate that applies at $60,000 of annual wages (5.5%), before state deductions and credits. |
| Delaware | With regular pay (estimate) | 5.55% | $555 | $6,480 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the Delaware income-tax bracket rate that applies at $60,000 of annual wages (5.55%), before state deductions and credits. |
| Florida | None (no wage tax) | 0% | $0 | $7,035 | No Florida income tax on wages. |
| Georgia | With regular pay (estimate) | 4.99% | $499 | $6,536 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Georgia's flat 4.99% income-tax rate. |
| Hawaii | With regular pay (estimate) | 7.6% | $760 | $6,275 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the Hawaii income-tax bracket rate that applies at $60,000 of annual wages (7.6%), before state deductions and credits. |
| Idaho | Flat supplemental rate | 5.3% | $530 | $6,505 | Either combine the supplemental payment with regular wages and treat it as one payment, or multiply a separately issued supplemental payment by 5.3%. |
| Illinois | With regular pay (estimate) | 4.95% | $495 | $6,540 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Illinois's flat 4.95% income-tax rate. |
| Indiana | With regular pay (estimate) | 2.95% | $295 | $6,740 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Indiana's flat 2.95% income-tax rate. |
| Iowa | Flat supplemental rate | 3.8% | $380 | $6,655 | If federal tax is withheld at the flat rate, Iowa tax is withheld at the highest individual rate (3.8%); a supplemental payment included with regular wages uses the tables (Iowa Admin. Code 701-307.2(1)"c"). |
| Kansas | Flat supplemental rate | 5% | $500 | $6,535 | If the supplemental wage is stated separately and federal tax is withheld as a percentage of it, Kansas withholding is 5% of the gross payment; otherwise use the same combined method as federal. |
| Kentucky | With regular pay (estimate) | 3.5% | $350 | $6,685 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Kentucky's flat 3.5% income-tax rate. |
| Louisiana | With regular pay (estimate) | 3% | $300 | $6,735 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Louisiana's flat 3% income-tax rate. |
| Maine | Flat supplemental rate | 5% | $500 | $6,535 | Supplemental wages paid with regular wages are withheld as one payment; if paid separately, the payer may withhold a flat 5%. |
| Maryland | With regular pay (estimate) | 4.75% | $475 | $6,560 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the Maryland income-tax bracket rate that applies at $60,000 of annual wages (4.75%), before state deductions and credits. |
| Massachusetts | With regular pay (estimate) | 5% | $500 | $6,535 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the Massachusetts income-tax bracket rate that applies at $60,000 of annual wages (5%), before state deductions and credits. |
| Michigan | With regular pay (estimate) | 4.25% | $425 | $6,610 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Michigan's flat 4.25% income-tax rate. |
| Minnesota | Flat supplemental rate | 6.25% | $625 | $6,410 | Supplemental payments made separately from regular wages: multiply by 6.25%. Paid with regular wages: combine them (Method 1) or, if listed separately, Method 1 or 2. |
| Mississippi | With regular pay (estimate) | 4% | $400 | $6,635 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the Mississippi income-tax bracket rate that applies at $60,000 of annual wages (4%), before state deductions and credits. |
| Missouri | Flat supplemental rate | 4.7% | $470 | $6,565 | Supplemental pay included with normal wages goes through the formula; paid separately, withhold a flat 4.7% or add it to the period's regular wages. |
| Montana | Flat supplemental rate | 5% | $500 | $6,535 | Supplemental wages paid separately (for example, a holiday bonus): combine with the current or last payroll period's wages, or withhold a flat 5%. |
| Nebraska | Flat supplemental rate | 3.5% | $350 | $6,685 | Paid with regular wages: one combined payment. Paid at a different time: combine with the current or last payroll period, or elect a flat 3.5%. |
| Nevada | None (no wage tax) | 0% | $0 | $7,035 | No Nevada income tax on wages. |
| New Hampshire | None (no wage tax) | 0% | $0 | $7,035 | New Hampshire does not tax wages. |
| New Jersey | With regular pay (estimate) | 5.525% | $553 | $6,483 | Paid with regular wages: total both and withhold on the combined payment. Paid at a different time: withhold from the supplemental wages without the exemption allowances claimed on Form NJ-W4. Estimate used: the New Jersey income-tax bracket rate that applies at $60,000 of annual wages (5.525%), before state deductions and credits. |
| New Mexico | Flat supplemental rate | 5.9% | $590 | $6,445 | Use the same method as federal; if federal withholding is a flat percent, withhold a flat 5.9% of the supplemental wage for New Mexico. |
| New York | Flat supplemental rate | 11.7% | $1,170 | $5,865 | If New York tax is withheld from regular wages, withhold 11.70% on separately paid or separately stated supplemental wages, or use the aggregate method; if not, use the aggregate method. New York City residents also have New York City tax withheld, at its own 4.25% supplemental rate under the same rule (NYS-50-T-NYC, 1/26). |
| North Carolina | Flat supplemental rate | 4.09% | $409 | $6,626 | If tax is withheld from regular wages, withhold a flat 4.09% on separately paid or specified supplemental wages, or use the aggregate method; if not, the aggregate method. |
| North Dakota | Flat supplemental rate | 1.5% | $150 | $6,885 | Supplemental wages paid separately or separately identified: multiply by 1.5%, or use the aggregate method. |
| Ohio | Flat supplemental rate | 2.75% | $275 | $6,760 | Supplemental compensation (bonuses, commissions and other nonrecurring payments) is withheld at the highest rate in R.C. 5747.02(A)(3) for the taxable year; school-district income tax is withheld at the employee's district rate. |
| Oklahoma | Flat supplemental rate | 4.5% | $450 | $6,585 | If tax was withheld from regular wages, withhold at the highest rate in 68 O.S. 2355(B)(1) for the year (4.5% in the 2026 tables) or use the aggregate method (OAC 710:90-1-6). |
| Oregon | Flat supplemental rate | 8% | $800 | $6,235 | Employers may use an 8% flat rate on supplemental wages paid at a different time than the regular payday. |
| Pennsylvania | With regular pay (estimate) | 3.07% | $307 | $6,728 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Pennsylvania's flat 3.07% income-tax rate. |
| Rhode Island | Flat supplemental rate | 5.99% | $599 | $6,436 | The supplemental withholding rate is 5.99%; supplemental wages paid with regular wages are withheld as one payment. |
| South Carolina | With regular pay (estimate) | 5.21% | $521 | $6,514 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the South Carolina income-tax bracket rate that applies at $60,000 of annual wages (5.21%), before state deductions and credits. |
| South Dakota | None (no wage tax) | 0% | $0 | $7,035 | No South Dakota income tax on wages. |
| Tennessee | None (no wage tax) | 0% | $0 | $7,035 | No Tennessee income tax on wages. |
| Texas | None (no wage tax) | 0% | $0 | $7,035 | No Texas income tax on wages. |
| Utah | With regular pay (estimate) | 4.45% | $445 | $6,590 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: Utah's flat 4.45% income-tax rate. |
| Vermont | Flat supplemental rate | 6.6% | $660 | $6,375 | For non-periodic payments, Vermont withholding can be estimated at 30% of the federal withholding (30% of the 22% federal supplemental rate is 6.6%). |
| Virginia | Flat supplemental rate | 5.75% | $575 | $6,460 | Paid separately: the aggregate method, or, if tax was withheld from regular wages, a flat 5.75%. |
| Washington | None (no wage tax) | 0% | $0 | $7,035 | No Washington income tax on wages. |
| West Virginia | With regular pay (estimate) | 4.22% | $422 | $6,613 | No separate supplemental rate in the payroll chart the rate table started from (not re-read against the state guide). Estimate used: the West Virginia income-tax bracket rate that applies at $60,000 of annual wages (4.22%), before state deductions and credits. |
| Wisconsin | Flat supplemental rate | 5.3% | $530 | $6,505 | Wisconsin's approved flat supplemental percentages depend on the employee's estimated annual gross salary: 3.54% under $12,760, 4.65% to $25,520, 5.30% to $280,950 and 7.65% above (Publication W-166). |
| Wyoming | None (no wage tax) | 0% | $0 | $7,035 | No Wyoming income tax on wages. |
Flat rates: each state's 2026 withholding publication, read 2026-10-08. An estimated rate is this site's reading of the state's income-tax brackets at $60,000 a year (Arizona: the 2.0% withheld when no Form A-4 is on file); your employer's figure depends on your withholding certificate and pay schedule. New York City residents also have city tax withheld at 4.25% on supplemental wages.
- Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers (revised January 2026)
- Arizona Department of Revenue, Withholding Tax (Form A-4 election)
- Arkansas DFA, Withholding Tax Instructions for Employers (2026)
- California EDD, California Employer's Guide DE 44 (2026)
- Idaho State Tax Commission, Computing Idaho withholding: supplemental wages
- Iowa Department of Revenue, Withholding Tax Information: supplemental wages
- Kansas Department of Revenue, KW-100 Kansas Withholding Tax Guide (rev. 10-24)
- Maine Revenue Services, 2026 Withholding Tables for Individual Income Tax (instructions)
- Minnesota Department of Revenue, Supplemental Payments
- Missouri Department of Revenue, 2026 Missouri Withholding Tax Formula
- Montana Department of Revenue, Employer and Information Agent Guide with Montana Withholding Tax Tables (V4, November 2025)
- Nebraska Department of Revenue, Nebraska Circular EN, Income Tax Withholding on Wages (paid on or after January 1, 2026)
- New Jersey Division of Taxation, NJ-WT New Jersey Income Tax Withholding Instructions (September 2025)
- New Mexico Taxation and Revenue, FYI-104 New Mexico Withholding Tax (rev. 11/2025, effective January 1, 2026)
- NYS Department of Taxation and Finance, NYS-50-T-NYS New York State Withholding Tax Tables and Methods (effective January 1, 2026)
- North Carolina Department of Revenue, NC-30 2026 Income Tax Withholding Tables and Instructions for Employers
- North Dakota Office of State Tax Commissioner, Income Tax Withholding: supplemental wages
- Ohio Administrative Code 5703-7-10, Withholding on supplemental compensation (effective January 1, 2026)
- Oklahoma Tax Commission, OAC 710:90-1-6 Supplemental wages (2026) and Packet OW-2 2026 Withholding Tables
- Oregon Department of Revenue, Withholding Tax Formulas (effective January 1, 2026)
- Rhode Island Division of Taxation, 2026 Employer's Income Tax Withholding Tables
- Vermont Department of Taxes, GB-1210 2026 Income Tax Withholding Instructions, Tables, and Charts
- Virginia Department of Taxation, Employer Withholding Instructions
- Wisconsin Department of Revenue, Publication W-166 Withholding Tax Guide
- IRS Publication 15 (Circular E), supplemental wages
Frequently Asked Questions
How much tax comes out of a severance check?
On $10,000 paid as a lump sum after $60,000 of earlier wages, $2,200 of federal income tax and $765 of Social Security and Medicare are withheld wherever you live. The state adds nothing in the 9 states without a wage tax and up to $1,170 in New York (11.7%); the lowest withholding of the others is North Dakota's 1.5%.
Is severance withheld at the same rate as a bonus?
Federally, yes: both are supplemental wages under the same 22% rule. Most states also use one supplemental rate for both. California does not: its employer guide (DE 44) sets 10.23% for bonuses and stock options and 6.6% for other supplemental wages, severance named, so a California severance check is withheld at 6.6%.
What is my state's withholding rate on severance?
22 states publish a flat rate for supplemental wages paid on their own; 19 have no separate rate, so the employer withholds as if the payment were added to regular pay, which the table estimates; 9 do not withhold income tax from wages. Choose your state above or find its row below with the publication it comes from.
Can severance go into a 401(k)?
Usually not. Plan documents generally count only pay for work done while you were still employed, and severance paid after you leave is typically outside that, even though it is taxed as wages. Your plan document has the answer for your employer.
All Calculators
Arizona Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Arizona. See federal 22% supplemental withholding, Arizona's 2% state rate, and FICA — your real net severance.
California Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in California. See federal 22% supplemental withholding, California's 6.6% state rate, and FICA — your real net severance.
Colorado Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Colorado. See federal 22% supplemental withholding, Colorado's 4.4% state rate, and FICA — your real net severance.
Connecticut Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Connecticut. See federal 22% supplemental withholding, Connecticut's 5.5% state rate, and FICA — your real net severance.
Florida Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Florida. See federal 22% supplemental withholding, Florida's 0% state rate, and FICA — your real net severance.
Georgia Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Georgia. See federal 22% supplemental withholding, Georgia's 4.99% state rate, and FICA — your real net severance.
Illinois Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Illinois. See federal 22% supplemental withholding, Illinois's 4.95% state rate, and FICA — your real net severance.
Iowa Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Iowa. See federal 22% supplemental withholding, Iowa's 3.8% state rate, and FICA — your real net severance.
Kentucky Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Kentucky. See federal 22% supplemental withholding, Kentucky's 3.5% state rate, and FICA — your real net severance.
Maryland Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Maryland. See federal 22% supplemental withholding, Maryland's 4.75% state rate, and FICA — your real net severance.
Massachusetts Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Massachusetts. See federal 22% supplemental withholding, Massachusetts's 5% state rate, and FICA — your real net severance.
Michigan Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Michigan. See federal 22% supplemental withholding, Michigan's 4.25% state rate, and FICA — your real net severance.
Minnesota Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Minnesota. See federal 22% supplemental withholding, Minnesota's 6.25% state rate, and FICA — your real net severance.
Missouri Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Missouri. See federal 22% supplemental withholding, Missouri's 4.7% state rate, and FICA — your real net severance.
Nevada Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Nevada. See federal 22% supplemental withholding, Nevada's 0% state rate, and FICA — your real net severance.
New Jersey Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in New Jersey. See federal 22% supplemental withholding, New Jersey's 5.525% state rate, and FICA — your real net severance.
New Mexico Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in New Mexico. See federal 22% supplemental withholding, New Mexico's 5.9% state rate, and FICA — your real net severance.
New York Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in New York. See federal 22% supplemental withholding, New York's 11.7% state rate, and FICA — your real net severance.
North Carolina Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in North Carolina. See federal 22% supplemental withholding, North Carolina's 4.09% state rate, and FICA — your real net severance.
Ohio Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Ohio. See federal 22% supplemental withholding, Ohio's 2.75% state rate, and FICA — your real net severance.
Oklahoma Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Oklahoma. See federal 22% supplemental withholding, Oklahoma's 4.5% state rate, and FICA — your real net severance.
Oregon Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Oregon. See federal 22% supplemental withholding, Oregon's 8% state rate, and FICA — your real net severance.
Pennsylvania Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Pennsylvania. See federal 22% supplemental withholding, Pennsylvania's 3.07% state rate, and FICA — your real net severance.
Rhode Island Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Rhode Island. See federal 22% supplemental withholding, Rhode Island's 5.99% state rate, and FICA — your real net severance.
South Carolina Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in South Carolina. See federal 22% supplemental withholding, South Carolina's 5.21% state rate, and FICA — your real net severance.
Tennessee Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Tennessee. See federal 22% supplemental withholding, Tennessee's 0% state rate, and FICA — your real net severance.
Texas Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Texas. See federal 22% supplemental withholding, Texas's 0% state rate, and FICA — your real net severance.
Utah Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Utah. See federal 22% supplemental withholding, Utah's 4.45% state rate, and FICA — your real net severance.
Vermont Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Vermont. See federal 22% supplemental withholding, Vermont's 6.6% state rate, and FICA — your real net severance.
Virginia Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Virginia. See federal 22% supplemental withholding, Virginia's 5.75% state rate, and FICA — your real net severance.
Washington Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Washington. See federal 22% supplemental withholding, Washington's 0% state rate, and FICA — your real net severance.
West Virginia Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in West Virginia. See federal 22% supplemental withholding, West Virginia's 4.22% state rate, and FICA — your real net severance.
Wisconsin Severance Pay Tax Calculator
Calculate how much of your severance package you'll actually take home in Wisconsin. See federal 22% supplemental withholding, Wisconsin's 5.3% state rate, and FICA — your real net severance.