Severance Pay Calculator + Personalised Assessment
Know what afair severance packagelooks like for your role.
Before you sign anything.
Answer a few questions about your offer and we estimate the range packages like yours commonly fall in, flag the terms worth a closer look, and show how every number is worked out, so you can walk in informed.
- Takes about 6 minutes
- Built on your state's rules
- See how every estimate is built
Every estimate is built from published 2026 federal and state withholding rules, with the full method shown. Educational assessment only.
Free Severance Pay Calculator
Estimate your severance package based on your salary, years of service, and industry
What This Calculator Covers
Cash Severance Ranges
Base ranges start with weeks of pay per year of service and then adjust for industry and role level.
Best for standard layoff packages.
Tax Withholding
State-specific withholding is shown so you can compare gross and estimated take-home results.
Uses federal supplemental wage withholding plus state tax rates.
Legal Context
WARN rules, mandatory severance states, and age-related review periods are linked where relevant.
The calculator is a starting point, not legal advice.
Source details, assumptions, and limitations are listed on the methodology page.
How Is Severance Pay Calculated?
This calculator uses annual base salary ÷ 52 × service years × assumed weeks per year × assumed role factor. For example, $78,000 annual base salary, 6 years, an assumed 2 weeks per year and a role factor of 1 give an illustrative gross estimate of $18,000. The industry rates and role factors are product assumptions. The model excludes employer base payments, minimums, caps, bonus, equity and benefits. It does not establish anyone's legal rights or an employer's actual offer. These figures are estimates, a starting point, not a final figure. Your actual package may be higher or lower, and negotiation can move an offer in either direction, including not at all.
- •Years of service: multiplied without a separate employer service-counting rule.
- •Salary: the formula's base unit is a week of pay (annual salary ÷ 52).
- •Industry assumptions: the selected group supplies the model's three weeks-per-year settings.
- •Role assumption: the selected factor scales those model amounts; it is not a measured role premium.
- •Company policy and agreement terms: the controlling documents for any specific offer.
- •Withholding assumptions: fixed 22% federal plus the published state input; FICA, local taxes and cumulative wage thresholds are excluded.
Each result shows its actual inputs, rates, role factor and calculation assumptions. Background methodology is on the methodology page.
How The Estimate Is Built
Base Range
The selected industry supplies lower, middle and upper assumed weeks per service year. No representative payout dataset is supplied for these settings.
Industry And Role Adjustments
An authored role factor scales the industry's model rates. The result explains the exact selected settings and any legacy fallback.
Withholding Estimate
Amounts after the stated income-withholding assumptions use fixed 22% federal plus the published state input. This is a limited illustration, not a payroll or take-home calculation.
Primary Sources We Use
Federal guidance
U.S. Department of Labor guidance on severance and WARN requirements, plus IRS Publication 15 for supplemental wage withholding.
State-specific rules
State labor department materials, state tax references, and state mini-WARN rules where they exist.
Model configuration
The exact industry rates, role factors and salary examples are product settings. The references above do not validate those settings as measured severance outcomes.
Editorial review
The methodology page explains what is directly sourced, what is modeled, how often pages are updated, and how to report a correction.
Severance Tax By State
The same gross package can produce different payment-time estimates depending on state withholding. This illustration applies the optional 22% federal supplemental-wage method plus each state's published method to a separately paid $50,000 payment. It excludes FICA, local taxes, other deductions, and final annual tax liability.
| State | State Withholding Method | Est. After Federal + State Income-Tax Withholding |
|---|---|---|
| Texas | 0%No state income tax2026 rate, verified 23 Aug 2026. Official source | $39,000 |
| Florida | 0%No state income tax2026 rate, verified 23 Aug 2026. Official source | $39,000 |
| Illinois | 4.95%Flat rate2026 rate, verified 23 Aug 2026. Official source | $36,525 |
| New York | 11.7%Published supplemental rate2026 rate, verified 23 Aug 2026. Official source | $33,150 |
| California | 6.6%Published supplemental rate2026 rate, verified 23 Aug 2026. Official source | $35,700 |
These figures are estimates, a starting point, not a final figure. Your actual package may be higher or lower, and negotiation can move an offer in either direction, including not at all. Withholding changes the amount paid now; it does not determine final annual tax liability or establish a right to severance.
This page provides general educational information, not legal, financial, or tax advice. Tax and payroll rules change, and individual circumstances determine final liability. Verify current rules with official sources and consult a qualified tax professional about your situation; consult a licensed employment attorney for questions about an agreement or your legal rights.
For a full state-by-state breakdown, the Severance Pay Tax Calculator estimates federal supplemental withholding plus your state's rate for all 50 states.
How To Use The Result
1. Inspect the model
Read the lower, middle and upper model assumptions before comparing them with a reported offer.
2. Read The Agreement
Look beyond cash: release language, COBRA, equity, bonus treatment, PTO, and non-compete terms can materially change value.
3. Check Edge Cases
Mass layoffs, age-based protections, contracts, and unlawful termination issues can move you outside a standard estimate.
When An Estimate Is Not Enough
- •Your agreement asks you to waive claims, sign quickly, or accept unusual confidentiality or non-compete terms.
- •Your compensation includes stock options, RSUs, deferred compensation, commissions, or a pending bonus.
- •You suspect discrimination, retaliation, wage issues, WARN violations, or a breach of contract.
- •You are relying on the severance amount to make immediate financial decisions and need the agreement reviewed before signing.
Severance Pay By State
Browse state-specific tax withholding, WARN rules, and severance context.
Severance Pay by Company
See the reported formula, recent layoff rounds, and negotiation factors for major US employers. Illustrative estimates, not a statement of your rights.
Industry Severance Guides
Inspect the illustrative model settings used for each industry.
In-Depth Guides
Detailed explainers for severance agreements, layoff rights, taxes, and negotiation.
Complete Severance Negotiation Guide
How to review timing, leverage, and terms before responding.
Understanding Severance Agreements
Key clauses, red flags, and what changes the real value of an offer.
Employee Rights During Layoffs
WARN rules, OWBPA review periods, and what to document.
Severance Tax Implications
How withholding works and why payroll withholding is not always your final tax bill.
Latest From The Blog
Timely reporting and practical analysis on layoffs, severance trends, and state-specific questions.
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legalWhich States Require Severance Pay? The 2026 State-by-State Answer
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companiesJPMorgan Severance Package 2026: The $400K Cap Behind the 52-Week Formula
10 min read
Frequently Asked Questions
How is severance pay calculated?▼
This calculator divides annual base salary by 52, then multiplies by service years, the selected industry's assumed weeks per year and the assumed role factor. For example, $78,000 divided by 52, multiplied by 6 years, an assumed 2 weeks per year and a role factor of 1 gives an illustrative gross estimate of $18,000. These settings are product assumptions, not a measured national formula or an employer policy. Actual terms may differ in either direction, including no payment.
How much severance do people with 10 years of service receive?▼
Ten years alone does not establish a package. In a selected formula using 2 weeks per year and a role factor of 1, ten service years give 20 model weeks. Other assumptions give different examples. This does not establish an employer's terms, a typical payout or a legal entitlement.
Is severance pay required by law?▼
Usually no. Most severance packages are based on company policy, contracts, or negotiated agreements. New Jersey and Maine have special rules for certain layoffs, and the WARN Act may require notice or pay in lieu of notice.
How much severance is typical?▼
The calculator's lower, middle and upper values are illustrations from authored industry rates and role factors. They are not measured market averages or a prediction of what an employer will offer. The actual policy, agreement and other terms need separate review.
Does this calculator show take-home pay?▼
No. It shows an amount after fixed 22% federal and any included state income-withholding assumptions. It excludes FICA, local taxes, cumulative wage thresholds, other deductions and final annual tax. It does not establish a payroll or take-home payment. The separate severance tax calculator supports additional withholding inputs.
What does the calculator not know?▼
It does not know your employment contract, company severance plan, collective bargaining agreement, release terms, equity package, bonus rules, or any legal claims tied to your separation.
Can I negotiate severance?▼
Often yes. The strongest negotiation leverage usually comes from long tenure, equity, bonus treatment, non-compete language, WARN issues, discrimination or retaliation concerns, and how urgently the employer wants a signed release.
When should I rely on individual advice instead of a calculator?▼
If your agreement includes a release of claims, stock options or RSUs, deferred compensation, a non-compete, a short signing deadline, or you think the termination may have been unlawful, use the calculator only as background and get individualized advice.
Use The Calculator With The Methodology
The strongest use of this site is combining the estimate with the explanation of what the estimate can and cannot capture.
Check your situation, not just the headline.
Add your role, tenure, offer terms, and circumstances to get a more complete educational assessment.
In about 6 minutes, organise reported terms and unknowns. Cash comparisons depend on the details provided; without an offer, the focus is preparation. The free summary has an optional paid report with a saved record and self-completed resources.
Check My Situation →Takes about 6 minutes
Free to complete. The full report is a one-time paid purchase, offered after your free preview.
SeveranceCalc is not a law firm and does not provide legal advice. Our calculators and reports are educational estimates only. Only a licensed employment attorney in your state can advise you on your specific legal rights.