PTO Payout Calculator After Taxes
Calculate unused PTO payout after taxes. At $30/hr for 80 hrs ($2,400 gross), net cash-out is $1,568.40 after federal & FICA.
Your details
Change a value to update your estimate.
Your estimate
Cashing out unused paid time off starts with a simple gross amount—hours times hourly rate—but the deposit may be smaller after supplemental-wage withholding and payroll taxes.
This estimator uses the common separately identified supplemental-wage method: 22% federal withholding, 6.2% Social Security, and 1.45% Medicare. Add the state withholding percentage shown by your payroll department; enter zero in a no-income-tax state.
PTO payout examples
Estimated cash-out values for 40 hours and 80 hours of unused vacation time across standard hourly wages, after 22% federal supplemental tax and FICA.
| Hourly Rate | Unused Hours | Gross PTO Pay | Federal Tax (22%) | FICA | Est. Net Payout |
|---|---|---|---|---|---|
| $20.00/hr | 40 hrs | $800.00 | $176.00 | $61.20 | $562.80 |
| $20.00/hr | 80 hrs | $1,600.00 | $352.00 | $122.40 | $1,125.60 |
| $25.00/hr | 40 hrs | $1,000.00 | $220.00 | $76.50 | $703.50 |
| $25.00/hr | 80 hrs | $2,000.00 | $440.00 | $153.00 | $1,407.00 |
| $30.00/hr | 40 hrs | $1,200.00 | $264.00 | $91.80 | $844.20 |
| $30.00/hr | 80 hrs | $2,400.00 | $528.00 | $183.60 | $1,688.40 |
| $40.00/hr | 40 hrs | $1,600.00 | $352.00 | $122.40 | $1,125.60 |
| $40.00/hr | 80 hrs | $3,200.00 | $704.00 | $244.80 | $2,251.20 |
| $50.00/hr | 40 hrs | $2,000.00 | $440.00 | $153.00 | $1,407.00 |
| $50.00/hr | 80 hrs | $4,000.00 | $880.00 | $306.00 | $2,814.00 |
*Calculated using the 22% federal supplemental rate and 7.65% FICA withholding. State withholding is modeled at 0%; actual payout will depend on state tax and employer leave policy.
How the calculation works
- Gross payout = hourly rate × unused PTO hours.
- Federal supplemental withholding = 22% of gross.
- FICA = 6.2% Social Security + 1.45% Medicare.
- State withholding = gross × the rate you enter.
At $30/hour for 80 hours with 5% state withholding: $2,400 gross minus $528 federal, $183.60 FICA, and $120 state = $1,568.40 estimated payout.
Sources: IRS Publication 15 and U.S. Department of Labor vacation-leave guidance.
Frequently asked questions
Does PTO get taxed when paid out?
Yes. Accrued vacation and PTO payouts are treated by the IRS as supplemental wages or ordinary income. When cashed out upon leaving a job or during annual buybacks, employers withhold federal income tax (typically a 22% flat rate), FICA payroll taxes (6.2% Social Security + 1.45% Medicare = 7.65%), and state/local income taxes.
How is unused PTO payout calculated?
Gross payout is unused hours multiplied by your regular hourly rate. For example, 80 hours at $30/hour equals $2,400.00 before withholding. Whether an employer is legally obligated to pay unused leave upon termination depends on state labor laws (e.g. California requires full payout upon separation, while other states defer to company policy).
How much tax is withheld on a 40-hour or 80-hour PTO cash-out?
At $25/hour, 40 hours of PTO equals $1,000 gross. Under the 22% federal supplemental rate plus 7.65% FICA, federal deductions equal $296.50 (29.65%), leaving $703.50 in take-home pay before state tax. For 80 hours ($2,000 gross), total federal withholding is $593.00, leaving $1,407.00 take-home.
Why does this calculator use 22% federal withholding?
IRS Publication 15 describes a 22% optional flat withholding method for separately identified supplemental wages under $1 million. Payroll can instead combine the payment with regular wages, producing a different withholding result.
Is withholding the same as final tax?
No. Withholding is a prepayment. Your final income tax depends on total annual income, deductions, credits, and filing status; over- or under-withholding is reconciled when you file.
Does federal law require companies to pay unused PTO?
The Fair Labor Standards Act does not require vacation pay. State law and the employer's written policy or employment agreement determine whether unused PTO must be paid when employment ends.
Want the full background? Read How Paid Time Off (PTO) Cash-Outs Are Taxed (2026).
Related calculators
Page updated October 18, 2026. See our methodology and sources. Estimates are informational, not tax, payroll, or legal advice.