PTO Payout Calculator
Enter your pay rate and unused PTO hours to see your gross payout, tax withholdings, and estimated take-home amount.
Your gross annual salary before taxes
Accrued PTO hours you haven't used
Your regular weekly schedule
Supplemental wage rate is 22% for most
Your state income tax rate (0% for no-tax states)
Results are estimates based on common PTO policies. Actual employer policies and state laws may differ. Full disclaimer.
How it works
Our calculator converts your unused PTO hours into a dollar amount by multiplying hours by your effective hourly rate. It then estimates federal tax, state tax, and FICA (Social Security + Medicare) withholdings to show your expected net payout, which is what actually hits your bank account.
The PTO Payout Formula
Hourly Rate = Annual Salary ÷ (Hours Per Week × 52)
Gross Payout = Unused PTO Hours × Hourly Rate
Net Payout = Gross − Federal Tax − State Tax − FICA (7.65%)
Taxes on PTO payouts
When you receive a PTO payout (whether upon resignation, termination, or voluntary cash-out), the IRS treats it as supplemental wages. This means your employer will withhold taxes differently than regular paycheck withholding:
- Federal income tax: Flat 22% supplemental rate (37% if over $1 million)
- Social Security: 6.2% (up to the wage base limit of $168,600 in 2025)
- Medicare: 1.45% (additional 0.9% above $200,000)
- State income tax: Varies from 0% (TX, FL, WA) to 13.3% (CA)
The 22% federal rate is a withholding rate, not your final tax liability. If your actual tax bracket is lower (10%, 12%), you'll receive the difference as a refund. If your bracket is higher (24%, 32%), you may owe additional tax.
Example Calculation
A salaried employee leaving their job:
- Annual salary: $75,000
- Hours per week: 40
- Unused PTO: 96 hours (12 days)
- State: California (9.3% tax rate)
Step-by-step:
- Hourly rate: $75,000 ÷ 2,080 = $36.06/hour
- Gross payout: 96 × $36.06 = $3,461.76
- Federal tax (22%): −$761.59
- State tax (9.3%): −$321.94
- FICA (7.65%): −$264.82
- Net payout: $2,113.41
State payout requirements
Not all states mandate that employers pay out unused PTO. Here's a quick overview:
| Category | States |
|---|---|
| Always required | CA, CO, IL, MA, MT, NE, ND, RI |
| Required if policy promises it | AL, AZ, CT, DC, HI, IN, KS, ME, MD, MI, MN, NH, NJ, NY, NC, OH, OK, PA, SC, TN, UT, WV, WI, WY |
| No requirement | FL, GA, TX, VA, and others |
For a complete guide, read our detailed article on PTO payout laws by state.
Payout timing
PTO payout timing varies by state and reason for separation:
- California: Final day of employment (if notice given) or within 72 hours
- Colorado: Next regular payday
- Illinois: Next regular payday
- Massachusetts: Final day of employment
If your employer fails to pay on time, many states impose waiting-time penalties. In California, this can be up to 30 days of additional wages.
Related Guides
- Is PTO Payout Taxable? · Detailed breakdown of how PTO payouts are taxed.
- PTO for Hourly Employees · How per-hour accrual works and what hourly workers are owed.
- How Is PTO Calculated? · Understanding the accrual methods behind your PTO balance.
Want to track your ongoing PTO accrual?
Calculate how much PTO you earn each pay period and project your future balance.
Try PTO Calculator →PTO Payout Calculator — FAQ
- How is PTO payout calculated?
- PTO payout is calculated by multiplying your unused PTO hours by your hourly rate. For salaried employees, your hourly rate equals your annual salary divided by 2,080 (40 hours × 52 weeks). For example: $70,000 salary ÷ 2,080 = $33.65/hour × 60 unused hours = $2,019 gross payout.
- Is PTO payout taxable?
- Yes. PTO payouts are classified as supplemental wages by the IRS. They are subject to federal income tax (usually withheld at the flat 22% supplemental rate), state income tax, Social Security (6.2%), and Medicare (1.45%). Your net payout will be approximately 65-75% of the gross amount depending on your state.
- Are employers required to pay out unused PTO?
- It depends on your state. States like California, Colorado, Illinois, Massachusetts, and Montana require employers to pay out all accrued PTO upon separation. Other states like Florida, Georgia, and Texas have no payout requirement but may require it if promised in the employee handbook or policy.
- Do I get PTO payout if I'm fired?
- In states with mandatory payout laws, yes. You receive your accrued PTO regardless of whether you resign, are fired, or laid off. In other states, check your employer's policy. Many companies pay out for voluntary separation but not for termination with cause.
- When do I receive my PTO payout?
- Most states require PTO payout on your final paycheck or within a set timeframe (often 72 hours to 30 days depending on the state). California requires it on the last day of employment if you gave notice, or within 72 hours if termination was unexpected.
- Can my employer reduce my PTO balance before payout?
- In most cases, employers cannot retroactively reduce already-accrued PTO. However, they can implement 'use-it-or-lose-it' policies (where legal), change future accrual rates, or cap balances. Accrued PTO is generally considered earned compensation and cannot be forfeited once earned in states with payout laws.
Related Calculators
- PTO Calculator · Calculate your total paid time off accrual based on your employer's policy, hours worked, and accrual rate.
- Holiday Pay Calculator · Determine your holiday pay rate including time-and-a-half, double time, and total holiday compensation.