How Much Will My PTO Payout Be? Complete 2026 Guide
The most common question when leaving a job is "how much will my PTO payout be?" Our PTO payout calculator 2026 provides the answer instantly, calculating gross value, tax withholding, and net take-home amount based on your state and salary. With over 75,000 monthly users, it's the most trusted tool for PTO cash out calculations in America. Whether you need a pto cash out calculator, termination payout calculator, or unused pto calculator, this tool covers it all.
PTO Payout Formula & Calculation
Gross Payout = Unused Hours × Hourly Rate. For 80 hours at $25/hour = $2,000 gross. Net Take-Home = Gross - (Federal Tax + State Tax + FICA). Federal tax is 22% flat rate for supplemental wages. FICA is 7.65% (Social Security 6.2% + Medicare 1.45%). State tax varies from 0% (TX, FL) to 13.3% (CA). Total tax withholding typically ranges 30-45% of gross.
PTO Payout Tax Rate — 2026 Federal & State Guide
The PTO payout tax rate in 2026 consists of three components: Federal Tax: 22% flat rate for supplemental wages under $1 million. If over $1M, rate is 37%. FICA: 7.65% (Social Security 6.2% + Medicare 1.45%). State Tax: Varies by state. California 9.3%, New York 6.85%, Texas 0%, Florida 0%, Illinois 4.95%. Total effective tax rate is typically 30-45% depending on your state.
PTO Payout Examples by State (2026)
Texas Employee: 80 hours × $30/hour = $2,400 gross. Federal $528 + State $0 + FICA $183.60 = $711.60 tax. Net = $1,688.40 (70.4% of gross). California Employee: 100 hours × $35/hour = $3,500 gross. Federal $770 + State $325.50 + FICA $267.75 = $1,363.25 tax. Net = $2,136.75 (61.1% of gross). New York Employee: 60 hours × $40/hour = $2,400 gross. Federal $528 + State $164.40 + FICA $183.60 = $876 tax. Net = $1,524 (63.5% of gross).
State PTO Payout Laws & Deadlines (2026)
California: Payout required. Deadline: Immediate if fired, 72 hours if quit. Penalties: Waiting time penalties up to 30 days pay. New York: Payout required. Deadline: Next regular payday. Penalties: Liquidated damages up to 25%. Illinois: Payout required. Deadline: Next payday. Penalties: Actual damages + attorney fees. Texas/Florida: No state law - follows company policy. Massachusetts/Colorado: Payout required, strict deadlines.
How Is PTO Payout Taxed? Complete Breakdown
PTO payout is taxed as supplemental wages at a 22% federal flat rate. If your total supplemental wages exceed $1 million, the excess is taxed at 37%. Additionally, you pay FICA (7.65%) and state income tax (0-13.3%). Your employer withholds these taxes, and you receive the net amount. You may get a refund when filing taxes if too much was withheld. Is PTO payout taxed differently than regular pay? Yes, because it's taxed at the flat 22% supplemental rate instead of your marginal tax rate.