How our calculator works.
Every figure this tool produces is an estimate generated from the formulas below. Calculations run entirely in your browser — no salary data is sent to or stored on our servers.
Gross payout
For salaried employees we derive an hourly rate by dividing annual salary by your scheduled hours per year (hours per week × 52). Hourly employees use their stated rate. Gross payout = hourly rate × accrued unused PTO hours.
Federal withholding
PTO payouts are supplemental wages under IRS Publication 15 (Section 7). We apply the flat 22% supplemental withholding rate, and 37% on any portion of a payout above $1,000,000 in a calendar year.
FICA
Social Security is withheld at 6.2% up to the annual wage base ($176,100 for 2025), and Medicare at 1.45% with no cap. The calculator applies the Social Security wage-base limit to the payout amount.
State withholding
Where a state publishes a flat supplemental wage rate, we apply it; states with no income tax (e.g. Texas, Florida, Washington) apply 0%. Rates reflect 2026-applicable figures and are estimates, not guarantees of your employer's actual withholding.
State payout law
Each state is classified as payout required, policy dependent, or not required, with the governing statute cited on each state page. Use-it-or-lose-it permissibility and the unpaid-wage statute of limitations are listed per state.
Limitations
Withholding is not the same as your final tax liability, which depends on your full-year income, filing status, and deductions and is settled when you file. These results are estimates and are not legal, tax, or financial advice.
Sources
Rates and rules on this site are compiled from the primary government sources below and re-checked on the review date shown. Each state page also cites the specific statute it relies on.
- IRS Publication 15 (Circular E), Employer's Tax Guide — flat 22% / 37% supplemental wage withholding.
- Social Security Administration — Contribution and Benefit Base — annual Social Security wage base.
- U.S. Department of Labor — State Labor Offices — state final-pay and vacation-payout rules.
Rates and state law data last reviewed: May 2026.