Severance Pay in New York: Calculator & 2026 Guide
Calculate your estimated severance package in New York. New York state tax is 10.9%, for a combined 32.9% withholding rate.
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Estimate your severance package based on your salary, years of service, and industry
New York Severance Pay Laws
New York requires 90 days notice (vs 60 federal) for layoffs affecting 25+ employees (33%+ of workforce) or 250+ employees.
How Severance Is Taxed in New York
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| New York State Tax | 10.9% | $5,450 |
| Total Withholding | 32.9% | $16,450 |
| You Keep | 67.1% | $33,550 |
New York Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in New York
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $14,517 |
| Finance & Banking | 2-4 | $21,635 | $14,517 |
| Healthcare | 1-3 | $14,423 | $9,678 |
| Retail | 0.5-2 | $7,212 | $4,839 |
| Manufacturing | 1-3 | $14,423 | $9,678 |
| Consulting & Professional Services | 2-4 | $21,635 | $14,517 |
| Government | 1-2 | $7,212 | $4,839 |
| Nonprofit | 1-2 | $10,817 | $7,258 |
| Other Industry | 1-3 | $14,423 | $9,678 |
How to Negotiate Severance in New York
New York's WARN Act requires 90 days notice (vs 60 federal). If you got less notice, you may be owed extra pay.
- ✓ 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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New York Severance Pay FAQ
Is severance pay required in New York?▼
No, New York 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 New York?▼
Severance in New York is taxed at 32.9% combined — 22% federal supplemental rate plus 10.9% New York state income tax. On a $50,000 severance, you'd take home approximately $33,550.
What is the WARN Act in New York?▼
New York has an enhanced WARN Act requiring 90 days advance notice (more than the federal 60 days) for layoffs affecting 25+ employees. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in New York?▼
This depends on how your severance is structured. Some New York 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 New York's unemployment office for specific guidance.
Major Employers in New York
Severance Pay in Nearby States
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The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.