Severance by state
Severance pay, state by state.
Federal tax on severance is a flat 22% everywhere. But your state takes anywhere from nothing to double digits — and weekly unemployment ranges from $235 to $1,208. Pick your state, or run the numbers in the calculator.
9
states take no income tax on your severance.
22%
flat federal withholding on a lump sum — the same in every state.
$1,208
top weekly unemployment (Washington); the floor is $235.
The nine that take nothing
No state income tax on severance.
Every state
Find yours.
Alabama 5%
Alaska No tax
Arizona 2.5%
Arkansas 3.9%
California 6.6%
Colorado 4.4%
Connecticut 5%
Delaware 5%
District of Columbia 6.5%
Florida No tax
Georgia 5.19%
Hawaii 7.9%
Idaho 5.3%
Illinois 4.95%
Indiana 3%
Iowa 3.8%
Kansas 5%
Kentucky 4%
Louisiana 3%
Maine 5%
Maryland 4.75%
Massachusetts 5%
Michigan 4.25%
Minnesota 6.25%
Mississippi 4%
Missouri 4.7%
Montana 5%
Nebraska 3.5%
Nevada No tax
New Hampshire No tax
New Jersey 5.5%
New Mexico 5.9%
New York 11.7%
North Carolina 4.09%
North Dakota 1.5%
Ohio 3.5%
Oklahoma 4.5%
Oregon 8%
Pennsylvania 3.07%
Rhode Island 5.99%
South Carolina 6.2%
South Dakota No tax
Tennessee No tax
Texas No tax
Utah 4.5%
Vermont 6%
Virginia 5.75%
Washington No tax
West Virginia 4.5%
Wisconsin 5.3%
Wyoming No tax
No state by that name.
Not sure how yours nets out?
The calculator has every state's rate and unemployment limit built in — add your numbers and watch the take-home update.