California PTO payout calculator.
Enter your details
How are you paid?
Your full pay before taxes are taken out
Most full-time jobs are 40
How many PTO hours you have left. Check your latest pay stub.
This changes the legal advice below, not the dollar amount.
Enter your pay and unused PTO hours to download the report.
What you'll be paid
Payout before taxes
$0.00
Enter your pay and unused PTO hours to see what you'll get paid and how much goes to taxes.
Estimates only. Tax withholding may differ based on your full-year income, filing status, and deductions. Consult a tax professional for exact figures.
Disclaimer: Calculations are based on the 2026 IRS Supplemental Wage Rate (22% flat federal withholding) and current state labor department guidelines. Always consult an employment attorney for binding legal disputes.
Estimates only. PTO payout rights and tax withholding vary by state, employer policy, and individual circumstances. This is not legal, tax, or financial advice. Consult your state labor department or a qualified professional. See our methodology.
How much is a PTO payout in California?
Your California PTO payout equals accrued unused hours × your hourly rate. Payout is required by law. Expect 22% federal withholding, about 10.2% California tax, and 7.65% FICA.
California PTO payout law, in plain English
All accrued vacation is earned wages in California. Use-it-or-lose-it policies are illegal and unused PTO must be paid at the final rate of pay upon separation.
Reference: California Labor Code § 227.3. Use-it-or-lose-it policies are not allowed in California, and the statute of limitations for unpaid-wage claims is 3 years.
Caps, accrual rollover & penalties
Because California treats accrued vacation as earned wages, employers cannot impose use-it-or-lose-it forfeiture on already-earned time. Caps may limit future accrual but cannot erase time already earned, and late final pay can trigger wage penalties.
What this means for employees
Before you leave a job in California, take these steps: (1) Pull your exact PTO balance from your latest pay stub or HR portal — not a rough estimate. (2) Review your written policy. California treats accrued PTO as earned wages, so payout is mandatory regardless of what your handbook says. (3) Know the deadline. California employers must include PTO in your final paycheck. If it’s missing or incorrect, you have 3 years from separation to file a wage claim. (4) Calculate your gross and net. Use the calculator above to verify your final check — employers sometimes use the wrong hourly rate or omit hours. Expect roughly 39.9% total withholding (22% federal + 10.2% California + 7.65% FICA). (5) If you are denied payout, file a wage claim with the California labor department referencing California Labor Code § 227.3.
What this means for employers
Employers in California should document their PTO payout policy in writing and apply it consistently. Use-it-or-lose-it forfeiture of earned vacation is not permitted here — accrued time is treated as wages and must be paid at separation. Calculate the final payout at the employee’s regular rate of pay and withhold supplemental federal tax (22%), 10.2% state tax, and FICA. Keep a copy of the calculation in the employee file.
How to calculate your California PTO payout
To calculate a California PTO payout, divide annual salary by 2,080 to get the hourly rate (or use the stated hourly rate), then multiply by accrued unused hours for the gross amount. Apply the 22% federal supplemental rate, 10.2% California tax, and 7.65% FICA to estimate the net take-home.
California PTO payout FAQ
Does California require PTO payout when you quit or are fired?
In California, PTO payout is legally required — accrued vacation is treated as earned wages and must be paid at separation. Reference: California Labor Code § 227.3.
Are use-it-or-lose-it policies legal in California?
Use-it-or-lose-it policies are not allowed in California.
How much tax is taken from a PTO payout in California?
PTO payouts are supplemental wages: 22% federal withholding, an estimated 10.2% California supplemental rate, and 7.65% FICA.