Severance Pay in Phoenix, Arizona | 2026 Calculator & Guide

Free Severance Pay Calculator

Estimate your severance package based on your salary, years of service, and industry

Arizona State Law Quick-Reference

No

Mandatory Severance

60 days

WARN Act Notice

24.5%

Est. Combined Withholding

Federal WARN Act requires 60 days notice for layoffs of 50+ employees at companies with 100+ employees. The combined tax rate includes the 22% federal supplemental wage rate and 2.5% Arizona state withholding (estimate).

Major Employers in Phoenix

Intel

Enhanced separation: 3-6 months + extended benefits

Wells Fargo

Salary Continuation Pay Plan (employee-reported via fired.fyi + TheLayoff forum): 8 weeks minimum (under 3 years tenure), then 2 weeks per year of service, capped at 52 weeks. Includes a 60-day paid garden-leave period during which the employee is on payroll with active benefits and 401(k) match continues. Lump-sum or installments at employee election.

Deloitte

2 weeks per year of service (typical Big Four)

Accenture

Based on local labor law + additional company severance

UnitedHealth Group

2 weeks per year of service + transition benefits

Amazon

Employee-reported (never company-confirmed): ~1 week per 6 months of service (≈2 wks/yr), reported floor ~4 weeks, cap ~20 weeks, paid after a ~90-day paid notice window; warehouse tiers reported lower

Top Industries in Phoenix

Salary-Adjusted Severance Examples for Phoenix

Based on the Phoenix median salary of $58,000 ($1,115/week), with 24.5% combined tax withholding

Tenure	Low (1 wk/yr)	Typical (2 wk/yr)	High (3 wk/yr)
2 years	$2,231 $1,684 after tax	$4,462 $3,368 after tax	$6,692 $5,053 after tax
5 years	$5,577 $4,211 after tax	$11,154 $8,421 after tax	$16,731 $12,632 after tax
10 years	$11,154 $8,421 after tax	$22,308 $16,842 after tax	$33,462 $25,263 after tax

Cost of Living Context

100

Cost of Living Index
(National average = 100)

The cost of living in Phoenix matches the national average, so your $11,154 typical severance (5 years tenure) has standard purchasing power.

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When a calculator estimate is not enough

Use your estimate as a starting point, not a final answer. Releases of claims, stock equity, short deadlines, and layoffs involving protected rights all need closer review.

Review Methodology Contact the Team

Phoenix Severance Pay FAQ

How much severance pay is typical in Phoenix?▼

In Phoenix, Arizona, typical severance ranges from 1-3 weeks of pay per year of service. Based on the local median salary of $58,000, a worker with 5 years of tenure can expect between $5,577 and $16,731 in gross severance. However, actual amounts vary significantly by employer, industry, and seniority level.

How is severance taxed in Phoenix, Arizona?▼

Severance pay in Phoenix is taxed at a combined rate of 24.5%: the 22% federal supplemental wage rate plus 2.5% Arizona state income tax. On a $50,000 severance package, you would take home approximately $37,750 after withholding.

Where can I find a severance lawyer in Phoenix?▼

A local attorney familiar with Arizona employment law can review your severance agreement, identify additional leverage, and negotiate better terms. Many employment attorneys in Phoenix offer free initial consultations, so consider consulting a licensed employment attorney in your state.