If you're trying to estimate the amount paid after withholding, your state's payment-time method is one important variable. Local taxes, year-to-date wages, federal method, payroll deductions, and final annual tax liability also matter.
Below is the full 50-state + DC table of the method each state publishes for separately paid severance, plus the optional federal 22% method. Each row links to a dedicated calculator page. For a single tool covering every state, the Severance Pay Tax Calculator estimates federal income-tax, federal payroll-tax, and state income-tax lines in one place.
The federal layer applies the same everywhere
Before getting to state specifics, the federal layer is identical across all US jurisdictions:
| Federal layer | Rate | Applies to | |---|---|---| | Federal supplemental withholding | 22% optional method | Qualifying separately identified supplemental wages when the IRS conditions are met | | Federal supplemental (cumulative threshold) | 37% mandatory method | The portion taking cumulative supplemental wages from that employer above $1M in the calendar year | | Social Security (FICA) | 6.2% | Wages up to the annual wage base ($184,500 for 2026) | | Medicare (FICA) | 1.45% | All wages, no cap | | Additional Medicare withholding | +0.9% | Employer withholding begins after Medicare wages it pays exceed $200K; final liability uses filing-status thresholds |
The optional 22% method is described in IRS Publication 15 for supplemental wages including severance. Payroll may use an aggregate method when its conditions are met. Withholding is a prepayment: final federal tax is calculated from the full annual return.
The state layer: full 2026 table
Every row was read from the state revenue department's own 2026 publication (linked) on 23 August 2026. The state rate shown is the rate the state's method implies for a separately paid severance: it is an estimate of withholding, not your final state tax. Where no 2026 publication could be confirmed, no figure is shown.
No state income tax on wages (9 states)
These states do not add state individual income-tax withholding on wages. Federal income-tax and payroll-tax lines can still apply.
| State | 2026 state withholding (estimate) | Combined with federal 22% | Source | Calculator | |---|---|---|---|---| | Alaska | 0% (no income tax on wages) | 22% | Alaska Department of Revenue, Tax Division: Personal Income | → | | Florida | 0% (no income tax on wages) | 22% | Florida DOR GT-800025 Tax Information for New Residents (R.... | → | | Nevada | 0% (no income tax on wages) | 22% | Nevada Tax Notes, Issue 194 (Nevada Department of Taxation) | → | | New Hampshire | 0% (no income tax on wages) | 22% | Interest and Dividends Tax, NH Department of Revenue Adminis... | → | | South Dakota | 0% (no income tax on wages) | 22% | Taxes, South Dakota Department of Revenue | → | | Tennessee | 0% (no income tax on wages) | 22% | GEN-34 Income Tax Withholding, Tennessee Department of Reven... | → | | Texas | 0% (no income tax on wages) | 22% | Texas Comptroller Fiscal Notes (Dec 2025) | → | | Washington | 0% (no income tax on wages) | 22% | Income tax, Washington Department of Revenue | → | | Wyoming | 0% (no income tax on wages) | 22% | Wyoming Department of Administration and Information | → |
Flat-rate states
A single income-tax rate that is also the withholding rate on a separately paid severance.
| State | 2026 state withholding (estimate) | Combined with federal 22% | Source | Calculator | |---|---|---|---|---| | Arizona | 2.5% | 24.5% | Arizona Department of Revenue: Withholding Tax, Individual | → | | Colorado | 4.4% | 26.4% | Colorado DR 1098 (10/21/25) 2026 Colorado Withholding Worksh... | → | | Georgia | 4.99% | 26.99% | Georgia DOR Employer's Withholding Tax Guide 2026, Revised J... | → | | Idaho | 5.3% | 27.3% | Idaho State Tax Commission, Computing Withholding (2026 tabl... | → | | Illinois | 4.95% | 26.95% | 2026 Booklet IL-700-T, Illinois Withholding Tax Tables (R-12... | → | | Indiana | 2.95% | 24.95% | Indiana DOR Departmental Notice #1, effective Jan. 1, 2026 | → | | Iowa | 3.8% | 25.8% | Iowa Withholding Tax Information, Iowa Department of Revenue... | → | | Kentucky | 3.5% | 25.5% | 2026 Kentucky Withholding Tax Formula (42A003) | → | | Louisiana | 3.09% | 25.09% | Louisiana Withholding Tables and Formulas R-1306 (1/26) | → | | Massachusetts | 5% | 27% | Massachusetts Circular M, effective January 1, 2026 (Rev. 12... | → | | Michigan | 4.25% | 26.25% | 446 (Rev. 02-26) 2026 Michigan Income Tax Withholding Guide | → | | Ohio | 2.75% | 24.75% | Employer Withholding, Ohio Department of Taxation (tax rates... | → | | Pennsylvania | 3.07% | 25.07% | Employer Withholding, Pennsylvania Department of Revenue | → | | Utah | 4.45% | 26.45% | Publication 14, Withholding Tax Guide (Rev. 04/26), Utah Sta... | → |
States with a published supplemental-wage rate
The state publishes a flat percentage employers may use for a separately paid bonus or severance; payroll may instead use the aggregate (tables) method.
| State | 2026 state withholding (estimate) | Combined with federal 22% | Source | Calculator | |---|---|---|---|---| | Alabama | 5% | 27% | Alabama DOR Withholding Tax Tables and Instructions, Revised... | → | | Arkansas | 3.7% | 25.7% | Arkansas DFA Withholding Tax Employer's Instructions, effect... | → | | California | 6.6% | 28.6% | EDD 2026 California Employer's Guide (DE 44 Rev. 52 (4-26)),... | → | | Kansas | 5% | 27% | KW-100 Kansas Withholding Tax Guide (Rev. 10-24), current fo... | → | | Maine | 5% | 27% | Maine Revenue Services 2026 Withholding Tables and instructi... | → | | Maryland | 6.5% | 28.5% | Maryland Employer Withholding Guide, effective January 2026 | → | | Minnesota | 6.25% | 28.25% | Minnesota Income Tax Withholding Instruction Booklet, Jan. 1... | → | | Missouri | 4.7% | 26.7% | Missouri Employer's Tax Guide, Form 4282 (Rev. 03-2026) | → | | Montana | 5% | 27% | Montana Employer and Information Agent Guide with Withholdin... | → | | Nebraska | 3.5% | 25.5% | 2026 Nebraska Circular EN (Rev. 11-2025) | → | | New Mexico | 5.9% | 27.9% | FYI-104 New Mexico Withholding Tax, effective January 1, 202... | → | | New York | 11.7% | 33.7% | NYS-50-T-NYS (1/26) New York State Withholding Tax Tables an... | → | | North Carolina | 4.09% | 26.09% | NC-30, 2026 Income Tax Withholding Tables and Instructions f... | → | | North Dakota | 1.5% | 23.5% | North Dakota Income Tax Withholding Rates and Instructions,... | → | | Oregon | 8% | 30% | Oregon Withholding Tax Formulas 150-206-436 (Rev. 12-31-25),... | → | | Rhode Island | 5.99% | 27.99% | 2026 Rhode Island Employer's Income Tax Withholding Tables | → | | Virginia | 5.75% | 27.75% | Income Tax Withholding Guide for Employers, Virginia Tax (Re... | → | | Wisconsin | 5.3% | 27.3% | Wisconsin Withholding Tax Guide, Publication W-166 (1/26) | → |
Aggregate-method states (no published flat rate)
Withholding follows the state tables, so the figure depends on your pay-period bracket. The percentage shown is the top bracket, an upper bound, not the rate payroll will necessarily apply.
| State | 2026 state withholding (estimate) | Combined with federal 22% | Source | Calculator | |---|---|---|---|---| | Connecticut | up to 6.99% (top bracket; tables apply) | up to 28.99% | Connecticut DRS IP 2026(1) Circular CT Employer's Tax Guide,... | → | | Delaware | not verified for 2026; confirm with payroll | 22% + state | Delaware Division of Revenue Employer's Guide (tax computati... | → | | District of Columbia | up to 10.75% (top bracket; tables apply) | up to 32.75% | DC Office of Tax and Revenue, Individual Income Tax Rates (t... | → | | Hawaii | up to 7.9% (top bracket; tables apply) | up to 29.9% | Hawaii Booklet A Employer's Tax Guide (Rev. 2025), appendix... | → | | Mississippi | up to 4% (top bracket; tables apply) | up to 26% | Mississippi DOR Pub 89-700, withholding tables effective Jan... | → | | New Jersey | up to 11.8% (top bracket; tables apply) | up to 33.8% | New Jersey Withholding Rate Tables, percentage method (wages... | → | | Oklahoma | up to 4.5% (top bracket; tables apply) | up to 26.5% | Packet OW-2 (Rev. 11-2025), 2026 Oklahoma Income Tax Withhol... | → | | South Carolina | up to 6% (top bracket; tables apply) | up to 28% | WH-1603F Formula for Computing South Carolina 2026 Withholdi... | → | | Vermont | up to 8.75% (top bracket; tables apply) | up to 30.75% | GB-1210 2026 Income Tax Withholding Instructions, Tables, an... | → | | West Virginia | up to 4.58% (top bracket; tables apply) | up to 26.58% | 2026 Income Tax Rate Cut, West Virginia Tax Division (SB 392... | → |
Local add-ons are not included: county income tax in Indiana and Maryland, city taxes in Michigan, Ohio, Missouri and Pennsylvania, and New York City (4.25% supplemental) and Yonkers. California withholds 10.23% rather than 6.6% on bonuses and stock options. Wisconsin's flat percentage varies by annual salary tier.
What the modelled lines mean for payment-time estimates
The illustration below applies the optional 22% federal method, each listed state method, and 7.65% FICA to a $50,000 gross severance. It assumes the full Social Security wage base remains available. It excludes state payroll deductions such as California SDI, other deductions, and final annual tax liability.
| State | Gross | Income-tax withholding estimate | FICA estimate | Estimated payment after modelled lines | |---|---|---|---|---| | Texas | $50,000 | $11,000 (22%) | $3,825 | $35,175 | | Illinois | $50,000 | $13,475 (26.95%) | $3,825 | $32,700 | | California | $50,000 | $14,300 (28.6%) | $3,825 | $31,875 | | New York | $50,000 | $16,850 (33.7%) | $3,825 | $29,325 | | New York City | $50,000 | $18,975 (37.95%, incl. 4.25% NYC) | $3,825 | $27,200 |
The modelled difference between Texas and New York City is $7,975. This is an illustrative payment-time comparison, not a prediction of either person's final tax. Actual withholding and final liability may be higher or lower.
Mandatory severance and tax treatment
Two states describe severance requirements for some qualifying mass layoffs:
- New Jersey: for covered NJ WARN events, 1 week per full year of employment even with full notice, plus 4 additional weeks for insufficient 90-day notice. Coverage generally involves employers with 100+ employees, 50+ terminations within 30 days at or reporting to a New Jersey establishment operating for more than three years, and other coverage and aggregation conditions. A licensed New Jersey employment attorney can assess applicability. NJDOL statutory text, NJ summary checked 6 September 2026.
- Maine: 1 week per year of service for employees with 3+ years tenure at a covered establishment (one that employed 100+ people in the preceding 12 months)
Employer size, establishment, event, tenure, timing, and statutory exceptions determine coverage. A covered payment may still be treated as supplemental wages, but the applicable payroll method should be confirmed independently. A licensed employment attorney can assess whether a statute applies to a specific event.
Why the optional 22% method may differ from final liability
The optional 22% federal method is a payment-time prepayment, not a marginal tax-rate determination. Total annual income, filing status, deductions, credits, and other payments determine the tax calculated on the return.
State withholding works the same way: a published supplemental percentage or aggregate-table calculation does not determine final state liability. A qualified tax professional can compare withholding with the full return and explain estimated-payment rules. Payroll can explain which method and year-to-date wage figures it used.
State-specific severance topics worth knowing
Beyond the headline withholding rate, several state-specific issues affect severance recipients:
- California: EDD publishes a 1.3% SDI rate for 2026 and lists severance as subject unless specified statutory conditions apply. California generally restricts employment non-competes, subject to statutory scope and exceptions. See the California SDI article.
- New York: State and New York City income-tax withholding can stack. New York WARN has its own employer, event, location, and exception conditions.
- New Jersey: Its mass-layoff statute describes severance for some covered events; every coverage condition matters.
- Texas / Florida / Washington: No state individual income tax on wages. Federal income-tax and payroll-tax lines can still apply, and sourcing or residency questions require a complete facts review.
- Pennsylvania: 3.07% flat state tax + local Earned Income Tax that varies by municipality (typically 1-3%).
For your specific state, the dedicated calculator page above links to the full state-by-state legal overlay and worked examples.
Methodology + sources
Rates in this article are 2026 figures read from each state revenue department's own withholding publication (linked in the table) on 23 August 2026, plus IRS Publication 15 for federal supplemental withholding. Each row records the state's method (no tax, flat rate, published supplemental rate, or aggregate tables) so a top-bracket upper bound is never presented as a flat rate. The same table drives the severance tax calculator and the state calculators.
The rates shown are published methods or method-labelled upper bounds, not promises of what every employer must withhold. Payroll may use another permitted method. Final tax reconciles on Form 1040 and the relevant state return.
Tax law changes annually and several states step rates down each January. This article reflects the 2026 publications as read on 23 August 2026; after the tax year rolls over, the calculators label each state figure as a prior-year rate until it is re-verified. If a rate here looks out of date, the linked source is the authority.
Use the severance calculator for an illustrative package estimate, or the severance tax calculator for the modelled federal, FICA, and state income-tax lines. Neither tool calculates final tax or determines legal rights.
Updated 29 August 2026: payment-time methods, New York references, payroll-tax conditions, and statutory coverage language were corrected and clarified.