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?
Severance pay is most commonly calculated as one to two weeks of pay per year of service. To estimate a package: divide annual salary by 52 to get weekly pay, multiply by one to two weeks for each year worked, then adjust for industry, role level, and state withholding. For example, on a $78,000 salary ($1,500 per week) after 6 years, the common formula produces an estimated range of $9,000 to $18,000 before taxes. That is an illustrative estimate, a starting point, not a final figure or a statement of anyone's legal rights. Actual packages vary in both directions, and any specific offer is set by the employer's policy and the agreement's terms.
- •Years of service: the input most public severance formulas weight most heavily.
- •Salary: the formula's base unit is a week of pay (annual salary ÷ 52).
- •Industry norms: technology and finance packages commonly run above retail or hospitality.
- •Role level: senior packages are often described in months rather than weeks.
- •Company policy and agreement terms: the controlling documents for any specific offer.
- •State withholding: the same gross package produces different estimated take-home amounts by state.
The calculator below applies this formula with published industry and role ranges, then estimates federal and state withholding. The full method is on the methodology page.
How The Estimate Is Built
Base Range
The calculator starts with weeks of pay per year of service, which is the most common way severance is described in public employer policies and explanatory guidance.
Industry And Role Adjustments
Typical ranges are adjusted by industry and position level so a director in technology is not treated the same as an hourly retail role.
Withholding Estimate
Estimated take-home figures use federal supplemental wage withholding and the state tax rates listed in our state guides. They are planning estimates, not payroll advice.
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.
Compensation context
Bureau of Labor Statistics data and public compensation references to ground industry and role differences.
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. Benchmark
Compare your offer with the low, typical, and high range rather than focusing on a single number.
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
Compare the ranges that are most common in your sector.
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
13 min read
companiesJPMorgan Severance Package 2026: The $400K Cap Behind the 52-Week Formula
10 min read
Frequently Asked Questions
How is severance pay calculated?▼
The most common formula is one to two weeks of pay per year of service: divide annual salary by 52 to get weekly pay, multiply by one to two weeks for each year worked, then adjust for industry, role level, and company policy. On a $78,000 salary after 6 years, that produces an estimated range of roughly $9,000 to $18,000 before taxes. These are illustrative estimates that vary in both directions. Any specific package is set by the employer's policy or the agreement, not by a standard formula.
How much severance do people with 10 years of service receive?▼
Under the common one-to-two-weeks-per-year formula, packages for 10 years of service commonly fall in the range of 10 to 20 weeks of pay. Senior roles, company policy, equity, and negotiated terms move packages outside that range in both directions. This is an illustrative benchmark, not a statement of what any specific person will receive.
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?▼
A common starting point is 1 to 2 weeks of pay per year of service, but the real range varies by industry, seniority, company policy, and whether legal claims or equity are involved.
Does this calculator show take-home pay?▼
Yes. It estimates federal supplemental wage withholding plus state income tax withholding so you can compare gross and estimated net amounts side by side.
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, get a Severance Score, an estimated benchmark range, potential red flags, and three negotiation angles to consider.
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.