Does this include Social Security/Medicare?

No. This focuses on income tax withholding. Payroll taxes may also apply.

Will I owe more at filing?

Possibly, if your effective tax is higher than the flat supplemental rate. Add extra withholding to cushion.

Do states use flat supplemental rates?

Some do. Use the rate your state/employer applies for best accuracy.

Can I request more withholding?

Often yes—enter the additional amount to see net after the extra withholding.

Is this legal/tax advice?

No. It’s a quick estimate; consult a tax professional for your situation.

finance calculator

Severance Pay Tax Calculator

Estimate withholding and net severance using supplemental flat rates plus state tax and optional extra withholding.

Results

Federal withholding: $4,400
State withholding: $1,000
Total withholding: $5,400
Net severance after withholding: $14,600

How to use this calculator

Enter gross severance amount.
Set federal supplemental withholding rate and state rate.
Optionally add extra withholding.
Review federal/state withholding, total withheld, and net severance.

Inputs explained

Supplemental rate: Federal flat rate for bonuses/severance (22% for many scenarios).
State rate: Your marginal state rate; adjust if your state uses a flat supplemental rate.
Additional withholding: Extra amount to withhold to avoid a surprise tax bill later.

How it works

Severance is often taxed at the supplemental flat rate (e.g., 22% federal). State tax is applied at your state rate. Optional extra withholding can be added for safety.

Formula

Federal withholding = Gross × Supplemental rate
State withholding = Gross × State rate
Total withheld = Federal + State + Extra
Net = Gross − Total withheld

When to use it

Checking take-home severance with standard supplemental withholding.
Adding extra withholding to offset expected tax owed at filing.
Comparing different state rates or supplemental rates if employer uses a different percentage.

Tips & cautions

Actual year-end tax can differ if severance bumps you into a higher bracket or affects deductions/credits.
Some states have specific supplemental rates; adjust the state rate accordingly.
Consider safe harbor rules and total withholding for the year to avoid penalties.
Simplified: does not model progressive brackets, SS/Medicare, or deductions/credits.
Assumes flat supplemental withholding; actual payroll practices may vary.
Informational only; not a filing tool.

Worked examples

$20,000 severance, 22% fed, 5% state

Federal = $4,400
State = $1,000
Total = $5,400
Net = $14,600

$30,000 severance, 22% fed, 6% state, $2k extra

Federal = $6,600
State = $1,800
Extra = $2,000
Net = $19,600

Deep dive

Estimate net severance by entering gross severance, federal supplemental withholding rate, state rate, and any extra withholding.

See federal/state withholding totals and take-home severance in seconds.

FAQs

Does this include Social Security/Medicare?: No. This focuses on income tax withholding. Payroll taxes may also apply.
Will I owe more at filing?: Possibly, if your effective tax is higher than the flat supplemental rate. Add extra withholding to cushion.
Do states use flat supplemental rates?: Some do. Use the rate your state/employer applies for best accuracy.
Can I request more withholding?: Often yes—enter the additional amount to see net after the extra withholding.
Is this legal/tax advice?: No. It’s a quick estimate; consult a tax professional for your situation.

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