Severance by state
Severance pay, state by state.
Severance is taxed federally at a flat 22% everywhere — but your state withholding ranges from 0% to double digits, and unemployment limits vary a lot. Pick your state for the specifics, or run your numbers in the calculator.
9 states take no state income tax on severance: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Alabama 5% Alaska No tax Arizona 2.5% Arkansas 3.9% California 6.6% Colorado 4.4% Connecticut 5% Delaware 5% District of Columbia 6.5% Florida No tax Georgia 5.19% Hawaii 7.9% Idaho 5.3% Illinois 4.95% Indiana 3% Iowa 3.8% Kansas 5% Kentucky 4% Louisiana 3% Maine 5% Maryland 4.75% Massachusetts 5% Michigan 4.25% Minnesota 6.25% Mississippi 4% Missouri 4.7% Montana 5% Nebraska 3.5% Nevada No tax New Hampshire No tax New Jersey 5.5% New Mexico 5.9% New York 11.7% North Carolina 4.09% North Dakota 1.5% Ohio 3.5% Oklahoma 4.5% Oregon 8% Pennsylvania 3.07% Rhode Island 5.99% South Carolina 6.2% South Dakota No tax Tennessee No tax Texas No tax Utah 4.5% Vermont 6% Virginia 5.75% Washington No tax West Virginia 4.5% Wisconsin 5.3% Wyoming No tax