State Supplemental Wage Withholding Rates
Per-state flat rates for withholding state income tax from severance pay, where states publish a separate supplemental rate.
States with a separate supplemental withholding rate
These states publish a flat rate for withholding state income tax from severance pay and other supplemental wages. Verify the current rate with your state Department of Revenue before withholding.
| State | Supplemental rate |
|---|---|
| California | 6.6% |
| Idaho | 5.3% |
| Maine | 5% |
| Minnesota | 6.25% |
| Montana | 5% |
| North Dakota | 1.5% |
| Nebraska | 3.5% |
| New Mexico | 5.9% |
| New York | 11.7% |
| Ohio | 3.5% |
| Oregon | 8% |
| Vermont | 6% |
No state income tax
No state withholding on severance pay.
Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming.
Standard withholding tables (no separate supplemental rate)
These states do not publish a separate supplemental flat rate. Employers use the regular withholding tables or the aggregate method. See your state Department of Revenue for current tables.
Alabama, Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Delaware, Georgia, Hawaii, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Missouri, Mississippi, North Carolina, New Jersey, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia, Wisconsin, West Virginia.
What this means if you were laid off
Most tax calculators tell you your federal withholding rate and stop there. Your state has its own withholding rule for severance, and it can add 5% to 12% on top of the federal 22%.
Not all states treat supplemental wages the same way. Some states publish a separate flat supplemental rate that employers apply to severance. California uses 6.6% for most severance pay and 10.23% for income classified as a bonus or stock option (CA EDD DE 231PS). New York uses 11.70% for 2026 (NY DTF NYS-50-T-NYS). Illinois applies its 4.95% flat income tax rate to all wages including severance (IL DOR IL-700-T). Most other states apply regular income tax withholding tables, which means your withholding depends on your W-4 election and bracket. Nine states have no income tax at all, so the only withholding is federal.
The practical effect: if you are in California and receive a $100,000 severance payment, your employer typically withholds 22% federal plus 6.6% California, totaling nearly 29% before FICA applies. At $100,000, Social Security withholding also applies if you have not yet hit the annual wage base.
The state withholding rate is not your final state tax liability. Like federal withholding, it is a deposit against your actual liability. If you moved states during the year, if you work in one state and live in another, or if your total income puts you in a different bracket, your actual state tax bill will differ from what was withheld.
This page shows which states have separate supplemental rates, which use standard withholding tables, and which have no income tax. The rates shown are verified against each state's authoritative withholding publication.
Frequently asked questions
- Does my state have a separate supplemental withholding rate for severance?
- It depends on your state. California, New York, and Illinois publish explicit flat supplemental rates. Most other states apply standard income tax withholding. Nine states levy no state income tax on wages.
- If my state uses standard withholding, what rate will be applied to my severance?
- Your employer applies the same withholding method used for your regular salary, based on your W-4 or equivalent state withholding form. The exact amount depends on your filing status, allowances claimed, and the size of the lump-sum payment.
- What if I live in one state but worked in another when I was laid off?
- You generally owe taxes to the state where you performed the work and possibly to your resident state, depending on each state's sourcing rules. Review your specific situation with a tax professional if your layoff crosses state lines.
- Can my employer withhold at the wrong state rate?
- Yes, especially in remote-work situations where your work location and residence differ. Confirm your state of record with your employer before the final paycheck is issued.
Calculate your net severance
Enter your offer, salary, and state to see federal plus state withholding and your actual take-home.
Calculate your severanceLast verified: 2026-05-04. Not legal, financial, or tax advice. Methodology.