Severance Pay in California: Calculator & 2026 Guide
Calculate your estimated severance package in California. California state tax is 12.3%, for a combined 34.3% withholding rate.
Free Severance Pay Calculator
Estimate your severance package based on your salary, years of service, and industry
California Severance Pay Laws
California Cal-WARN applies to employers with 75+ employees. Non-compete clauses are not enforceable in CA.
How Severance Is Taxed in California
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| California State Tax | 12.3% | $6,150 |
| Total Withholding | 34.3% | $17,150 |
| You Keep | 65.7% | $32,850 |
California Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in California
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $14,214 |
| Finance & Banking | 2-4 | $21,635 | $14,214 |
| Healthcare | 1-3 | $14,423 | $9,476 |
| Retail | 0.5-2 | $7,212 | $4,738 |
| Manufacturing | 1-3 | $14,423 | $9,476 |
| Consulting & Professional Services | 2-4 | $21,635 | $14,214 |
| Government | 1-2 | $7,212 | $4,738 |
| Nonprofit | 1-2 | $10,817 | $7,107 |
| Other Industry | 1-3 | $14,423 | $9,476 |
How to Negotiate Severance in California
California bans non-compete clauses entirely, giving you strong leverage — your employer can't restrict where you work next.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
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California Severance Pay FAQ
Is severance pay required in California?▼
No, California does not have a state law requiring employers to provide severance pay. However, the federal WARN Act may require 60 days notice or pay in lieu of notice for large layoffs.
How is severance taxed in California?▼
Severance in California is taxed at 34.3% combined — 22% federal supplemental rate plus 12.3% California state income tax. On a $50,000 severance, you'd take home approximately $32,850.
What is the WARN Act in California?▼
The federal WARN Act applies in California, requiring employers with 75+ employees to give 60 days advance notice for mass layoffs of 50+ workers. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in California?▼
This depends on how your severance is structured. Some California workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact California's unemployment office for specific guidance.
Major Employers in California
Severance Pay in Nearby States
📋 Free Severance Negotiation Checklist
The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.