Severance Pay Calculator
🇺🇸 US-specific: 2026 federal supplemental wage withholding (22%/37%), FICA rates, and real state top-marginal tax rates.
Enter a non-negative severance amount and other income.
The 22% (37% above $1M in supplemental wages for the year) is a withholding rate, not your real tax rate — a common source of confusion when the check lands smaller than expected. The "gap at filing" compares that withholding to what you'll actually owe based on your full-year income and bracket; a negative gap means you may get some of it back as a refund. State withholding here uses each state's top marginal income tax rate.
Free severance pay tax calculator — separates the 22%/37% federal supplemental withholding (a withholding rate, not your real tax rate) from FICA, state withholding, and what you'll actually owe at filing, so you know why your check landed smaller than expected.
How it works
- Enter your severance amount, filing status, state, and any other income you'll have this year
- See federal supplemental withholding, FICA, and state withholding broken out separately
- Compare what's withheld now to your real tax liability at filing
Frequently asked questions
Is the 22% withheld from my severance my actual tax rate?
No — 22% (37% on any amount over $1 million in supplemental wages for the year) is a mandatory IRS withholding rate, not your final tax bill. Your real tax is based on your total income and bracket for the year, reconciled when you file. You may owe more, or get some of it back as a refund.
Is severance pay subject to FICA?
Yes — severance is treated as wages for FICA purposes, so Social Security (6.2%, up to the 2026 wage base) and Medicare (1.45%, plus 0.9% above $200,000/$250,000) are withheld the same as a regular paycheck.
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From the blog
Update history
- 2026-09-08 Launched: severance pay tax calculator breaking out federal supplemental withholding (22%/37%), FICA, and state withholding separately from the real tax liability at filing, addressing the widely-confirmed confusion between withholding and actual tax owed.