Severance in New York

New Yorkseverance & layoff calculator

State law shapes how much of your severance you keep, when you can collect unemployment, and whether your employer owed you advance notice. Here’s what applies in New York.

Top marginal tax

10.90%

Severance is taxed at your state's top marginal rate when it pushes you into that bracket.

WARN Act

State mini-WARN: 50+ employees

New York layers its own WARN-style protections on top of federal law. NY WARN requires 90 days advance notice (50% more than federal).

Unemployment max

$869 / week

Up to 26 weeks. Unemployment insurance runs concurrently — you can collect benefits even while severance is paid out.

PTO payout

Depends on employer policy

No statutory requirement to pay out unused PTO — check your employee handbook or offer letter for any contractual obligation.

Right to work

No

Non-right-to-work; union representation may be relevant to severance and grievance procedures.

Notes for New York

Worth knowing

FY26 budget raised UI max to $869 effective Oct 13, 2025. Severance generally non-disqualifying when paid >30 days post-separation.

Sources: state department of labor, state department of revenue, and the U.S. Department of Labor ETA. Last verified: 2026-04.