Severance Calculator
Weekly pay x weeks of severance, then an after-tax estimate using the federal supplemental method.
Severance doesn't run through payroll like a normal check. Employers almost always withhold it at the flat federal supplemental rate instead of your usual schedule, so the amount that lands can catch you off guard. Enter your weekly pay, how many weeks you're getting, and your state to get an after-tax estimate built on that 22% federal rate, FICA, and your state's supplemental rate.
Frequently asked questions
How is severance pay taxed?
Severance is a supplemental wage. The IRS default withholding is a flat 22% federal rate (37% on the portion of your year-to-date supplemental wages over $1,000,000), plus FICA (6.2% Social Security + 1.45% Medicare), plus your state's supplemental withholding rate if it has one.
Is the aggregate method different from what this calculator shows?
Yes. Employers can withhold using the aggregate method (combined with your regular paycheck) instead of the flat 22% supplemental rate. This calculator uses the flat supplemental method, the more common default for a one-time severance payment.
Does severance pay affect Social Security wage base limits?
It can. If severance pushes your year-to-date Social Security wages over the annual wage base, the excess isn't subject to Social Security tax. This calculator treats severance as a standalone payment and doesn't track prior year-to-date wages.
Why does my state show 0% supplemental withholding?
Several states (including FL, TX, and others with no wage income tax) have no state supplemental withholding rate, so only the federal and FICA withholding apply.
After-tax = gross − federal supplemental 22% − FICA 7.65% − state supplemental. Not tax advice.