Federal Supplemental Wage Withholding Rate (2026)
The IRS flat rate used to withhold federal income tax from severance pay and other supplemental wages.
Current value (2026)
22%
Federal supplemental wage flat rate (mandatory, >$1M per employer): 37%
Federal supplemental wage threshold above which the 37% flat rate becomes mandatory (per employer per calendar year): $1 million
Primary source
Historical values
| Year | Value |
|---|---|
| 2026 | 22% |
| 2025 | 22% |
| 2024 | 22% |
What this means if you were laid off
Layoff-specific context for this figure is under editorial review. Check back soon.
See how this affects your severance
The calculator applies current withholding rates, UI maximums, and contribution limits to your specific situation.
Calculate your severanceLast verified: 2026-04-30. Not legal, financial, or tax advice. Methodology.