Texas 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 Texas?
Your Texas PTO payout equals accrued unused hours × your hourly rate. Payout is not required by state law. Expect 22% federal withholding, no state income tax, and 7.65% FICA.
Texas PTO payout law, in plain English
Texas has no state law requirement. Your rights depend entirely on your employment contract and company PTO policy.
Reference: Tex. Lab. Code § 61. Use-it-or-lose-it policies are allowed in Texas, and the statute of limitations for unpaid-wage claims is 2 years.
Caps, accrual rollover & penalties
Texas permits reasonable annual caps and use-it-or-lose-it rollover limits, provided they are written into policy and communicated in advance. Earned time below the cap is still owed where policy treats PTO as compensation.
What this means for employees
Before you leave a job in Texas, 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. Texas has no payout mandate, so your written policy or contract is the only thing that entitles you to payment. (3) Know the deadline. If your employer owes you PTO under their policy, you have 2 years to file a wage claim if it’s not paid. (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. Texas has no state income tax, so only federal (22%) and FICA (7.65%) apply to your payout. (5) If you are denied payout, file a wage claim with the Texas labor department referencing Tex. Lab. Code § 61.
What this means for employers
Employers in Texas should document their PTO payout policy in writing and apply it consistently. Use-it-or-lose-it policies are generally permitted here, but they must be clearly communicated to employees in advance. Calculate the final payout at the employee’s regular rate of pay and withhold supplemental federal tax (22%), no state income tax, and FICA. Keep a copy of the calculation in the employee file.
How to calculate your Texas PTO payout
To calculate a Texas 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, no state tax, and 7.65% FICA to estimate the net take-home.
Texas PTO payout FAQ
Does Texas require PTO payout when you quit or are fired?
In Texas, PTO payout is not required by state law and depends entirely on company policy. Reference: Tex. Lab. Code § 61.
Are use-it-or-lose-it policies legal in Texas?
Use-it-or-lose-it policies are allowed in Texas.
How much tax is taken from a PTO payout in Texas?
PTO payouts are supplemental wages: 22% federal withholding, no state income tax, and 7.65% FICA.
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