PTO cash-out calculator.
See the net value of cashing out unused PTO while still employed, after federal, state, and FICA tax.
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Gross payout before taxes
Select a state to see your net take-home estimate
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 cashing out PTO is valued
A cash-out pays you your hourly rate for each unused PTO hour, just like a payout at separation — the difference is you stay employed. Because the IRS treats it as a supplemental wage, withholding is a flat 22% federal plus your state rate and 7.65% FICA, so your take-home is meaningfully less than the gross.
Deciding between cashing out, rolling over, or taking the time? Compare options with the rollover calculator or get the full breakdown in the payout calculator.
Can you cash out PTO while still employed?
You can cash out PTO only if your employer offers a cash-out option in its written policy. Many companies allow it once per year or above a balance threshold. There is no federal right to cash out PTO while employed — it depends entirely on your employer's policy. Check your employee handbook or ask HR whether a cash-out window is available.
Cashing out PTO to pay off a 401k loan
Some employees consider cashing out PTO to pay off a 401k loan and avoid the tax penalty on a defaulted loan. The math: a 401k loan default triggers income tax plus a 10% early-withdrawal penalty, while a PTO cash-out is taxed at the 22% supplemental rate plus state and FICA. If your 401k loan balance is small and you have enough PTO, cashing out can be cheaper than defaulting — but run the numbers for your specific situation before deciding.
Cash-out value by state
State tax changes your net cash-out. Open your state for a pre-filled estimate:
Frequently asked questions
How is a PTO cash-out taxed?
A PTO cash-out is a supplemental wage: 22% flat federal withholding (37% above $1M), your state supplemental rate, and 7.65% FICA. The net is what lands in your paycheck.
Can I cash out PTO while still employed?
Only if your employer offers a cash-out option in its policy. Many companies allow it once per year or above a balance threshold. There is no federal right to cash out PTO while employed — it depends entirely on your employer.
Is cashing out PTO worth it?
Cashing out converts unused time to cash now but is taxed immediately at the supplemental rate. Compare the net cash value against the value of taking the time off or rolling it over before deciding.